TempusAI (TEM, Financial) has seen a decline in its stock value, dropping by $1.76 or approximately 3%, bringing the price to $64.11 during pre-market trading. This movement highlights the market's reaction to the company’s current positioning and external factors influencing investor sentiment.
TEM Key Business Developments
Release Date: May 06, 2025
- Quarterly Revenue: Increased 75.4% year-over-year to $255.7 million.
- Genomics Revenue: $193.8 million, representing 89% year-over-year growth.
- Oncology Testing Growth: 31% year-over-year with approximately 20% volume growth.
- Hereditary Testing Revenue: $63.5 million, with unit growth of 23%.
- Data and Services Revenue: $61.9 million, a 43% year-over-year increase.
- Gross Profit: $155.2 million, a 99.8% year-over-year growth.
- Adjusted EBITDA: Negative $16.2 million, improved by $27.8 million year-over-year.
- Full Year 2025 Revenue Guidance: Increased to $1.25 billion, representing about 80% year-over-year growth.
- Data and Modeling License Agreement: 3-year $200 million agreement with AstraZeneca and Pathos.
- Total Remaining Contract Value: Greater than $1 billion as of April 30.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quarterly revenue increased by 75.4% year-over-year to $255.7 million, showcasing strong financial performance.
- Genomics revenue saw an impressive 89% year-over-year growth, contributing significantly to overall revenue.
- The company announced a 3-year $200 million data and modeling license agreement with AstraZeneca and Pathos, enhancing its strategic partnerships.
- Adjusted EBITDA improved significantly, reducing the loss from $43.9 million in Q1 2024 to $16.2 million in Q1 2025.
- Tempus AI Inc (TEM, Financial) raised its full-year 2025 revenue guidance to $1.25 billion, indicating confidence in continued growth.
Negative Points
- Despite revenue growth, the company reported a negative adjusted EBITDA of $16.2 million, indicating ongoing financial challenges.
- The cost of compute for the new data model is significant, although partially covered by partners.
- The MRD (Minimal Residual Disease) tests are not yet reimbursed by MolDx, leading to metered volumes and potential revenue limitations.
- There is a risk of over-reliance on large pharma contracts, which could be impacted by broader economic conditions.
- The hereditary testing business, while performing well, is still subject to market perceptions of commoditization and long-term growth uncertainty.
