Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the
adoption of AI to advance precision medicine and patient care,
today reported financial results for the quarter that ended
September 30, 2024. The company also announced that it has entered
into an agreement to acquire Ambry Genetics, a leader in genetic
testing that aims to improve health by understanding the
relationship between genetics and disease.
- Revenue increased 33.0% year-over-year to $180.9 million in the
third quarter of 2024
- Data and services revenue growth accelerated to 64.4%
year-over-year
- Genomics unit growth accelerated to 23.9% annually with rising
average revenue per clinical test
- Net Loss of $(75.8 million), which included $22.2 million of
stock compensation expense and related employer payroll taxes
- Adjusted EBITDA improved $14.4 million year over year to $(21.8
million)
- Expect full year 2024 revenue of ~$700 million, which
represents ~32% annual growth
For additional information on the quarter, including a letter
from our CEO and CFO, please visit our investors relations site at
investors.tempus.com.
“The overall business performed well in the quarter, as
demonstrated by accelerating volume growth in our genomics business
and accelerating revenue growth in our data and services business,
specifically within Insights,” said Eric Lefkofsky, Founder and CEO
of Tempus. “We’re also excited to announce the pending acquisition
of Ambry Genetics, which broadens our testing portfolio, expands
our disease coverage, and enhances the types of products we can
offer to our biotech and pharmaceutical partners. In addition,
Ambry is uniquely positioned given that its revenues are currently
growing at north of 25% a year and it generates meaningful EBITDA
and cash flow.”
Third Quarter 2024 Financial Results
Three Months Ended September
30,
2024
2023
Change
(in thousands, except
percentages)
(unaudited)
GAAP Results
Revenue
$
180,929
$
136,057
33.0
%
Genomics gross margin
48.4
%
51.9
%
NM(1)
Data and services gross margin
76.8
%
60.5
%
NM(1)
Operating expenses
$
159,455
$
118,816
NM(1)
Net loss
$
(75,840
)
$
(53,426
)
NM(1)
Non-GAAP Results
Non-GAAP Genomics gross margin
49.3
%
51.9
%
(260 bps)
Non-GAAP Data and services gross
margin
78.3
%
60.5
%
1780 bps
Non-GAAP Operating Expenses
$
139,284
$
118,816
17.2
%
Adjusted EBITDA
$
(21,843
)
$
(36,206
)
39.7
%
_______________
(1) Not meaningful due to the impact of
including stock compensation expense and related employer payroll
taxes
- Genomics revenue of $116.4 million in the third quarter of
2024, an increase of $19.6 million or 20.3% over the third quarter
of 2023, with 23.9% unit growth.
- Data and services revenue of $64.5 million in the third quarter
of 2024, an increase of $25.3 million or 64.4% over the third
quarter of 2023.
- Non-GAAP Genomics gross margin was 49.3% in the third quarter
of 2024, compared to 51.9% in the third quarter of 2023, largely
related to one-time cash payments in 2023.
- Non-GAAP Data and services gross margin was 78.3% in the third
quarter of 2024, compared to 60.5% in the third quarter of 2023,
led by Insights, or data licensing revenue, which grew 86.6% year
over year.
- Net Loss of $(75.8 million), which included $22.2 million of
stock compensation and related employer payroll taxes compared to
net loss of $(552.2 million) in the second quarter of 2024,
including $493.1 million of stock compensation and related employer
taxes and net loss of $(53.4 million) in the third quarter of
2023.
- Adjusted EBITDA $(21.8 million) in the third quarter of 2024,
compared to $(31.2 million) in the second quarter of 2024, and
$(36.2 million) in the third quarter of 2023.
- Ending cash and marketable securities were $466.3 million.
Additional Operating Highlights
- Announced a multi-year first of its kind collaboration with
BioNTech to leverage Tempus’ TCR dataset in support of BioNTech’s
next-generation oncology pipeline.
- Announced a 3 year extension with Merck EMD at the culmination
of our last 3 year strategic agreement.
- Initiated a collaboration with OneOncology to bring more
biomarker-driven trials to patients in the community setting at
scale.
- Initiated the beta launch of our patient-facing app, Olivia, an
AI-enabled personal health locker that empowers individuals to
holistically organize, store, and manage their own health data
through our generative AI healthcare concierge.
