Tempus AI, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved net revenue of $180.9 million for Q3 2024, a 33% increase from $136.1 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $492.7 million, up 28% from $384.1 million in the same period last year. The growth was driven by a 20% increase in Genomics revenue, totaling $116.4 million, and a substantial 64% rise in Data and services revenue, which amounted to $64.5 million.
Despite the revenue growth, Tempus reported a net loss of $75.8 million for Q3 2024, compared to a loss of $53.4 million in Q3 2023. The nine-month net loss also widened to $692.8 million from $163.6 million in the prior year. The increase in losses was attributed to rising operational costs, which totaled $234.5 million for Q3 2024, up from $180.8 million in Q3 2023. Notably, stock-based compensation expenses significantly impacted the financials, with $509.4 million recognized for the nine months ended September 30, 2024.
The company’s total assets increased to $971.7 million as of September 30, 2024, up from $564.1 million at the end of 2023, primarily due to the proceeds from its IPO completed in June 2024, which generated net proceeds of $382 million. The IPO involved the issuance of 11.1 million shares at $37.00 per share, converting all outstanding convertible preferred stock into Class A common stock.
Strategically, Tempus has been active in acquisitions, including the purchase of SEngine Precision Medicine LLC for $9.9 million and Mpirik, Inc. for $9.7 million earlier in 2023. On November 4, 2024, the company announced an agreement to acquire Ambry Genetics Corporation for $375 million in cash and stock, with financing secured through a $100 million revolving credit facility and $200 million in term loans.
The company also faced challenges, including increased interest expenses and a significant rise in liabilities, which totaled $918 million as of September 30, 2024, compared to $840.7 million at the end of 2023. The increase in liabilities was driven by a rise in warrant liabilities and operational expenses.
Overall, while Tempus AI, Inc. demonstrated strong revenue growth, it continues to grapple with substantial losses and rising operational costs, necessitating ongoing investments in its technology and product offerings.
About Tempus AI, Inc.
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