Tempus Ai,Inc.(TEM)

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Tempus Fugit, Investors Regret? Short Seller Targets AI Darling, Warns CEO Is 'Cash Out King' (UPDATED)
Benzinga· 2025-05-29 19:03
Editor’s note: This story has been updated to include a statement from a Tempus AI spokesperson.Spruce Point Capital Management has announced a new short position against Tempus AI Inc. TEM. On Wednesday, the short seller raised concerns about the company’s management team.What To Know: Tempus AI shares are tumbling Wednesday morning. Shortseller Spruce Point targeted the Chicago-based company in a new report titled “The Tempest Surrounding Tempus AI.”The firm blasted Tempus AI founder and CEO Eric Lefkofsk ...
INVESTOR ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of Tempus AI, Inc. – TEM
GlobeNewswire News Room· 2025-05-28 20:52
Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Tempus AI, Inc. following a critical report by Spruce Point Capital Management that raised concerns about the company's accounting practices and executive backgrounds [1][3]. Group 1: Investigation and Legal Actions - Pomerantz LLP is representing investors of Tempus AI, Inc. in an investigation regarding possible securities fraud and other unlawful business practices [1]. - Investors are encouraged to contact Pomerantz LLP for more information about the class action [2]. Group 2: Company Performance and Market Reaction - On May 28, 2025, Spruce Point Capital Management published a report highlighting concerns about Tempus, including aggressive accounting practices and the backgrounds of several board members linked to companies that have restated financial results [3]. - Following the release of the report, Tempus' stock price dropped by $12.67 per share, a decline of 19.23%, closing at $53.20 per share [3].
A Cathie Wood Favorite Is Falling: Why Tempus AI Stock Is Imploding Today
The Motley Fool· 2025-05-28 18:32
Core Viewpoint - Tempus AI's stock has experienced a significant decline of 18.7% following a short report from Spruce Point Capital Management, which claims the stock could have a downside of up to 60% [1] Group 1: Allegations Against Tempus AI - The short report alleges that the leadership of Tempus, particularly founder Eric Lefkofsky, has a history of creating technology companies that make unsubstantiated claims, often exiting these companies early with substantial profits while leaving shareholders with losses [2] - The report accuses Tempus leadership of misleading the public regarding their use of artificial intelligence, stating that only 2% of the company's projected 2024 revenue will come from AI applications, despite the emphasis on AI in their branding and public statements [3] - Additional allegations include accounting irregularities and deteriorating relationships with key customers such as AstraZeneca [5] Group 2: Market Reaction and Analyst Sentiment - The stock's decline occurred while major indices like the S&P 500 and Nasdaq Composite remained mostly flat, indicating a specific issue with Tempus rather than a broader market trend [1] - Despite the potential bias of the short-seller, the report presents convincing arguments, leading to a consensus that Tempus' stock is currently overpriced [5]
Tempus Fugit, Investors Regret? Short Seller Targets AI Darling, Warns CEO Is 'Cash Out King'
Benzinga· 2025-05-28 15:43
Core Viewpoint - Spruce Point Capital Management has initiated a short position against Tempus AI Inc, raising concerns about the company's management and financial practices, suggesting potential significant downside risk for the stock [1][6]. Group 1: Management Concerns - The short seller criticized Tempus AI's founder and CEO Eric Lefkofsky, highlighting a history of promoting technology companies that ultimately disappointed investors, leaving shareholders at a loss [1][2]. - Lefkofsky and his partner Brad Keywell have been linked to previous ventures, such as Groupon and InnerWorkings, which faced significant financial restatements and declines in stock value [3]. Group 2: Financial Practices - Spruce Point raised alarms about "aggressive and suspicious" accounting practices at Tempus AI, including questionable adjusted EBITDA calculations and potential circular cash flows that inflate revenue figures [4]. - The company’s rebranding from Tempus Labs to Tempus AI has not translated into substantial AI-related revenue, with less than 2% of total revenue attributed to AI applications, raising doubts about the authenticity of its AI narrative [5]. Group 3: Stock Performance - Following the short seller's report, Tempus AI shares dropped 16.6% to $54.80, although the stock is still up approximately 62% year-to-date [7]. - Spruce Point warned of a potential downside risk of 50% to 60% for Tempus AI shares, indicating a significant correction may be forthcoming after a rapid rise in stock price earlier in the year [6].
