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.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenue DetailsRevenues 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.Segmental AnalysisGeonomicsThis segment reported sales of $120.4 million, up 30.6% ...

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates, weekly webinars, and community support for investors [2]

Financial Data and Key Metrics Changes - Revenue growth accelerated to 35.8% year-over-year in Q4 2024, while gross profit growth accelerated to 49.7% [6][7] - Total remaining contract value ended the year at $940 million, with a net revenue retention rate of 140% [7][8] - Revenue guidance for 2025 was increased from $1.23 billion to $1.24 billion, with expectations of generating about $5 million in adjusted EBITDA [8][10] Business Line Data and Key Metrics Changes - The Data and Services business had a strong Q4, contributing significantly to the overall growth and gross profit [7][11] - The acquisition of Ambry Genetics is expected to contribute to revenue in 2025, with two months of results included in the upcoming quarter [8][15] Market Data and Key Metrics Changes - The company anticipates that the Ambry business will experience seasonality similar to its own, with revenues expected to grow throughout the year despite typical holiday slowdowns [20][21] - The company is now connected to approximately 3,000 hospitals, enhancing its ability to deploy AI-enabled insights across the healthcare system [81] Company Strategy and Development Direction - The company aims to focus on sustainable long-term growth rather than maximizing short-term profits, with a long-term growth rate target of around 25% [43][44] - The company plans to leverage its connectivity to integrate third-party algorithms into its platform, enhancing its service offerings [82] Management's Comments on Operating Environment and Future Outlook - Management views recent regulatory changes at the FDA as a potential tailwind for AI-enabled diagnostics, although minor staffing slowdowns may occur [65] - The company is optimistic about the reimbursement landscape for AI-based diagnostics, citing recent successes as indicators of future potential [98] Other Important Information - The company has extended its agreement with Google for another five years, allowing access to favorable rates [9][10] - The company is not currently focused on large M&A activities but may consider smaller acquisitions in the Data and AI sectors [95] Q&A Session Summary Question: What is the timeline for bringing somatic workflows to the new West Coast lab from Ambry? - Management indicated that while there are plans to integrate workflows, it is a longer-term initiative with no immediate changes expected in the next few quarters [15][17] Question: How should we think about the seasonality in the Ambry business? - Management expects revenues to grow throughout the year, similar to Tempus, despite some seasonal slowdowns around holidays [20][21] Question: Can you quantify the impact of a delayed data delivery project? - A significant data delivery project worth over $10 million was delayed, which could have impacted Q4 revenue [23][25] Question: What are the growth expectations for Ambry in 2025? - Management anticipates Ambry's growth rate to be in the high teens, while core Tempus is expected to grow closer to 30% [32][33] Question: What is the expected impact of going in-network with Blue Cross Blue Shield? - Management noted that while no single payer would materially change the reimbursement profile, it is a positive step towards improving ASPs [60][61] Question: What are the company's investment priorities for the coming year? - The company plans to focus on building its genomics and Data businesses while deploying its connected network to grow its applications business [110]

Tempus AI, Inc. Investor Presentation Q4 2024 February 24, 2025 Disclaimer This presentation contains forward-looking statements that reflect Tempus AI, Inc.'s (the "Company" or "Tempus") current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, future performance and business. Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and unce ...

