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Highlights

  • Tempus’ Q3FY24 revenue reached USD 180.93 million, up 32.98% from Q3FY23
  • Despite revenue growth, Tempus posted a net loss of USD 75.84 million for Q3FY24
  • Operating cash flow improved in Q3FY24, reducing losses due to favorable working capital changes
  • Tempus secured in-network provider agreements with BCBS, expanding its reach in Eastern U.S. markets

Tempus AI, Inc. (NASDAQ:TEM) is a technology company offering next-generation diagnostics across various diseases. It leverages data analytics, genomics, and artificial intelligence (AI) to personalize medicine and enhance treatment outcomes.

For the third quarter of the financial year 2024 (Q3FY24), Tempus’ total net revenue reached USD180.93 million, reflecting a 32.98% increase compared to Q3FY23, which was USD136.06 million. This growth was driven by a 20.3% rise in genomics revenue, and a 23.9% increase in unit growth. Additionally, revenue from data and services surged by 64.4% during the reported period.

Despite the revenue increase, the company posted a net loss of USD75.84 million for Q3FY24, worsening from a loss of USD53.42 million in the same quarter of the previous year. This was attributed to higher total costs and operating expenses, although partly mitigated by the rise in revenue. Operating cash flow showed an improvement in Q3FY24, with a loss of USD149.79 million, an improvement from the previous year's loss of USD174.07 million, due to the favorable impact of changes in working capital. In 3QFY24, the net cash position saw a notable increase of 134.06%, rising from USD165.77 million in Q3FY23 to USD388.00 million, primarily due to strong cash inflows from operating activities.

Recent Business Update

Company outlook

Tempus anticipates full-year 2024 revenue to reach approximately USD 700 million, reflecting a YoY growth of approximately 32%. The company also projects an adjusted EBITDA of approximately USD (105) million, marking an improvement of roughly USD 50 million compared to 2023.

Top 10 shareholders

The top 10 shareholders hold approximately 72.05% of the company's shares, indicating concentrated ownership. Blue Media, LLC, and BK TL21 LLC are the largest shareholders, with stakes of around 18.12% and 10.87%, respectively.

 Stock Performance

Over the past three months, the stock has declined by 18.84%, but it has posted a positive return of 13.10% over the last six months. Currently, the stock is nearing the lower end of its 52-week range, with a high of USD 79.49 and a low of USD 22.89.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 07, 2025. The reference data in this report has been partly sourced from EODHD/Others.