Tempus AI: Firing On All Cylinders
Seeking Alpha· 2025-05-25 16:00
Group 1 - The article discusses the potential for investors to capitalize on undervalued stocks that are mispriced by the market as of the end of May [1] - It suggests that joining a specific investment service, Out Fox The Street, may provide insights on positioning in these stocks [1] Group 2 - There are no specific companies or stocks mentioned in the article, and the author discloses no current positions in any of the companies referenced [2][4] - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3][4]
Tempus AI: I Believe In The Company's Cause
Seeking Alpha· 2025-05-22 19:47
I wanted to have a look at Tempus AI, Inc. ( NASDAQ: TEM ) which has seen some buzz recently, and see how it has performed recently, and what it is that it offers to the worldMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we have no stock, op ...
Tempus: Is This Ultra-Fast-Growing Company A Good Investment?
Seeking Alpha· 2025-05-20 21:55
Group 1 - The Cash Flow Kingdom Income Portfolio aims to achieve an overall yield in the range of 7% - 10% by combining various income streams for a steady payout [1] - Tempus AI, Inc. (NASDAQ: TEM) is identified as a healthcare tech company that has experienced significant growth, including in the most recent quarter, with a positive outlook for the remainder of the year [1] - The Cash Flow Club, where Jonathan Weber is a contributing author, focuses on company cash flows and access to capital, offering features like a personal income portfolio targeting 6%+ yield and coverage of various sectors [1] Group 2 - Jonathan Weber has been active in the stock market and as a freelance analyst for many years, focusing primarily on value and income stocks while occasionally covering growth [2]
After 92% YTD Surge, Is Tempus AI a Buy on Trump's Executive Order?
ZACKS· 2025-05-15 20:01
Core Viewpoint - Tempus AI has shown significant growth and investor interest following its IPO, with a year-to-date stock increase of 91.8%, outperforming the Medical Info Systems industry and the broader market [1][2]. Financial Performance - In Q1 2025, Tempus AI reported a 75.4% year-over-year revenue increase and a 99.8% rise in gross profit [6]. - Genomics revenues grew by 89% year over year, with the core clinical diagnostics business expanding by 31% due to a 20% increase in volume [7]. - The company reported an adjusted EBITDA loss of $16.2 million, an improvement from a $43.9 million loss in the same period last year [8]. Strategic Partnerships and Initiatives - Tempus AI secured a $200 million, three-year deal with AstraZeneca and Pathos to develop a large oncology foundation model, increasing its total remaining contract value to over $1 billion [9]. - The acquisition of Ambry Genetics and the launch of the "olivia" personal health concierge app have enhanced the company's capabilities [10]. Revenue Guidance and Market Outlook - The company raised its full-year 2025 revenue outlook to $1.25 billion, indicating an 80% year-over-year growth, and expects a positive adjusted EBITDA of $5 million for the year [11]. - The recent executive order aimed at reducing U.S. drug prices could benefit Tempus AI by increasing demand for its AI-driven diagnostics and real-world data tools [12]. Valuation and Market Position - Despite recent gains, Tempus AI's stock is still 29.2% below its 52-week high, suggesting potential for further upward movement [13]. - The stock is currently trading at a forward price-to-sales ratio of 8.21, which is above the industry average of 6.0, indicating it may be slightly overvalued [14]. Investment Recommendation - Tempus AI is viewed as a "Hold" for now, with strong long-term potential but facing competition and currently trading at a premium [16].
Tempus Ai,Inc.(TEM) - 2025 Q1 - Earnings Call Transcript
2025-05-06 21:32
Financial Data and Key Metrics Changes - Quarterly revenue increased by 75.4% year over year to $255.7 million [5] - Genomics revenue reached $193.8 million, reflecting approximately 89% year over year growth [5] - Gross profit for the quarter was $155.2 million, representing 99.8% growth year over year [6] - Adjusted EBITDA improved to negative $16.2 million from negative $43.9 million year over year, an improvement of $27.8 million [6] - Full year 2025 revenue guidance increased to $1.25 billion, indicating about 80% year over year growth [7] Business Line Data and Key Metrics Changes - Oncology testing revenue grew by 31% year over year with approximately 20% volume growth [5] - Hereditary testing contributed $63.5 million in revenue, with unit growth of 23% [6] - Revenue from data and services totaled $61.9 million, marking about 43% year over year growth, led by insights or data licensing business which grew by 58% [6] Market Data and Key Metrics Changes - The company reported a total remaining contract value exceeding $1 billion as of April 30 [9] - The insights business is growing rapidly, with a significant contract with AstraZeneca pushing total remaining contract value over $1 billion for the first time [50] Company Strategy and Development Direction - The company is focused on building the world's largest foundation model in oncology through a three-year $200 million data and modeling license agreement with AstraZeneca and Pathos [8][9] - The strategic partnership aims to enhance drug discovery efforts and advance diagnostic and data products [9][10] - The company is committed to making precision medicine a reality by leveraging AI and large datasets to improve patient outcomes [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance, highlighting strong revenue and gross profit growth