Ambry Genetics Acquisition
Tempus today announced that it has entered into an agreement to
acquire Ambry Genetics, a leader in genetic testing. Under the
terms of the agreement, Tempus will pay $375 million in cash and
$225 million in shares at closing, of which $100 million will be
subject to a lock-up agreement until one year post-transaction
close. The deal is expected to be financed in part through a $300
million increase in short and long term debt provided by Ares,
Tempus’ current lender. Ambry expects to generate >$300 million
in revenue in calendar year 2024 and EBITDA of >$40 million. For
more information on Ambry and its impact, see Tempus’ latest
investor deck.
Ambry is a leader in hereditary cancer screening and currently
serves as Tempus’ main reference lab in this category. The
acquisition will provide Tempus with expanded testing capabilities
for inherited cancer risk. These services are becoming more and
more important for healthcare professionals navigating critical
medical decisions with cancer patients and their relatives.
In addition to expanding and enhancing the company’s hereditary
screening portfolio, the acquisition of Ambry will complement
Tempus’ strategy of using data to advance clinical and scientific
innovation. Ambry’s extensive product offerings will also allow
Tempus to expand into new disease categories, including pediatrics,
rare disease, immunology, women’s reproductive health, and
cardiology.
Financial Outlook and Guidance
Tempus continues to expect full year 2024 revenue of
approximately $700 million, which represents approximately 32%
year-over-year growth and approximately $(105 million) in adjusted
EBITDA, an improvement of approximately $50 million over 2023.
Webcast and Conference Call Information
A conference call and webcast will begin today, November 4, 2024
after market close at 4:30 p.m. Eastern Time. Interested parties
may access details at:
Conference ID: 7177136 Domestic Dial-in Number: (800) 715-9871
International Dial-in Number: (646) 307-1963 Live Webcast:
https://edge.media-server.com/mmc/p/btq3mpjc
The webcast may be accessed on the company’s investor relations
website at investors.tempus.com. For those unable to listen to the
live webcast, a recording will be made available on the company’s
website after the event and will be accessible for one year. Visit
the investor relations website to find the company’s latest deck,
and commentary on the quarter by Eric Lefkofsky, Founder and CEO
and Jim Rogers, CFO, which will be discussed on the conference call
and webcast.
About Tempus
Tempus is a technology company advancing precision medicine
through the practical application of artificial intelligence in
healthcare. With one of the world’s largest libraries of multimodal
data, and an operating system to make that data accessible and
useful, Tempus provides AI-enabled precision medicine solutions to
physicians to deliver personalized patient care and in parallel
facilitates discovery, development and delivery of optimal
therapeutics. The goal is for each patient to benefit from the
treatment of others who came before by providing physicians with
tools that learn as the company gathers more data. For more
information, visit tempus.com.
Non-GAAP Financial Measures
In addition to the financial information presented in this
release in accordance with accounting principles generally accepted
in the United States of America (GAAP), Tempus also presents
adjusted non-GAAP financial measures.
Non-GAAP gross profit is defined as GAAP gross profit,
excluding stock-based compensation expense and employer payroll tax
related to stock-based compensation (collectively, the “stock-based
compensation adjustments”). Non-GAAP gross margin is defined
as gross profit, excluding the stock-based compensation
adjustments, as a percentage of revenue. Non-GAAP operating
expenses are calculated as the sum of technology research and
development expense, research and development expense, and selling,
general and administrative expense, excluding the stock-based
compensation adjustments. Non-GAAP net income (loss) is
defined as net income (loss), adjusted to exclude (i) losses on
equity method investments, (ii) changes in fair value of our
warrant liability, warrant asset, marketable equity securities,
contingent consideration liabilities and indemnity-related holdback
liabilities, (iii) the payment of $2.3 million of our Series G-4
convertible preferred stock in connection with the initial public
offering (the “G-4 Special Payment”), and (iv) amortization of
deferred other income from our IP License Agreement with SB Tempus.
Non-GAAP net income (loss) per share is defined as adjusted
net income (loss) divided by weighted average common shares
outstanding, basic and diluted.