Precision Medicine and Intelligent Diagnostics - The company aims to unlock precision medicine through Intelligent Diagnostics, utilizing AI to enhance laboratory test accuracy and personalization [19]. - The company believes that the adoption of Intelligent Diagnostics can significantly improve patient care by incorporating diverse data sources, including molecular and clinical data [35]. - Intelligent Diagnostics can disrupt the clinical trial process by contextualizing test results and incorporating real-world evidence, leading to better data-driven decisions [39]. - The platform is designed to deploy AI at scale, utilizing multimodal datasets across various disease areas, including oncology, neurology, and cardiology [31]. Data Integration and Platform Capabilities - The Tempus Platform integrates approximately 700 unique data connections from around 3,000 healthcare institutions, facilitating real-time data exchange [24]. - The company has established data pipes to facilitate the free exchange of data between physicians and diagnostic companies, addressing the current lack of integrated networks in healthcare [30]. - Tempus's Platform enables ingestion of healthcare data in near real-time, including molecular, clinical, and imaging data, facilitating precision medicine [44]. - The company has developed proprietary software tools that utilize AI techniques to generate patient-specific insights and improve diagnostic capabilities [56]. Product Offerings and Innovations - The company has developed three product lines: Genomics, Data, and AI Applications, which create network effects and enhance the overall value of their offerings [25]. - The Genomics product line provides Next Generation Sequencing (NGS) diagnostics and is designed to improve accuracy through integration with clinical data [26]. - The AI Applications product line includes "Next," an AI platform that identifies care gaps for oncology and cardiology patients, leveraging machine learning [26]. - Tempus has expanded its product offerings to include neuropsychiatry applications, such as TempusPRO, which tracks patient-reported outcomes [74]. Clinical Trials and Patient Enrollment - The Trials product has facilitated the identification of over 30,000 patients for potential enrollment in more than 250 clinical trials as of December 31, 2024 [100]. - The average time to activate new trial sites through the Trials product is approximately two weeks, significantly shorter than the industry average of 6-12 months [102]. - The company utilizes a large genomic sequencing business to identify patients that are molecular matches to clinical trials, enhancing patient access and enrollment [99]. Financial Performance and Business Model - The company has a Remaining Total Contract Value (Remaining TCV) of more than $940.0 million as of December 31, 2024, which includes approximately $300.0 million in potential future contractual opt-ins [92]. - For the year ended December 31, 2024, Net Revenue Retention for the Insights product was approximately 140% compared to the same cohort of customers for the period ended December 31, 2023 [95]. - The company’s business model allows for monetization of de-identified data, enhancing its competitive advantage as the database grows [25]. Regulatory Compliance and Quality Assurance - The FDA regulates the company's diagnostic products and services under the Federal Food, Drug, and Cosmetic Act, which includes extensive requirements for product design, testing, and marketing [173]. - The company has a current CLIA certificate to perform tests at laboratories in Chicago, Atlanta, Raleigh, and Aliso Viejo, subject to biennial inspections [187]. - The company has established a comprehensive quality assurance program to ensure reliable and accurate molecular information [155]. Partnerships and Collaborations - AstraZeneca has committed to spend a minimum of $220 million on products and services under the Master Services Agreement, potentially increasing to $320 million based on stock performance [149]. - GSK has committed to spend a minimum of $180 million under the Strategic Collaboration Agreement, with $70 million paid upon execution [151]. - Recursion Pharmaceuticals will pay an initial license fee of $22 million and an annual license fee totaling up to $160 million under the Master Agreement [152]. Technology and Data Security - The company has developed proprietary software tools that can abstract 50-100 discrete data elements per patient case in approximately one hour [164]. - The security program includes regular audits and maintains ISO 27001 certification to protect sensitive data [166]. - The company maintains significant inventory to avoid work stoppages and has become one of the largest sequencers of cancer patients in the U.S. in a few years [157]. Market Trends and Challenges - The Affordable Care Act (ACA) has significantly impacted healthcare financing and reimbursement, with ongoing efforts to amend or repeal it [210][211]. - The rules and standards used by CMS to determine reimbursement rates are frequently changing, which could materially impact results [217]. - Some large commercial payers have issued non-coverage policies for certain genomic tests, classifying them as experimental [216].

Financial Results - Tempus AI, Inc. reported preliminary financial results for Q4 and full year 2024 on January 13, 2025[4]. - The press release detailing financial results is included as Exhibit 99.1[9]. Company Classification - The company is classified as an emerging growth company under the Securities Act[3]. Investor Relations - The updated corporate presentation is available on the investor relations website for stakeholders[6].

Core Viewpoint - Tempus AI Inc is set to report its fourth-quarter earnings, with Wall Street anticipating a loss of $0.20 per share and revenues of $203.12 million, while the stock has seen significant gains over the past year and year-to-date [1]. Group 1: Earnings Expectations - Wall Street expects Tempus AI to report a loss of 20 cents per share and revenues of $203.12 million [1]. - The stock has increased over 70% in the past year and 101% year-to-date [1]. Group 2: Technical Analysis - The stock is currently priced at $69.85, below its eight-day simple moving average of $78.67, indicating a moderately bearish trend and potential downside risk [2]. - Despite the short-term bearish pressure, the stock remains above its 20-day and 50-day simple moving averages of $68.19 and $50.50, which are bullish indicators suggesting underlying support [3]. - The Moving Average Convergence Divergence (MACD) reading of 7.67 supports a bullish outlook, while the Relative Strength Index (RSI) at 54.48 indicates neutral momentum [3]. Group 3: Analyst Ratings - The consensus analyst rating for Tempus AI stock is currently a Buy, with a price target of $59.60, suggesting a potential upside of 13.5% [5]. - Recent ratings from TD Cowen, Loop Capital, and Needham imply a downside of 13.52% for Tempus AI stock, with an average price target of $60.67 [5].

Group 1 - Tempus AI (NASDAQ: TEM) is a technology company that integrates genomic and clinical information into its AI platform to offer next-generation products, targeting physicians, researchers, and patients as its main clients [1] - The company has made strategic acquisitions, indicating a focus on expanding its capabilities and offerings in the healthcare technology sector [1]

Core Viewpoint - Tempus AI has experienced a significant stock price increase of nearly 99% since the beginning of 2023, but there remains potential for further growth due to strategic acquisitions and strong revenue retention metrics [1][2]. Company Developments - The recent acquisition of Ambry Genetics allows Tempus AI to enhance its cancer screening capabilities and expand into additional healthcare sectors such as pediatrics, reproductive health, and immunology [3]. - In 2023, Tempus AI reported a net revenue retention rate of 125%, indicating strong customer engagement and potential for future growth [4]. Financial Projections - Management forecasts 2024 revenue of $700 million, excluding Ambry's contributions, which would represent a 32% year-over-year sales growth. Additionally, an EBITDA improvement of over $50 million from 2023 is anticipated [5]. Investment Considerations - Despite the stock's high-risk nature, there is still an opportunity for growth investors to consider investing in Tempus AI, although it is advised that only those comfortable with higher risk should proceed [6].

Group 1 - The overall performance of equities in early 2025 has been lackluster, with no significant upward movement observed [1] - The political environment, particularly the new Trump administration, is influencing market dynamics but has not yet led to a rally in US equities [1]