Tempus AI (TEM) stock plummeted more than 15% in pre-market trading on Tuesday, following the company's release of disappointing fourth-quarter and full-year 2024 financial results. Despite solid revenue growth, the precision medicine technology firm's wider-than-expected losses overshadowed its positive outlook for 2025.
For the fourth quarter, Tempus AI reported revenue of $200.7 million, up 35.8% year-over-year, but missed analyst estimates of $203.1 million. The company's adjusted net loss widened to $0.18 per share, missing analyst expectations of a $0.16 loss.
The company's full-year 2024 performance was even more concerning, with a net loss of $705.8 million, significantly wider than the $214.1 million loss in 2023. This was largely due to $547.7 million in stock-based compensation expenses, which overshadowed the 30.4% increase in annual revenue to $693.4 million.
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