Tempus AI(TEM) to conduct in-depth analysis 2024Q3 financial results

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Tempus AI (Tempus AI) announced that for the third quarter of 2024 (ended September 30), revenues were $180.929 million, a 33% increase over the same period last year. The company’s genomics and data services divisions showed particularly strong growth, with revenues of $1,164.22 million and $644.57 million, respectively; total revenues for the nine-month period reached $492.72 million, up from $384.1 million in the same period last year.

Meanwhile, net loss increased to $75.84 million, up from $53.42 million in the same period last year. Adjusted EBITDA was -$21.8 million, an improvement from -$36.2 million in the same period last year, but still in the red.

On the financial side, the company has $388.9 million in cash and cash equivalents and has more than 12 months of working capital. However, the company is expected to remain in the red due to increased expenses associated with ongoing R&D investments and new business expansion. Cash and cash equivalents increased to $388.0 million. The increase from $166.6 million at the end of the previous year was due to proceeds from the IPO and the issuance of Series G-5 preferred stock. Long-term debt was $264.53 million, up slightly from $256.54 million at the end of the previous year.

Tempus’ Joint Venture with Softbank Group

In July 2024, Tempus AI and SoftBank Group jointly established SB Tempus Corp. The two companies will each invest approximately $95.2 million to expand their business in the Japanese market; SB Tempus plans to develop its clinical sequencing and real-world data business in Japan. In addition, SB Tempus is expanding strategic collaborations with AstraZeneca, GlaxoSmithKline (GSK), and Recursion Pharmaceuticals. The company has signed a master services agreement with AstraZeneca and a strategic cooperation agreement with GSK. The company has also signed a data license agreement with Recursion Pharmaceuticals and is pursuing joint development utilizing the technological capabilities of both parties.

Market risks include the impact of interest rate fluctuations and exchange rate fluctuations, and these risks may increase, especially as the company expands internationally. Fluctuations in medical insurance payment rates and regulatory changes are also considered factors that could affect the company’s performance.

Source：finviz

Acquisition of Ambry Genetics, Inc.

On November 4, 2024, Tempus AI entered into a securities purchase agreement to acquire all shares of Ambry Genetics. The total purchase price consists of $375 million in cash and 4,843,136 shares of Class A common stock. The acquisition will bring Ambry Genetics, a leader in genetic testing, into the company’s fold and strengthen its capabilities in the field of genomics. The acquisition is expected to close in the first quarter of 2025, pending necessary regulatory approvals. To finance the acquisition, Tempus AI has entered into a letter of commitment with Ares Capital Corporation to provide a $100 million revolving credit facility and an additional $200 million term loan. This will fund the cash portion of the acquisition.

Eric Lefkofsky, CEO of Tempus AI, said, “Our mission is to leverage AI and machine learning to improve the quality of healthcare. The acquisition of Ambry Genetics will dramatically improve our genetic testing capabilities and have a significant impact on patient care.”

The company will continue to focus on providing data-driven healthcare solutions to increase revenue and reduce losses. The company intends to strengthen its market position and increase shareholder value through new strategic partnerships and acquisitions.