Q4 2024 Tempus AI Inc Earnings Call Transcript
Key Points
- Tempus AI Inc (TEM) reported a 35.8% year-over-year revenue growth in Q4 2024, with gross profit growth accelerating to 49.7%.
- The company ended the year with $940 million in total remaining contract value and a 140% net revenue retention rate, indicating strong customer retention and future revenue potential.
- Tempus AI Inc (TEM) successfully closed the acquisition of Ambry Genetics, which is expected to contribute positively to the company's financials.
- The company increased its revenue guidance for 2025 from $1.23 billion to $1.24 billion and expects to generate about $5 million of adjusted EBITDA.
- Tempus AI Inc (TEM) extended its agreement with Google for another five years, securing best-in-class rates and providing financial flexibility.
- The timing of data delivery projects can be unpredictable, with a significant $10 million data delivery slipping out of Q4, affecting quarterly revenue.
- Ambry Genetics' growth rate is expected to slow down to the high-10s in 2025 due to lapping of previous accelerants, such as ASP headwinds.
- The total remaining contract value has been relatively stable in the low $900 million range, which may not fully reflect future revenue growth potential.
- The company faces seasonality challenges, with Q1 typically being the lowest revenue quarter due to holiday slowdowns.
- There are no significant synergies expected from the Ambry acquisition in 2025, as the company plans to run Ambry as a standalone business initially.
Thank you for standing by. My name is Jason and I will be a conference operator for today. At this time, I would like to welcome everyone to the Tempus fourth-quarter 2024 financial results conference call.
(Operator Instructions)
I would now turn the call over to Lizzy Krutoholow. Please go ahead.
Thank you, Jason. Good afternoon and welcome to Tempus fourth-quarter 2024 conference call. This afternoon, Tempus released results for the quarter and the year ended December 31, 2024. Joining me today from Tempus are Eric Lefkofsky, Founder and CEO of Tempus; and Jim Rogers, CFO.
Before we begin, I would like to remind you that during this call, management may make forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of these risks, please visit our Form 10-K filed today, February 24, 2025, as well as any future reports that we file with the SEC.
During the call, we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
