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 1.23 billion to 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.(TEM) - 2024 Q4 - Earnings Call Transcript