EBITDA is defined as net income (loss), adjusted to
exclude (i) interest income, (ii) interest expense, (iii)
depreciation and amortization, and (iv) provision for (benefit
from) income taxes. Adjusted EBITDA is defined as net income
(loss), adjusted to exclude (i) interest income, (ii) interest
expense, (iii) depreciation and amortization, (iv) provision for
(benefit from) income taxes, (v) losses on equity method
investments, (vi) changes in fair value of our warrant liability,
warrant asset, marketable equity securities, contingent
consideration liabilities and indemnity-related holdback
liabilities, (vii) stock-based compensation expense, (viii)
employer payroll tax related to stock-based compensation expense,
(ix) the G-4 Special Payment, and (x) amortization of deferred
other income from our IP License Agreement with SB Tempus.
Adjusted EBITDA margin is calculated as adjusted EBITDA as a
percentage of revenue.
Tempus believes these non-GAAP financial measures are useful to
investors and others because they allow for additional information
with respect to financial measures used by management in its
financial and operational decision-making and they may be used by
institutional investors and the analyst community to help them
analyze the health of Tempus’ business. In particular, Adjusted
EBITDA is a key measurement used by Tempus management to make
operating decisions, including those related to analyzing operating
expenses, evaluating performance, and performing strategic planning
and annual budgeting. However, there are a number of limitations
related to the use of non-GAAP financial measures, and these
non-GAAP measures should be considered in addition to, not as a
substitute for or in isolation from, our financial results prepared
in accordance with GAAP. Other companies, including companies in
our industry, may calculate these non-GAAP financial measures
differently or not at all, which reduces their usefulness as
comparative measures.
Tempus does not provide guidance for net loss, the most directly
comparable GAAP measure to EBITDA and Adjusted EBITDA, and
similarly cannot provide a reconciliation between Ambry's
forecasted EBITDA and its net income (loss) or between Tempus'
forecasted Adjusted EBITDA and net loss without unreasonable effort
due to the unavailability of reliable estimates for certain
components of net income (loss) and the respective reconciliations.
These forecasted items are not within Tempus’ or Ambry's control,
as applicable, may vary greatly between periods and could
significantly impact future financial results.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended, about Tempus, Ambry and their
respective industries that involve substantial risks and
uncertainties. All statements other than statements of historical
facts contained in this press release are forward-looking
statements, including, but not limited to, Tempus’ expected
financial results for full year 2024 and Ambry's expected financial
results for calendar year 2024; the contributions of Tempus’
research and findings to the larger scientific community, the use
of Tempus’ products and services to advance clinical care for
patients, and the pending acquisition of Ambry. In some cases, you
can identify forward-looking statements because they contain words
such as “anticipate,” “believe,” “contemplate,” “continue,”
“could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,”
“potential,” “predict,” “project,” “should,” “target,” “will,” or
“would” or the negative of these words or other similar terms or
expressions. Tempus cautions you that the foregoing may not include
all of the forward-looking statements made in this press
release.
You should not rely on forward-looking statements as predictions
of future events. Tempus has based the forward-looking statements
contained in this press release primarily on its current
expectations and projections about future events and trends that it
believes may affect Tempus’ business, financial condition, results
of operations and prospects. These forward-looking statements are
subject to risks and uncertainties related to: the intended use of
Tempus’ products and services; Tempus’ financial performance; the
ability to attract and retain customers and partners; managing
Tempus’ growth and future expenses; competition and new market
entrants; compliance with new laws, regulations and executive
actions, including any evolving regulations in the artificial
intelligence space; the ability to maintain, protect and enhance
Tempus’ intellectual property; the ability to attract and retain
qualified team members and key personnel; the ability to repay or
refinance outstanding debt, or to access additional financing;
future acquisitions, divestitures or investments, including our
ability to consummate the acquisition of Ambry Genetics and the
related financing on the terms described herein or at all and, if
consummated, to realize the expected benefits of such acquisition;
the potential adverse impact of climate change, natural disasters,
health epidemics, macroeconomic conditions, and war or other armed
conflict, as well as risks, uncertainties, and other factors
described in the section titled “Risk Factors” in Tempus’ Form 10-Q
for the quarter ended June 30, 2024 filed with the Securities and
Exchange Commission (“SEC”) on August 6, 2024, pursuant to Rule
424(b)(4) under the Securities Act, as well as in other filings
Tempus may make with the SEC in the future, including its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024. In
addition, any forward-looking statements contained in this press
release are based on assumptions that Tempus believes to be
reasonable as of this date. Tempus undertakes no obligation to
update any forward-looking statements to reflect events or
circumstances after the date of this press release or to reflect
new information or the occurrence of unanticipated events, except
as required by law.
