Tempus AI Inc

Tempus AI, Inc. (NASDAQ: TEM) is a technology company. The Company provides next generation diagnostics across multiple disease areas, with technology capabilities, harnessing the data and analytics to help personalize medicine. The Company’s product lines include genomics, data, and artificial intelligence applications (AI). Its genomics product line leverages its laboratories to provide next generation sequencing, diagnostics, polymerase chain reaction (PCR), profiling, molecular genotyping, and other anatomic and molecular pathology testing.

Recent Business and Financial Updates

• Financial Performance Overview: Tempus AI, Inc. (NASDAQ: TEM), a leading technology company in AI-driven precision medicine and patient care, has announced its financial results for the fourth quarter and full year ending December 31, 2024. The company experienced accelerated year-over-year revenue growth of 35.8% in the fourth quarter, with gross profit increasing by 49.7%, primarily driven by its Data and Services segment. Tempus concluded the year with USD 940 million in Total Remaining Contract Value and a net revenue retention rate of 140%. The acquisition of Ambry Genetics was successfully completed on February 3, 2025. Furthermore, Tempus has increased its revenue guidance for 2025 to USD 1.24 billion and anticipates a full year Adjusted EBITDA of approximately USD 5 million, reflecting an improvement of about USD 110 million over 2024.
• Fourth Quarter 2024 Financial Highlights: In the fourth quarter of 2024, Tempus AI achieved a revenue increase of 35.8% year-over-year, reaching USD 200.7 million. The Genomics segment contributed USD 120.4 million, reflecting a 30.6% year-over-year growth, with unit growth at 22.5%. Data and Services generated USD 80.2 million, marking a 44.6% increase. Gross profit surged by 49.7% to USD 122.1 million, largely attributed to the strong performance of Data and Services. The net loss for the quarter stood at USD 13.0 million, including USD 32.4 million in stock compensation expenses and related employer payroll taxes, significantly reduced from the net loss of USD 50.5 million in Q4 2023. Adjusted EBITDA improved to USD (7.8) million from USD (35.1) million in the same quarter of the previous year.
• Full-Year 2024 Financial Summary: For the full year 2024, Tempus AI reported a total revenue of USD 693.4 million, representing a 30.4% increase compared to 2023. The Genomics segment accounted for USD 451.7 million, reflecting a 24.4% year-over-year growth, while the Data and Services segment contributed USD 241.6 million, demonstrating a 43.2% increase. The company ended the year with a Total Remaining Contract Value of USD 940 million and a net revenue retention rate of 140%. Annual gross profit rose by 33.2% to USD 381.1 million. The net loss for 2024 was USD 705.8 million, including USD 547.7 million in stock compensation expenses and related employer payroll taxes. Adjusted EBITDA showed a year-over-year improvement of USD 49.5 million, reaching USD (104.7) million.
• Strategic and Operational Developments: In the fourth quarter and early 2025, Tempus AI achieved significant milestones, including the completion of the Ambry Genetics acquisition on February 3, 2025. The company also launched its FDA-approved, NGS-based in vitro diagnostic device, xT CDx, which received ADLT status and a reimbursement rate of USD 4,500 per test. Additionally, a decision by the Centers for Medicare and Medicaid Services (CMS) will allow reimbursement for cardiac dysfunction assessments using the Tempus ECG-AF algorithm at a reimbursement rate of USD 138 per algorithm. The company has expanded its network and is now connected to approximately 3,000 providers in the United States, having signed agreements with major insurance providers such as Blue Cross Blue Shield of Illinois, Blue Shield of California, and Avalon Healthcare Solutions.
• Financial Outlook for 2025: Tempus AI has provided an optimistic financial outlook for 2025, projecting consolidated revenue of approximately USD 1.24 billion, representing an annual growth rate of 79%. The company also anticipates a significant improvement in profitability, expecting a positive Adjusted EBITDA of USD 5 million for the full year, an improvement of approximately USD 110 million over 2024. This outlook underscores the company's confidence in its continued growth trajectory, driven by advancements in AI-powered diagnostics and expanded market reach.
  

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 38.71, near oversold levels, with expectations of a consolidation or a further continuation towards downside if USD 45.00-USD 50.00 resistance levels hold. Additionally, the stock's current positioning is below 50-Day SMA which can act as a short to medium term resistance.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Tempus AI, Inc. (NASDAQ: TEM) at the current price of USD 46.82, as of March 11, 2025, at 06:40 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 11, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.