Industry Investment Rating - The industry investment rating is "Outperform" and is maintained [1] Core Insights - The report highlights the strong growth potential in the AI-assisted precision medicine sector, particularly through companies like Tempus AI, which is expected to achieve significant revenue growth and profitability by 2025 [4][6][58] - The report emphasizes the competitive advantages of Tempus AI, including its extensive proprietary data set and partnerships with major pharmaceutical companies, which are expected to drive future growth [20][54][64] Summary by Sections Industry Overview - The closing index level is 5480.49, with a 52-week high of 5841.52 and a low of 3963.29 [1] Tempus AI Performance - Tempus AI's revenue for 2024 is projected at $693 million, reflecting a year-over-year increase of 30.38%, with a Non-GAAP gross margin of 58.3% [4][25] - The company expects to achieve an adjusted EBITDA of $5 million in 2025, marking its first positive EBITDA [58] Investment Logic - Short-term: The gene testing business is expected to benefit from increased penetration of xT CDs, leading to higher average selling prices (ASP) and gross margins [5] - Long-term: The data business has a strong moat and high customer retention, with a net retention rate of 140% [5][64] Valuation Status - Tempus AI holds a leading position in the precision medicine and real-world data (RWD) sectors, with a market capitalization of $15.91 billion and a forward price-to-sales ratio of 12.63 for 2025 [6] Domestic Market Developments - Companies like RunDa Medical and JiaHe MeiKang are actively developing AI-driven healthcare solutions, indicating a growing trend in the domestic AI healthcare market [7][8] Investment Recommendations - The report suggests focusing on companies such as RunDa Medical, JiaHe MeiKang, WeiNing Health, and others as potential investment opportunities in the AI healthcare sector [10]

Acquisitions and Growth Strategy - Tempus AI, Inc. announced the acquisition of Paige for $81.25 million, which includes nearly 7 million digitized pathology slide images and FDA-cleared AI tools, enhancing its digital pathology capabilities [1][8] - In March, Tempus acquired Deep 6 AI, expanding its access to medical records from over 30 million patients across 750 healthcare providers, thereby enhancing its healthcare platforms [2][8] - Earlier this year, Tempus completed the acquisition of Ambry Genetics for $375 million in cash and $225 million in stock, broadening its healthcare offerings into areas such as pediatrics, women's health, and rare diseases [3][8] Industry Position and Performance - Year to date, Tempus AI shares have surged 121.3%, significantly outperforming the industry growth of 27% and the S&P 500's 9.8% improvement [6] - Tempus AI currently trades at a forward 12-month Price-to-Sales (P/S) ratio of 9.04X, compared to the industry average of 5.90X, indicating a relatively expensive valuation [9] Financial Estimates - In the past 30 days, Tempus AI's loss per share estimate for 2025 has decreased by 3%, reflecting a slight adjustment in financial expectations [10] - Current loss per share estimates for the upcoming quarters and years are projected at -0.16 for the current quarter and -0.69 for the current year [11]

Core Insights - Tempus AI, Inc. (TEM) is rapidly expanding its partnerships in oncology and neuroscience, utilizing its AI platforms, Lens and Next, to enhance precision medicine [1] Partnerships and Collaborations - Tempus has initiated a multi-year collaboration with The Abrams Research Center at Northwestern University to utilize its AI-powered Lens platform for genomic data analysis in Alzheimer's research [2] - In February, Tempus partnered with the Institute for Follicular Lymphoma Innovation to create a deidentified data library in Lens, aimed at accelerating treatment development for follicular lymphoma [2] - In May, Tempus formed a strategic collaboration with Boehringer Ingelheim to advance cancer pipeline research, building on previous joint efforts [3] - Earlier this year, Tempus and Stemline Therapeutics announced a collaboration to enhance oncology treatments using the AI-enabled Next platform [3] - In January, Tempus partnered with Genialis to leverage its multimodal dataset for developing new RNA-based algorithms across various cancer types [4] Industry Comparisons - Sophia Genetics expanded its partnership with AstraZeneca to utilize its AI Factories for breast cancer therapy research, while also collaborating with Result Laboratorium for pharmacogenomics insights [5] - AbbVie announced collaborations with ADARx Pharmaceuticals and Gubra A/S to develop therapeutics across multiple disease areas, including oncology [6] Stock Performance - Over the past year, Tempus AI shares have increased by 35.9%, outperforming the industry growth of 21.4% and the S&P 500's 15.9% improvement [7] Valuation Metrics - Tempus currently trades at a forward 12-month Price-to-Sales (P/S) ratio of 9.38, significantly higher than the industry average of 5.87 [10] Earnings Estimates - Recent estimates for Tempus AI's loss per share have shown mixed movements for 2025 and 2026, with current estimates at -0.16 for Q3 2025 and -0.70 for the current year [11][12]

Financial Data and Key Metrics Changes - Weekly active users grew 6% year over year to 46.1 million [6][27] - Revenue rose 2% year over year to $54 million [7][31] - Q1 net loss was $22 million, representing a negative 41% margin, which is a 13 percentage point year over year margin improvement [34] - Q1 adjusted EBITDA loss was $9 million, or a negative 17% margin, representing nine percentage points of year over year improvement [34] Business Line Data and Key Metrics Changes - Platform Wow, which includes users engaging directly on the Nextdoor app or website, grew 5% year over year to 22.5 million [28][30] - Self-serve ad adoption rose, accounting for over 60% of revenue in Q1 [33] Market Data and Key Metrics Changes - Large advertisers reduced their spend year over year due to shifting budgets towards programmatic ad buying [32] - Other revenue channels delivered double-digit year over year growth in Q1 [33] Company Strategy and Development Direction - The company is focused on the rollout of the NeXT initiative, which aims to enhance user engagement and monetization through improved product offerings [8][25] - The strategy includes a shift towards more engaging content and a better user experience, aligning with consumer expectations [30][81] - The introduction of AI-driven features is expected to enhance local commerce and user interactions [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of NeXT to deepen engagement and drive increased monetization [23] - The company anticipates that the financial impact will follow product milestones, with a full launch expected by July [24][38] - Management expects Q2 revenue of approximately $60 million and an adjusted EBITDA loss of around $10 million [38] Other Important Information - The company ended the quarter with $418 million in cash and zero debt [35] - The focus on cost management and cash flow conversion has led to positive operating cash flow [34] Q&A Session Summary Question: Duration of NeXT initiatives impacting user growth and monetization - Management indicated that usage growth and engagement will precede monetization growth, with a clearer picture expected by the next earnings call [41][43] Question: Monetization strategy in a post-NeXT world - Management discussed three ways to enhance monetization: increased engagement leading to more supply, new advertising surfaces, and AI-driven solutions for local needs [49][51][53] Question: Hyperlocal alert strategy and its impact on usage - Management explained that the new alert system will provide more relevant notifications, which is expected to enhance user engagement [60][62][64] Question: Awareness of new UI and marketing costs - Management plans to utilize existing user communication channels and earned media rather than a large marketing expense to drive awareness of the new features [77][80] Question: New disclosures around user metrics - Management clarified that the new disclosures align with consumer expectations and focus on in-app experiences, which are where monetization will occur [81][82]

Table of Contents As filed with the Securities and Exchange Commission on June 5, 2024 Registration No. 333-279558 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Amendment No. 1 to FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Tempus AI, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 7370 47-4903308 (Primary Standard Industrial Classification Code Number) 600 West Chicago Avenue, ...