Tempus Accelerates Growth with Record-Breaking Q4 2024 Results
Tempus, a leading healthcare technology company, has announced its strongest quarterly performance to date. According to Eric Lefkofsky, Founder and CEO of Tempus, the fourth quarter of 2024 saw revenue growth accelerate to 35.8% year-over-year, with gross profit growth reaching an impressive 49.7%. This remarkable growth is a testament to the company's focus on innovation and its commitment to delivering exceptional value to customers.
One of the key drivers behind this success is Tempus' Data and Services business, which has experienced significant growth over the past year. As Eric Lefkofsky highlighted during the conference call, the company's decision to acquire Ambry Genetics in February has given them a strategic advantage, allowing them to expand their operations and improve their overall performance.
The acquisition of Ambry Genetics not only provides Tempus with a West Coast lab, but it also enables the company to bring some of its somatic workflows to this new location. Over time, Tempus plans to have its inherited risk assays run out of their existing labs in Chicago, Raleigh, and Atlanta, while using Ambry's lab for other types of testing.
Other notable highlights from the conference call include an increase in total remaining contract value to $940 million, a 140% net revenue retention rate, and a revised revenue guidance for 2025. Tempus now expects to generate $1.24 billion in revenue, up from its previous estimate of $1.23 billion, with adjusted EBITDA positive at around $5 million.
Jim Rogers, CFO of Tempus, also provided insights into the seasonality of Ambry's business, noting that there will be a mathematical ramp as the company incorporates the new lab and begins to bring its assays in-house.
The acquisition of Ambry Genetics and the extension of Tempus' [indiscernible] agreement for another 5 years have further solidified the company's position in the market. As Eric Lefkofsky emphasized during the conference call, Tempus is now generating the kind of leverage they want to see, with revenues accelerating, gross profit growing quicker, and costs remaining in line.
Tempus' impressive Q4 2024 results demonstrate its commitment to innovation and customer satisfaction. As the company continues to grow and evolve, it will be interesting to see how these developments impact the market and shape the future of healthcare technology."
