Key Takeaways
- Tempus AI’s fourth-quarter results missed estimates as its costs increased.
- The medical technology firm’s non-GAAP operating expenses rose 6.5% year-over-year as the company expanded operations.
- Tempus AI gave weaker-than-expected guidance for full-year adjusted EBITDA.
Shares of Tempus AI (TEM) sank 17% Tuesday, a day after the provider of artificial intelligence medical technology reported worse-than-anticipated results and guidance, with costs rising as the company expanded.
Tempus posted a fourth-quarter adjusted net loss of $0.18 per share, $0.02 more per share than estimates by analysts surveyed by Visible Alpha. Revenue jumped 36% year-over-year to $200.7 million, but that also was below expectations.
Sales at the genomics unit were up more than 30% to $120.4 million, and they increased nearly 45% to $80.2 million at the data and services business.
The company’s non-GAAP operating expenses grew 6.5% to $142.5 million. In a letter to shareholders, founder and CEO Erik Lefkofsky and CFO Jim Rogers explained that while Tempus reduced its ramp up in hiring during 2024, “a portion of the year-over-year increases in Non-GAAP operating expenses was driven by increases in the salesforce related to expanding territories to account for growth in overall testing volume and the launch of our MRD assays, along with modest increases in our technology and R&D staff.”
Tempus sees full-year adjusted EBITDA of $5 million, while the Visible Alpha outlook was for nearly $6 million. It sees revenue at $1.24 billion, slightly above forecasts.Â
Tempus AI shares only began being traded publicly last June, and despite today’s drop they’re still about 45% above their initial price.
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