Company: TEM
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025603
Chunk: 367

Company: Tempus AI, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 367
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 period in 2023, was primarily due to an increase of $24.0 million in material and service costs, $13.6 million of stock-based compensation expense related to RSUs for which the performance-based vesting condition was satisfied in connection with our IPO, $7.6 million in personnel costs, $4.2 million in royalty licensing fees, and $1.9 million in cloud expenses. 

Cost of Revenues, Data and Services 

The increase in Cost of revenues, Data and services for the year ended December 31, 2024, compared to the same period in 2023, was primarily due to an increase of $8.5 million of stock-based compensation expense related to RSUs for which the performance-based vesting condition was satisfied in connection with our IPO, as well as an increase of $2.3 million in cloud expenses. 

Technology Research and Development 

    Year Ended December 31,

    2024

    2023

    $ Change

    % Change

    (in thousands, except percentages)

    Technology research and development
     
    $
    167,519

    $
    95,155

    $
    72,364

    76
    %

The increase in Technology research and development expenses for the year ended December 31, 2024, compared to the same period in 2023, was primarily due to an increase of $58.5 million of stock-based compensation expenses related to RSUs for which the performance-based vesting condition was satisfied in connection with our IPO, $11.1 million in personnel-related costs associated with the investment in our cloud infrastructure and new lines of business, and $2.7 million in taxes related to the settlement of RSUs. 

Research and Development 

    Year Ended December 31,

    2024

    2023

    $ Change

    % Change

    (in thousands, except percentages)

    Research and development
     
    $
    149,325

    $
    90,343

    $
    58,982

    65
    %

127

The increase in Research and development expenses for the year ended December 31, 2024, compared to the same period in 2023, was primarily due to an increase of $47.6 million of stock-based compensation expenses related to RSUs for which the performance-based vesting condition was satisfied in connection with our IPO, $5.7 million in personnel-related costs