Tempus AI, Inc. TEM reported fourth-quarter 2024 adjusted loss per share of 18 cents, which missed the Zacks Consensus Estimate of a loss of 15 cents by 16.7%.
GAAP loss per share was 8 cents.
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Revenues totaled $200.7 million, which missed the Zacks Consensus Estimate by 2.7%. The top line, however, improved 35.8% on a year-over-year basis.
Tempus AI, Inc. price-consensus-eps-surprise-chart | Tempus AI, Inc. Quote
Geonomics
This segment reported sales of $120.4 million, up 30.6% year over year. This improvement was driven by the segment’s unit growth at 22.5% compared to the year-ago quarter. The segment’s adjusted gross profit totaled $57.4 million, up 42.8% year over year. The segment’s adjusted gross margin expanded 420 basis points (bps) to 49.6% compared with the prior-year quarter.
Data and Services
Sales in the segment amounted to $80.2 million, up 44.6% year over year. Adjusted gross profit totaled $64.4 million, up 62.2% year over year. Adjusted gross margin expanded 880 bps to 80.3%.
Adjusted gross profit totaled $124.2 million, up 52.3% from the year-ago quarter’s level. The adjusted gross margin expanded 670 bps to 61.9%.
Total adjusted operating expenses were $142.5 million, up 6.5% from the year-ago quarter’s level.
Total loss from operations amounted to $50.7 million, marking an improvement of 3.1% from the year-ago period’s loss.
Tempus exited the fourth quarter with cash and cash equivalents and marketable securities of $341 million compared with $388 million in the third quarter.
Cumulative net cash used in operating activities totaled $189 million compared with $214.3 million a year ago.
Tempus expects full-year 2025 revenues of approximately $1.24 billion, suggesting an approximate year-over-year growth of 79%. This compares to the previous guidance of $1.23 billion. The Zacks Consensus Estimate for revenues is pegged at $900.3 million.
Tempus exited the fourth quarter of 2024 with disappointing results, as both earnings and revenues missed their respective Zacks Consensus Estimate. However, the company witnessed strong top-line growth in both its segments. TEM’s Data and Services segment also witnessed significant expansion in adjusted gross margin and impressive top-line growth.
Meanwhile, the company continues to incur losses at the operating level. Shares of TEM lost 13.7% during after-market trading following its fourth-quarter results. However, the company’s shares have gained 47.8% in the past six months compared with the industry’s growth of 16.4%. The broader S&P 500 Index has increased 7.1% in the same time frame.
