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CHICAGO - Tempus AI, Inc. (NASDAQ: TEM), a $5.9 billion market cap company specializing in artificial intelligence for precision medicine, has announced its preliminary financial results for the fourth quarter and full year ended December 31, 2024. According to InvestingPro data, the stock has experienced an 11% gain year-to-date, despite a recent 8% decline over the past week. The unaudited report indicates a revenue of approximately $693 million for the full year, marking a 30% increase from the previous year. The fourth quarter alone saw revenues of about $200 million, a 35% rise year-over-year.
The company's adjusted EBITDA, a non-GAAP financial measure, also showed continued improvement both for the full year and in the sequential fourth quarter of 2024. InvestingPro analysis indicates the company maintains a "FAIR" overall financial health score, though it currently operates with negative EBITDA of $656 million for the last twelve months. Eric Lefkofsky, Founder and CEO of Tempus, highlighted the robust growth in the company's core businesses, with genomics revenue expected to grow by around 30% in the fourth quarter. Data and services revenue is projected to increase by roughly 45%, bringing the company close to meeting its revenue and adjusted EBITDA guidance for the year.
Despite a noted softness in the company's CRO revenues, momentum was gained throughout the year. Lefkofsky's statement came ahead of Tempus's presentation at the 43rd Annual J.P. Morgan Healthcare Conference, where an updated investor deck was to be shared, including details on the expected closure of the Ambry acquisition.
Tempus has cautioned that these preliminary results are subject to change as it finalizes its financial statements, and there can be no assurance that the final results will not differ from these estimates. The company is currently completing its year-end close and review procedures.
Tempus is known for leveraging one of the world's largest libraries of multimodal data and an operating system that makes this data accessible for healthcare applications. The goal is to provide AI-enabled precision medicine solutions to physicians for personalized patient care and to aid in the discovery and development of optimal therapeutics.
The company plans to report its complete fourth quarter and full year 2024 financial results during its first earnings call of 2025, scheduled for February 26, 2025. This announcement is based on a press release statement. InvestingPro subscribers have access to 6 additional ProTips and comprehensive financial metrics that could help evaluate Tempus's potential ahead of the earnings release. Based on InvestingPro's Fair Value analysis, the stock currently appears undervalued despite its recent market performance.
In other recent news, Tempus AI has been the subject of several notable developments. Piper Sandler raised the price target for Tempus AI from $40 to $70, maintaining a neutral rating. This adjustment came in the wake of Tempus AI's recent earnings report. The acquisition of genetics firm Ambry was also highlighted, although its impact on Tempus AI's financials was not factored into the revised estimates.
Stifel downgraded Tempus AI's stock from Buy to Hold but increased the price target to $65. Needham, on the other hand, raised its stock price target to $56 and maintained a Buy rating. Tempus AI's recent acquisition of Ambry Genetics and the FDA clearance of its Tempus ECG-AF device, an AI tool for identifying patients at higher risk of atrial fibrillation/flutter, were other significant developments.
A strategic partnership with Avacta Therapeutics was also announced, aimed at utilizing AI for the advancement of oncology drug development. This collaboration will provide Avacta with access to Tempus AI's comprehensive multimodal datasets. These are some of the recent developments surrounding Tempus AI.
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