Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Tempus soars 15% on the first day of trading, demonstrating investor appetite for a health tech with a promise of AI | TechCrunch

Jun 14, 2024 - techcrunch.com
Tempus, a genomic testing and data analysis company founded by Eric Lefkofsky, debuted on Nasdaq, raising nearly $411 million at a fully-diluted valuation of over $6 billion. The company's IPO was priced at $37 per share, at the top of its $35 to $37 price range. Despite being unprofitable, Tempus managed to shrink its operating losses from 83% in 2022 to 37% in 2023, with revenues of $531 million and a net loss of $290 million in 2023. Lefkofsky expects the company to be cash flow and EBITDA positive by 2025.

Lefkofsky, who holds 30.1% of the company and 65% of shareholder voting power, founded Tempus in 2015 to leverage technology and data from genomic sequencing. The company is now positioning itself as an AI company, despite AI revenue accounting for only 1% of its 2023 revenue. Other significant shareholders include Kimberley Keywell and Scottish asset manager Baillie Gifford. This is the fourth company Lefkofsky has taken public, following Groupon, which now trades at under $600 million from a valuation of nearly $13 billion in 2011.

Key takeaways:

  • Tempus, a genomic testing and data analysis company founded by Eric Lefkosky, debuted on Nasdaq, raising nearly $411 million at a fully-diluted valuation of over $6 billion.
  • The company's last official private valuation was $8.1 billion and it was estimated to be valued at $10.25 billion in late 2022. Despite the discount from its previous valuation, the IPO is considered a success for an unprofitable company.
  • Tempus is trying to position itself as an AI company, with plans to embed AI in every aspect of its diagnostics tools, despite AI revenue only accounting for 1% of its 2023 revenue.
  • Eric Lefkofsky is the largest shareholder in the company, holding 30.1% of the company and 65% of shareholder voting power. Other significant shareholders include the firm controlled by Kimberley Keywell and Scottish asset manager Baillie Gifford.
View Full Article

Comments (0)

Be the first to comment!