Advisors
TD Cowen served as the sole financial advisor representing
Tempus in the purchase of Ambry Genetics. Morgan Stanley, J.P.
Morgan, and Allen & Company LLC represented the company in
security financing.
Tempus AI, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except per
share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net revenue Genomics
$
116,422
$
96,815
$
331,315
$
270,797
Data and services
64,507
39,242
161,403
113,301
Total net revenue
$
180,929
$
136,057
$
492,718
$
384,098
Cost and operating expenses Cost of revenues, genomics
60,126
46,540
181,285
138,781
Cost of revenues, data and services
14,964
15,490
52,384
40,690
Technology research and development
30,680
24,156
135,655
70,485
Research and development
27,348
23,234
119,713
66,268
Selling, general and administrative
101,427
71,426
644,063
211,662
Total cost and operating expenses
234,545
180,846
1,133,100
527,886
Loss from operations
$
(53,616
)
$
(44,789
)
$
(640,382
)
$
(143,788
)
Interest income
4,789
1,483
7,538
5,864
Interest expense
(13,761
)
(12,342
)
(40,294
)
(33,245
)
Other (expense) income, net
(11,522
)
2,287
(17,821
)
7,909
Loss before provision for income taxes
$
(74,110
)
$
(53,361
)
$
(690,959
)
$
(163,260
)
Provision for income taxes
(38
)
(65
)
(144
)
(74
)
Losses from equity method investments
(1,692
)
—
(1,692
)
(301
)
Net Loss
$
(75,840
)
$
(53,426
)
$
(692,795
)
$
(163,635
)
Dividends on Series A, B, B-1, B-2, C, D, E, F, G, G-3, andG-4
preferred shares
—
(11,143
)
(39,347
)
(32,709
)
Cumulative undeclared dividends on Series C preferredshares
—
(764
)
(1,174
)
(2,230
)
Net loss attributable to common shareholders, basic and diluted
(75,840
)
(65,333
)
(733,316
)
(198,574
)
Net loss per share attributable to common shareholders, basicand
diluted
$
(0.46
)
$
(1.03
)
$
(7.04
)
$
(3.14
)
Weighted-average shares outstanding used to compute net lossper
share, basic and diluted
165,612
63,286
104,164
63,267
Comprehensive Loss, net of tax Net loss
$
(75,840
)
$
(53,426
)
$
(692,795
)
$
(163,635
)
Foreign currency translation adjustment
10,302
(54
)
10,203
(29
)
Comprehensive loss
$
(65,538
)
$
(53,480
)
$
(682,592
)
$
(163,664
)
Tempus AI, Inc.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands, except share
and per share amounts)
September 30, 2024
December 31, 2023
Assets Current Assets Cash and cash equivalents
$
388,006
$
165,767
Accounts receivable, net of allowances of $1,154 and $1,115 at
September 30, 2024 and December 31, 2023, respectively
145,616
94,462
Inventory
36,138
28,845
Warrant asset
—
5,070
Prepaid expenses and other current assets
31,335
17,295
Marketable equity securities
78,317
31,807
Deferred offering costs
—
7,085
Total current assets
$
679,412
$
350,331
Property and equipment, net
59,392
61,681
Goodwill
73,365
73,354
Warrant asset, less current portion
—
4,930
Intangible assets, net
14,289
21,916
Investments and other assets
8,692
8,971
Investment in joint venture
103,699
—
Warrant contract asset, less current portion
17,866
21,499
Operating lease right-of-use assets
14,141
20,530
Restricted cash
872
840
Total Assets
$
971,728
$
564,052
Liabilities, Convertible redeemable preferred stock, and
Stockholders' equity (deficit) Current Liabilities Accounts
payable
49,027
54,421
Accrued expenses
101,985
82,517
Deferred revenue
67,604
64,860
Deferred other income
15,955
—
Other current liabilities
9,913
8,213
Operating lease liabilities
5,894
6,437
Accrued data licensing fees
2,242
6,382
Accrued dividends
—
9,797
Total current liabilities
$
252,620
$
232,627
Operating lease liabilities, less current portion
26,664
32,040
Convertible promissory note
174,460
193,124
Warrant liability
76,900
34,500
Other long-term liabilities
15,403
19,751
Interest payable
66,529
55,321
Long-term debt, net
264,527
256,541
