Tempus AI Inc. (TEM) shares plunged 12.24% in after-hours trading on Monday following the company's report of wider-than-expected losses for the full year 2024, despite solid revenue growth.

The precision medicine technology company reported fourth-quarter revenue of $200.68 million, up 35.8% year-over-year, but missed analyst estimates of $203.12 million. For the full year 2024, revenue increased 30.4% to $693.4 million.

However, Tempus AI reported a net loss of $705.8 million for the full year 2024, including $547.7 million in stock-based compensation expenses. The adjusted EBITDA loss for 2024 was $104.7 million, an improvement of $49.5 million from the previous year but wider than expected.

In the fourth quarter, Tempus AI's net loss narrowed to $13.0 million from $50.5 million a year earlier, and the adjusted EBITDA loss improved to $7.8 million from $35.1 million in Q4 2023.

On a positive note, Tempus AI closed the acquisition of Ambry Genetics on February 3, 2025, and raised its revenue guidance for the full year 2025 to $1.24 billion, representing approximately 79% annual growth. The company also expects to achieve positive adjusted EBITDA of approximately $5 million in 2025, an improvement of around $110 million over 2024.