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Google-backed Tempus AI closes first day of trading up 9% in Nasdaq stock market debut

Jun 14, 2024 - cnbc.com
Tempus AI, a healthcare diagnostics company that uses AI to interpret medical tests, saw its shares rise by up to 15% in its Nasdaq debut, after going public under the ticker symbol "TEM." The company priced 11.1 million shares at $37 each, raising $410 million at a valuation of over $6 billion. The company's early gains took its valuation to as high as $7 billion, but it closed its first day of trading up nearly 9%, for a market cap of roughly $6.65 billion.

Tempus AI believes that AI can help guide therapy selection and treatment decisions, in conjunction with the patient's doctor. The company generated total revenue of $531.8 million in 2023 and a net loss of $214.1 million. CEO Eric Lefkofsky expects the company to be both cash flow and EBITDA positive within the next year. The company is applying AI and data analysis to build a more informed medical profession, with a focus on oncology and personalized treatment based on understanding tumors at the molecular level.

Key takeaways:

  • Tempus AI, a health-care diagnostics company, went public under the ticker symbol 'TEM' on the Nasdaq Stock Market, with shares rising by as much as 15% on its debut.
  • The company priced 11.1 million shares at $37 each, raising $410 million at an implied valuation of over $6 billion. It closed its first day of trading with a market cap of approximately $6.65 billion.
  • Tempus AI uses artificial intelligence to interpret medical tests, aiming to help physicians provide more accurate treatment for their patients. The company generated a total revenue of $531.8 million in 2023 with a net loss of $214.1 million.
  • CEO Eric Lefkofsky expects the company to be both cash flow and EBITDA positive within the next year. The company's investors include Google, Baillie Gifford, Franklin Templeton, NEA and T. Rowe Price.
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