Deferred other income, less current portion
27,921
—
Deferred revenue, less current portion
12,976
16,768
Total Liabilities
$
918,000
$
840,672
Commitments and contingencies (Note 8) Convertible
redeemable preferred stock, $0.0001 par value, no and 69,803,765
shares authorized at September 30, 2024 and December 31, 2023,
respectively; no and 63,525,953 shares issued and outstanding at
September 30, 2024 and December 31, 2023, respectively; aggregate
liquidation preference of $0 and $1,130,429 at September 30, 2024
and December 31, 2023, respectively
—
1,105,543
Stockholders' equity (deficit) Class A Voting Common
Stock, $0.0001 par value, 1,000,000,000 and 200,228,024 shares
authorized at September 30, 2024 and December 31, 2023,
respectively; 150,280,363 and 58,367,961 shares issued and
outstanding at September 30, 2024 and December 31, 2023,
respectively
$
15
$
6
Class B Voting Common Stock, $0.0001 par value, 5,500,000 and
5,374,899 shares authorized at September 30, 2024 and December 31,
2023, respectively; 5,043,789 and no shares issued and outstanding
at September 30, 2024 and December 31, 2023, respectively
1
—
Non-voting Common Stock, $0.0001 par value, no and 66,946,627
shares authorized at September 30, 2024 and December 31, 2023,
respectively; no shares issued and outstanding at September 30,
2024, and 5,205,802 shares issued and 5,060,336 shares outstanding
at December 31, 2023
—
0
Treasury Stock, 145,466 shares at September 30, 2024 and December
31, 2023, at cost
(3,602
)
(3,602
)
Additional Paid-In Capital
2,184,926
18,345
Accumulated Other Comprehensive Income
10,208
5
Accumulated deficit
(2,137,820
)
(1,396,917
)
Total Stockholders' equity (deficit)
$
53,728
$
(1,382,163
)
Total Liabilities, Convertible redeemable preferred stock,and
Stockholders' equity (deficit)
$
971,728
$
564,052
Tempus AI, Inc.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except per
share amounts)
Nine Months Ended September
30,
2024
2023
Operating activities Net loss
$
(692,795
)
$
(163,635
)
Adjustments to reconcile net loss to net cash used in operating
activities Change in fair value of warrant liability
$
42,400
$
(8,000
)
Stock-based compensation
509,351
—
Gain on warrant exercise
(173
)
—
Gain on marketable equity securities
(5,119
)
—
Losses from equity method investments
1,692
301
Amortization of original issue discount
1,036
778
Amortization of deferred financing fees
383
382
Change in fair value of contingent consideration
165
(400
)
Amortization of warrant contract asset
3,633
4,961
Depreciation and amortization
27,788
24,509
Provision for bad debt expense
545
1,538
Change in fair value of warrant asset
(18,302
)
—
Amortization of finance right-of-use lease assets
—
283
Non-cash operating lease costs
4,670
5,077
Minimum accretion expense
85
292
Impairment of intangible assets
—
7,359
PIK interest added to principal
6,567
2,123
Change in assets and liabilities Accounts receivable
(51,699
)
(25,365
)
Inventory
(7,293
)
(4,875
)
Prepaid expenses and other current assets
(14,040
)
(3,665
)
Investments and other assets
(410
)
(4,378
)
Accounts payable
(24,776
)
(12,253
)
Deferred revenue
(1,052
)
(16,644
)
Deferred other income
43,876
—
Accrued data licensing fees
(4,250
)
(8,374
)
Accrued expenses & other
23,371
20,749
Interest payable
11,208
11,724
Operating lease liabilities
(6,655
)
(6,559
)
Net cash used in operating activities
$
(149,794
)
$
(174,072
)
Investing activities Purchases of property and
equipment
$
(14,159
)
$
(31,899
)
Proceeds from sale of marketable equity securities
23,098
—
Business combinations, net of cash acquired (Note 4)
—
(2,869
)
Investment in joint venture
(95,186
)
—
Purchases of marketable equity securities
(36,183
)
—
Net cash used in investing activities
$
(122,430
)
$
(34,768
)
Financing activities Proceeds from issuance of common
