Tempus Reports Third Quarter 2024 Results and Agreement to Acquire Ambry Genetics
-
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
Third Quarter 2024 Financial Results
|
|
|
Three Months Ended |
|
|
|
|
||||||
|
|
|
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
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,
Conference ID: 7177136
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
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
Advisors
|
|
||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
(in thousands, except per share amounts) |
||||||||||||||||
|
|
||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
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 |
) |
||||
|
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(Unaudited) |
||||||||
|
(in thousands, except share and per share amounts) |
||||||||
|
|
||||||||
|
|
|
|
|
|
||||
| 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 |
|
||
|
|
|
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 |
|
(3,602 |
) |
|
(3,602 |
) |
||
|
|
|
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 |
|
||
|
|
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(Unaudited) |
|||||||
|
(in thousands, except per share amounts) |
|||||||
|
|
|||||||
|
|
Nine Months Ended |
||||||
|
|
|
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 |
|
$ |
— |
|
|
|
|
||||||||||||||||
|
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 |
|
Nine Months Ended |
||||||||||||||
|
|
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 |
|
Nine Months Ended |
||||||||||||||
|
|
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 |
|
Nine Months Ended |
||||||||||||||
|
|
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 |
|
Nine Months Ended |
||||||||||
|
|
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 |
Nine Months Ended |
|||||||
| 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 |
|
Nine Months Ended |
||||||||||||||
|
|
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/
media@tempus.com
Tempus Investor Relations
Elizabeth.krutoholow@tempus.com
Source:
