Tempus AI (NASDAQ:TEM) wasn’t that remarkable compared to most other AI high-fliers in the past year. The stock was very volatile in the past year and declined significantly in December 2024. TEM stock was down nearly 50% since the start of December to its trough in mid-January.
However, the stock has been recovering sharply in the past two weeks, and it is now up 69.4% in the past month. Here’s what you need to know about this surge:
Tempus AI debuted the Olivia Health App on January 21. It is an AI-driven app that centralizes patient data from 1,000+ sources. Moreover, the FDA cleared Tempus’ xT CDx. This is a 648-gene tumor profiling test. The FDA also cleared its ECG-AF algorithm, which is used for cardiac risk assessment. CMS followed by approving medicare reimbursement for the tool, so patient access has been significantly expanded here. This also means Tempus AI could bring in more sales.
A disclosure on January 14 revealed that Nancy Pelosi purchased 50 call options at a strike price of $20 with a January 2026 expiration. These call options were valued at $50,000 to $100,000. Nancy Pelosi’s returns were 70.9% in 2024, so retail investors are optimistic that Tempus AI could be another winner. Cathie Wood’s Ark Invest also boosted its stake in the company.
Tempus AI posted $200 million in Q4 revenue, up 35% year-over-year. Genomics grew 30%, and data/services segments grew 45%. Full-year 2024 revenue grew 30% year-over-year and reached $693 million. It fell short of guidance by 1%, so investors weren’t that worried, especially since EBITDA margins improved and profitability could be reached by late 2025.
Revenue is projected to cross $1.23 billion and grow at 75% this year. Tempus has been growing through acquisitions too. It is acquiring Ambry Genetics at $600 million this year. $375 million will be in cash and $225 million in equity.
The company is still unprofitable and reported a net loss of $75.84 million in Q4 2024. More dilution could happen before it reaches profitability, especially if it makes more acquisitions with cash.