stock in connection with initial public offering, net of
underwriting discounts and commissions
$
381,951
$
—
Tax withholding related to net share settlement of restricted stock
units
(69,918
)
—
Issuance of Series G-5 Preferred Stock
199,750
—
Principal payments on finance lease liabilities
—
(288
)
Purchase of treasury stock
—
(3,602
)
Payment of deferred offering costs
(8,587
)
(574
)
Dividends paid
(5,625
)
(5,625
)
Proceeds from long-term debt, net of original issue discount
—
48,750
Payment of indemnity holdback related to acquisition
(813
)
—
G-4 Special Payment
(2,250
)
—
Net cash provided by financing activities
$
494,508
$
38,661
Effect of foreign exchange rates on cash
$
(13
)
$
(24
)
Net increase (decrease) in Cash, Cash Equivalents and
Restricted Cash
$
222,271
$
(170,203
)
Cash, cash equivalents and restricted cash, beginning of period
166,607
303,731
Cash, cash equivalents and restricted cash, end of period
$
388,878
$
133,528
Cash, Cash Equivalents and Restricted Cash are Comprised
of: Cash and cash equivalents
$
388,006
$
132,706
Restricted cash and cash equivalents
872
822
Total cash, cash equivalents and restricted cash
$
388,878
$
133,528
Supplemental disclosure of cash flow information Cash
paid during the year for interest
$
20,899
$
12,293
Cash paid for income taxes
$
127
$
101
Supplemental disclosure of noncash investing and
financing activities Dividends payable
$
5,487
$
6,912
Purchases of property and equipment, accrued but not paid
$
6,706
$
5,049
Deferred offering costs, accrued but not yet paid
$
179
$
2,849
Redemption of convertible promissory note
$
18,664
$
22,220
Non-voting common stock issued in connection with business
combinations
$
344
$
4,305
Operating lease liabilities arising from obtaining right-of-use
assets
$
550
$
1,097
Conversion of redeemable convertible preferred stock to common
stock in connection with initial public offering
$
1,348,809
$
—
Taxes related to net share settlement of restricted stock units not
yet paid
$
164
$
—
Reclassificiation of deferred offering costs to additional paid-in
capital upon initial public offering
$
12,347
$
—
Issuance of Series G-3 Preferred Stock
$
3,809
$
2,738
Issuance of Series G-4 Preferred Stock
$
611
$
—
Tempus AI, Inc.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands, except
percentages and per share amounts)
Genomics Gross Profit & Gross
Margin
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Genomics revenue
$
116,422
$
96,815
$
331,315
$
270,797
Cost of revenues, genomics
60,126
46,540
181,285
138,781
Gross profit, genomics
$
56,296
$
50,275
$
150,030
$
132,016
Stock-based compensation expense
1,083
—
12,410
—
Employer payroll tax related to stock-based compensation
26
—
162
—
Non-GAAP gross profit, genomics
$
57,405
$
50,275
$
162,602
$
132,016
Genomics gross margin
48.4
%
51.9
%
45.3
%
48.8
%
Stock-based compensation expense
0.9
%
0.0
%
3.7
%
0.0
%
Employer payroll tax related to stock-based compensation
0.0
%
0.0
%
0.0
%
0.0
%
Non-GAAP gross margin, genomics
49.3
%
51.9
%
49.1
%
48.8
%
Data and Services Gross Profit &
Gross Margin
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Data and services revenue
$
64,507
$
39,242
$
161,403
$
113,301
Cost of revenues, data and services
14,964
15,490
52,384
40,690
Gross profit, data and services
$
49,543
$
23,752
$
109,019
$
72,611
Stock-based compensation expense
916
—
8,145
—
Employer payroll tax related to stock-based compensation
43
—
162
—
Non-GAAP gross profit, data and services
$
50,502
$
23,752
$
117,326
$
72,611
Gross margin, data and services
76.8
%
60.5
%
67.5
%
64.1
%
Stock-based compensation expense
1.4
%
0.0
%
5.0
%
0.0
%
Employer payroll tax related to stock-based compensation
0.1
%
0.0
%
0.1
%
0.0
%
Non-GAAP gross margin, data and services
78.3
%
60.5
%
72.7
%
64.1
%
