Tempus Reports Third Quarter 2024 Results and Agreement to Acquire Ambry Genetics
Tempus reported Q3 2024 financial results and announced the acquisition of Ambry Genetics for $600M ($375M cash, $225M shares). Revenue grew 33% YoY to $180.9M, with data services revenue up 64.4% and genomics unit growth of 23.9%. The company posted a net loss of $(75.8M), including $22.2M in stock compensation. Ambry Genetics is expected to generate >$300M revenue and >$40M EBITDA in 2024. The acquisition expands Tempus' testing capabilities in hereditary cancer screening and new disease categories. Full-year 2024 guidance maintains at ~$700M revenue.
Tempus ha riportato i risultati finanziari del terzo trimestre del 2024 e ha annunciato l'acquisizione di Ambry Genetics per 600 milioni di dollari (375 milioni in contante, 225 milioni in azioni). I ricavi sono cresciuti del 33% su base annua, raggiungendo 180,9 milioni di dollari, con i ricavi dei servizi dati aumentati del 64,4% e una crescita dell'unità genomica del 23,9%. L'azienda ha registrato una perdita netta di 75,8 milioni di dollari, inclusi 22,2 milioni di dollari in compensi azionari. Si prevede che Ambry Genetics generi oltre 300 milioni di dollari di ricavi e oltre 40 milioni di dollari di EBITDA nel 2024. L'acquisizione espande le capacità di test di Tempus nel monitoraggio del cancro ereditario e in nuove categorie di malattie. La previsione per l'intero anno 2024 rimane a circa 700 milioni di dollari di ricavi.
Tempus informó los resultados financieros del tercer trimestre de 2024 y anunció la adquisición de Ambry Genetics por 600 millones de dólares (375 millones en efectivo, 225 millones en acciones). Los ingresos crecieron un 33% interanual hasta alcanzar los 180.9 millones de dólares, con ingresos por servicios de datos en aumento del 64.4% y un crecimiento en la unidad de genómica del 23.9%. La empresa reportó una pérdida neta de 75.8 millones de dólares, incluidos 22.2 millones en compensaciones en acciones. Se espera que Ambry Genetics genere más de 300 millones de dólares en ingresos y más de 40 millones de dólares en EBITDA en 2024. La adquisición amplía las capacidades de pruebas de Tempus en el cribado de cáncer hereditario y nuevas categorías de enfermedades. La guía de ingresos para todo el año 2024 se mantiene en aproximadamente 700 millones de dólares.
템퍼스는 2024년 3분기 재무 결과를 발표하고 앰브리 유전학을 6억 달러(현금 3억 7500만 달러, 주식 2억 2500만 달러)에 인수했다고 발표했습니다. 매출은 전년 대비 33% 증가하여 1억 8090만 달러에 도달했으며, 데이터 서비스 매출은 64.4% 증가하고 유전체 부문은 23.9% 성장했습니다. 회사는 주식 보상으로 2220만 달러를 포함한 7580만 달러의 순손실을 기록했습니다. 앰브리 유전학은 2024년 3억 달러 이상의 매출과 4천만 달러 이상의 EBITDA를 생성할 것으로 예상됩니다. 이번 인수는 유전성 암 검사와 새로운 질병 범주에서 템퍼스의 테스트 능력을 확장합니다. 2024년 연간 가이던스는 약 7억 달러 매출을 유지합니다.
Tempus a publié les résultats financiers du troisième trimestre 2024 et a annoncé l'acquisition de Ambry Genetics pour 600 millions de dollars (375 millions en espèces, 225 millions en actions). Le chiffre d'affaires a augmenté de 33 % d'une année sur l'autre pour atteindre 180,9 millions de dollars, avec un chiffre d'affaires des services de données en hausse de 64,4 % et une croissance de l'unité de génomique de 23,9 %. L'entreprise a affiché une perte nette de 75,8 millions de dollars, y compris 22,2 millions de dollars en compensation d'actions. On s'attend à ce que Ambry Genetics génère plus de 300 millions de dollars de revenus et plus de 40 millions de dollars d'EBITDA en 2024. L'acquisition élargit les capacités de test de Tempus dans le dépistage du cancer héréditaire et de nouvelles catégories de maladies. Les prévisions pour l'année entière 2024 restent autour de 700 millions de dollars de revenus.