while managing costs effectively [5][8] - The management noted that the excitement from other pharmaceutical companies regarding the Pathos deal has exceeded expectations, indicating potential for future collaborations [15][16] - The company is cautious about growth rates in the hereditary testing business but sees long-term potential for high growth [24][26] Other Important Information - The company is investing in AI technology and data to enhance its diagnostic capabilities and maintain competitive advantages [39][40] - The acquisition of Deep Six is expected to enhance the company's data connectivity and analytics capabilities [28][32] Q&A Session Summary Question: Follow-up on the Pathos deal and its implications for future collaborations - Management noted significant interest from other pharmaceutical companies following the Pathos deal, with ongoing discussions about similar agreements [15][16] Question: Insights on the Hereditary business performance - Management indicated that the hereditary testing business is performing better than expected, with potential for continued strong growth [24][26] Question: Details on the Deep Six acquisition and its capabilities - The acquisition is aimed at enhancing data connectivity and analytics, which are crucial for building comprehensive molecular datasets [28][32] Question: Impact of macroeconomic factors on TCV and potential cancellations - Management acknowledged some impact on biotech funding but emphasized that relationships with large pharma companies remain strong and committed [70][71] Question: Update on MRD assay performance and expectations - Management reported strong demand for both tumor naive and tumor informed assays, with positive long-term positioning in the MRD space [75][79]
Tempus Ai,Inc.(TEM) - 2025 Q1 - Earnings Call Transcript
2025-05-06 21:32
Financial Data and Key Metrics Changes - Quarterly revenue increased by 75.4% year over year to $255.7 million [5] - Genomics revenue reached $193.8 million, reflecting approximately 89% year over year growth [5] - Gross profit for the quarter was $155.2 million, representing 99.8% growth year over year [6] - Adjusted EBITDA improved to negative $16.2 million from negative $43.9 million year over year, an improvement of $27.8 million [6] - Full year 2025 revenue guidance increased to $1.25 billion, indicating about 80% year over year growth [7] Business Line Data and Key Metrics Changes - Oncology testing revenue grew by 31% year over year with approximately 20% volume growth [5] - Hereditary testing contributed $63.5 million in revenue, with unit growth of 23% [6] - Revenue from data and services totaled $61.9 million, marking about 43% year over year growth, driven by a 58% increase in insights or data licensing business [6] Market Data and Key Metrics Changes - The company reported delivering approximately 158,000 tests in the quarter, with unit growth in the 20% range [48] - The insights business grew by 58%, contributing to the overall data and services business growth of over 40% [50] Company Strategy and Development Direction - The company announced a three-year $200 million data and modeling license agreement with AstraZeneca and Pathos to build a foundation model in oncology [8] - This agreement is expected to enhance the company's capabilities in precision medicine and data-driven diagnostics [10] - The company aims to leverage AI technology to differentiate its diagnostics offerings and improve patient outcomes [53] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for hereditary testing and the potential for significant growth in the future [24] - The company is focused on long-term sustained growth rather than short-term fluctuations, emphasizing the importance of maintaining a steady growth trajectory [48] - Management acknowledged the challenges in the biotech funding environment but noted that relationships with large pharmaceutical companies remain strong and committed [71] Other Important Information - The company is actively investing in AI applications and data infrastructure to enhance its diagnostic capabilities [40] - The acquisition of Deep Six is expected to improve connectivity with high-quality institutions and enhance data analytics capabilities [30] Q&A Session Summary Question: Can you share insights on follow-up conversations with other pharma companies regarding foundational model development? - Management noted significant interest from other pharmaceutical companies following the announcement of the AstraZeneca and Pathos deal, with ongoing discussions about potential collaborations [15][16] Question: Can you clarify the deal structure of the $200 million agreement with Pathos? - Management explained that the $200 million will be recognized ratably over the three-year period, with cash flows between parties not impacting revenue recognition [19][20] Question: What factors contributed to the strong performance of the Hereditary business? - Management highlighted that the hereditary screening market is not in decline as previously thought, and there is a growing audience for genetic testing beyond just cancer risk [24][25] Question: How does the company plan to leverage data and collaborations in the MRD space? - Management emphasized that AI and technology will be key differentiators in diagnostics, enabling more personalized and effective treatment strategies [53][56] Question: What are the expectations for genomic volumes and the Insights business moving forward? - Management expressed confidence in the growth of genomic volumes despite some weather-related disruptions, and noted strong demand for the Insights business with a robust contract backlog [48][50]