Total Gross Profit & Gross
Margin
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net revenue
$
180,929
$
136,057
$
492,718
$
384,098
Cost of revenues
75,090
62,030
233,669
179,471
Gross profit
$
105,839
$
74,027
$
259,049
$
204,627
Stock-based compensation expense
1,999
—
20,555
—
Employer payroll tax related to stock-based compensation
69
—
324
—
Non-GAAP gross profit
$
107,907
$
74,027
$
279,928
$
204,627
Gross margin
58.5
%
54.4
%
52.6
%
53.3
%
Stock-based compensation expense
1.1
%
0.0
%
4.2
%
0.0
%
Employer payroll tax related to stock-based compensation
0.0
%
0.0
%
0.1
%
0.0
%
Non-GAAP gross margin
59.6
%
54.4
%
56.8
%
53.3
%
Operating Expenses
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Technology research and development
$
30,680
$
24,156
$
135,655
$
70,485
Stock-based compensation expense
3,929
—
54,363
—
Employer payroll tax related to stock-based compensation
192
—
1,441
—
Non-GAAP technology research and development
$
26,559
$
24,156
$
79,851
$
70,485
Research and development
$
27,348
$
23,234
$
119,713
$
66,268
Stock-based compensation expense
2,554
—
44,787
—
Employer payroll tax related to stock-based compensation
134
—
810
—
Non-GAAP research and development
$
24,660
$
23,234
$
74,116
$
66,268
Selling, general and administrative
$
101,427
$
71,426
$
644,063
$
211,662
Stock-based compensation expense
12,556
—
389,646
—
Employer payroll tax related to stock-based compensation
806
—
3,388
—
Non-GAAP selling, general and administrative
$
88,065
$
71,426
$
251,029
$
211,662
Operating expenses
$
159,455
$
118,816
$
899,431
$
348,415
Stock-based compensation expense
19,039
—
488,796
—
Employer payroll tax related to stock-based compensation
1,132
—
5,639
—
Non-GAAP operating expenses
$
139,284
$
118,816
$
404,996
$
348,415
Earnings per Share
Three Months EndedSeptember 30, 2024 Nine Months
EndedSeptember 30, 2024 Net loss
$
(75,840
)
$
(692,795
)
Fair value changes(1)
15,605
19,885
Stock-based compensation expense
21,038
509,351
Employer payroll tax related to stock-based compensation
1,201
5,963
G-4 Special Payment
—
2,250
Amortization of technology license
(3,989
)
(3,989
)
Non-GAAP net loss
$
(41,985
)
$
(159,335
)
Non-GAAP net loss per share
$
(0.25
)
$
(1.53
)
Weighted average common shares outstanding, basic and diluted
165,612
104,164
(1) Fair value changes include gains and losses related to
quarterly fair value adjustments of our warrant liability, warrant
asset, marketable equity securities, contingent consideration
liabilities, and indemnity-related holdback liabilities.
Adjusted EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net loss
$
(75,840
)
$
(53,426
)
$
(692,795
)
$
(163,635
)
Interest income
(4,789
)
(1,483
)
(7,538
)
(5,864
)
Interest expense
13,761
12,342
40,294
33,245
Depreciation
6,788
5,404
19,472
15,658
Amortization
2,652
2,920
8,316
8,851
Provision for income taxes
38
65
144
74
EBITDA
$
(57,390
)
$
(34,178
)
$
(632,107
)
$
(111,671
)
Losses on equity method investments
1,692
—
1,692
301
Fair value changes(1)
15,605
(2,028
)
19,885
(7,728
)
Stock-based compensation expense
21,038
—
509,351
—
Employer payroll tax related to stock-based compensation
1,201
—
5,963
—
G-4 Special Payment
—
—
2,250
—
Amortization of technology license
(3,989
)
—
(3,989
)
—
Adjusted EBITDA
$
(21,843
)
$
(36,206
)
$
(96,955
)
$
(119,098
)
(1) Fair value changes include gains and losses related to
quarterly fair value adjustments of our warrant liability, warrant
asset, marketable equity securities, contingent consideration
liabilities, and indemnity-related holdback liabilities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241104746136/en/
Tempus Communications Erin Carron media@tempus.com
Tempus Investor Relations Elizabeth Krutoholow
Elizabeth.krutoholow@tempus.com
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