Tempus hat die Finanzergebnisse des dritten Quartals 2024 veröffentlicht und die Übernahme von Ambry Genetics für 600 Millionen US-Dollar (375 Millionen in bar, 225 Millionen in Aktien) angekündigt. Die Einnahmen stiegen im Jahresvergleich um 33 % auf 180,9 Millionen US-Dollar, wobei die Einnahmen aus Datendiensten um 64,4 % und das Wachstum der Genomik-Einheit um 23,9 % zunahmen. Das Unternehmen verzeichnete einen Nettoverlust von 75,8 Millionen US-Dollar, einschließlich 22,2 Millionen US-Dollar in Aktienvergütungen. Ambry Genetics wird voraussichtlich im Jahr 2024 über 300 Millionen US-Dollar Umsatz und über 40 Millionen US-Dollar EBITDA generieren. Die Übernahme erweitert die Testfähigkeiten von Tempus im Bereich der erblichen Krebsvorsorge und in neuen Krankheitskategorien. Die Prognose für das Gesamtjahr 2024 bleibt bei etwa 700 Millionen US-Dollar Umsatz.
- Revenue increased 33% YoY to $180.9M
- Data services revenue growth accelerated to 64.4% YoY
- Genomics unit growth accelerated to 23.9%
- Adjusted EBITDA improved by $14.4M YoY
- Ambry acquisition brings >$40M EBITDA contribution
- Data services gross margin improved to 78.3% from 60.5%
- Net loss increased to $(75.8M) from $(53.4M) YoY
- Genomics gross margin declined to 49.3% from 51.9%
- $300M increase in debt to finance Ambry acquisition
- Operating expenses increased by 17.2% YoY
Insights
Tempus delivered strong Q3 results with
- Data services revenue surge of
64.4% YoY to$64.5M - Genomics unit growth acceleration to
23.9% - Improved Adjusted EBITDA loss of
$(21.8M) , up$14.4M YoY
While still operating at a loss, the Ambry acquisition brings
The Ambry Genetics acquisition significantly expands Tempus' diagnostic capabilities beyond oncology into pediatrics, rare diseases, immunology, women's health and cardiology. This strategic move strengthens their position in precision medicine by:
- Enhancing hereditary cancer screening capabilities
- Broadening disease coverage for clinical research
- Expanding biomarker-driven trial opportunities
The BioNTech collaboration leveraging TCR datasets and OneOncology partnership demonstrate growing industry recognition. The beta launch of Olivia, their AI health concierge, shows commitment to patient-centric data management, potentially creating new revenue streams in consumer healthcare.
-
Revenue increased
33.0% year-over-year to$180.9 million -
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 )$22.2 million -
Adjusted EBITDA improved
$14.4 million $(21.8 million ) -
Expect full year 2024 revenue of
~ , which represents ~$700 million 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
Third Quarter 2024 Financial Results
|
|
Three Months Ended September 30, |
|
|
|
|
||||||
|
|
2024 |
|
|
2023 |
|
|
Change |
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|||
|
|
(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 $19.6 million 20.3% over the third quarter of 2023, with23.9% unit growth. -
Data and services revenue of
$64.5 million $25.3 million 64.4% over the third quarter of 2023. -
Non-GAAP Genomics gross margin was
49.3% in the third quarter of 2024, compared to51.9% 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 to60.5% in the third quarter of 2023, led by Insights, or data licensing revenue, which grew86.6% year over year. -
Net Loss of
$(75.8 million )$22.2 million $(552.2 million )$493.1 million $(53.4 million ) -
Adjusted EBITDA
$(21.8 million )$(31.2 million )$(36.2 million ) -
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
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
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
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
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. |
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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, and G-4 preferred shares |
|
— |
|
|
(11,143 |
) |
|
(39,347 |
) |
|
(32,709 |
) |
||||
| Cumulative undeclared dividends on Series C preferred shares |
|
— |
|
|
(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, basic and diluted |
$ |
(0.46 |
) |
$ |
(1.03 |
) |
$ |
(7.04 |
) |
$ |
(3.14 |
) |
||||
| Weighted-average shares outstanding used to compute net loss per 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,
|
|
December 31,
|
||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ |
388,006 |
|
$ |
165,767 |
|
||
| Accounts receivable, net of allowances of |
|
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, |
|
— |
|
|
1,105,543 |
|
||
| Stockholders' equity (deficit) | ||||||||
| Class A Voting Common Stock, |
$ |
15 |
|
$ |
6 |
|
||
| Class B Voting Common Stock, |
|
1 |
|
|
— |
|
||
| Non-voting Common Stock, |
|
— |
|
|
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 Ended September 30, 2024 |
Nine Months Ended September 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
Source: Tempus AI, Inc.
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