Tempus AI reports 84% revenue growth amid market volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 14 2024
0mins
Should l Buy TEM?
Source: Coinmarketcap
Tempus AI Inc. shares fell 5.13% and hit a 5-day low amid broader market declines, with the Nasdaq-100 down 1.02% and the S&P 500 down 0.45%.
Despite the stock's decline, Tempus AI reported an impressive 84% revenue growth over the past nine months, establishing connections with 65% of U.S. academic medical centers and 55% of oncologists, highlighting its significant impact in the healthcare AI sector. Cathie Wood's decision to increase her stake in Tempus AI reflects confidence in the company's long-term potential amid ongoing market volatility.
The strong revenue growth and strategic partnerships position Tempus AI favorably in the healthcare AI market, suggesting resilience despite current market challenges.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TEM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TEM
Wall Street analysts forecast TEM stock price to rise
9 Analyst Rating
4 Buy
5 Hold
0 Sell
Moderate Buy
Current: 56.160
Low
76.00
Averages
84.38
High
105.00
Current: 56.160
Low
76.00
Averages
84.38
High
105.00
About TEM
Tempus AI, Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. It offers AI-enabled precision medicine solutions to physicians to deliver personalized patient care and, in parallel, facilitates discovery, development and delivery of optimal therapeutics. It provides three product lines: Genomics, Data and artificial intelligence applications (AI). The Genomics product line leverages its laboratories to provide next generation sequencing (NGS) diagnostics, polymerase chain reaction, profiling, molecular genotyping and other anatomic and molecular pathology testing. The data generated in its lab or ingested into its platform is structured and de-identified, prior to commercialization. Its AI Applications is focused on developing and providing diagnostics that are algorithmic in nature, implementing new software as a medical device, and building and deploying clinical decision support tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tempus AI Shares Rise on New Algorithm and Analyst Upgrade
- Analyst Upgrade: Mizuho initiated coverage on Tempus AI with an Outperform rating and a price target of $100, reflecting confidence in the company's growth potential and likely attracting more investor interest.
- New Algorithm Launch: Tempus introduced the HRD-RNA algorithm, an AI-driven tool that identifies patients suitable for platinum-based chemotherapy or PARP inhibitors by analyzing gene expression, which is expected to enhance clinical outcomes and strengthen market competitiveness.
- Clinical Validation Results: In a real-world validation study, HRD-RNA-positive pancreatic cancer patients experienced a significant reduction in mortality risk when treated with platinum-based regimens, underscoring the algorithm's importance and application prospects in cancer treatment.
- Earnings Report Anticipation: Tempus AI is set to report earnings on February 24, with an EPS estimate of a loss of 14 cents and revenue projected at $364.45 million, indicating a positive trend in revenue growth that may further boost investor confidence.
See More
Tempus AI Stock Rises on New Cancer Detection Algorithm Launch
- Algorithm Launch: Tempus AI's introduction of the HRD-RNA cancer detection algorithm has led to a ~7% stock price increase in the previous session, reflecting positive market sentiment towards its innovative capabilities.
- Analyst Rating Upgrade: Mizuho Securities has issued a new Outperform rating for Tempus AI, with analyst Bradley Bowers expressing optimism about the company's growth prospects in the life sciences sector, anticipating growth above market levels in the coming years.
- Significant Market Potential: The analyst highlighted that Tempus's core precision oncology diagnostics market has a total addressable market (TAM) exceeding $40 billion, with a sustainable growth rate of over 30%, providing strong support for the company's future expansion.
- Positive Financial Outlook: Tempus AI is projected to achieve $1.27 billion in revenue by 2025, representing an approximately 83% year-over-year increase, while total contract value surpasses $1.1 billion, indicating robust performance and growth potential in the market.
See More
Tempus AI Launches New Cancer Detection Tool
- New Tool Launch: Tempus AI has introduced the HRD RNA algorithm aimed at enhancing the accuracy of cancer identification and treatment, particularly focusing on homologous recombination deficiency (HRD), a characteristic linked to cancer cells' ability to repair DNA damage.
- Detection Advantage: This RNA-based method is reported to be more accurate than traditional DNA tests, enabling better identification of HRD status, which assists doctors in determining which patients may benefit from platinum-based chemotherapy or PARP inhibitors, thereby improving treatment outcomes.
- Market Potential: Although HRD RNA is currently available for research use only, Tempus expects to gain clinical use approval by the end of the year, which could open new market opportunities and further drive innovation in cancer treatment.
- Warning Signals: Despite the promising launch of the new tool, GuruFocus has identified six warning signs associated with Tempus AI, prompting investors to carefully assess its fair value to mitigate potential risks.
See More
Wall Street Analysts Adjust Ratings on Key Stocks
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives and future expectations for these companies.
- Market Dynamics: While specific stock names are not disclosed, changes in analyst ratings typically influence investor decisions and can lead to price volatility in the affected stocks.
- Investor Focus: Investors considering buying TEM stock should pay attention to the latest insights from analysts to make more informed investment decisions, especially amid increasing market uncertainties.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, despite the lack of specific rating details.
See More
Tempus Launches HRD-RNA Algorithm, Shares Surge
- Algorithm Launch: Tempus has introduced the HRD-RNA algorithm, an AI-driven model designed to more accurately detect homologous recombination deficiency (HRD) in tumor cells, enhancing detection precision compared to traditional DNA assays, which is expected to significantly improve treatment outcomes for cancer patients.
- Clinical Application Outlook: Currently a research-use-only product, the HRD-RNA algorithm is intended for identifying HRD status in solid tumor patients and determining eligibility for platinum-based chemotherapy or PARP inhibitors, with clinical availability anticipated by the end of this year, potentially transforming cancer treatment standards.
- Positive Market Reaction: Following the algorithm's announcement, Tempus shares surged on Wednesday, reflecting strong market confidence in its innovative technology, which may attract more investor interest in the company's future growth potential.
- Optimistic Financial Outlook: Tempus projects revenues of $1.27 billion by 2025, representing an approximately 83% year-over-year increase, indicating robust growth momentum in the healthcare AI sector and further solidifying its leadership position in the industry.
See More
Oran Muduroglu to Lead U.S. Launch of eyonis® LCS
- Leadership Appointment: Oran Muduroglu has been appointed President of Median eyonis Inc., tasked with leading the U.S. launch of eyonis® LCS, leveraging over three decades of experience in medical imaging to drive rapid market penetration.
- Market Infrastructure: Median has established a commercial and clinical infrastructure in the U.S. along with a Medicare reimbursement pathway, providing robust support for the expansion of eyonis® LCS, which is expected to significantly enhance accessibility to lung cancer screening.
- Clinical Partnerships: The company is actively engaged in discussions to establish key clinical partnerships aimed at supporting broad access across U.S. lung cancer screening programs, which is anticipated to enhance market impact and product awareness.
- Financial Outlook: Under Medicare's payment system, eyonis® LCS is expected to be reimbursed at approximately $601 to $700 per exam, catering to around 14.5 million Americans eligible for lung cancer screening, indicating substantial market potential and business opportunities.
See More
Tempus AI Shares Rise on New Algorithm and Analyst Upgrade
- Analyst Upgrade: Mizuho initiated coverage on Tempus AI with an Outperform rating and a price target of $100, reflecting confidence in the company's growth potential and likely attracting more investor interest.
- New Algorithm Launch: Tempus introduced the HRD-RNA algorithm, an AI-driven tool that identifies patients suitable for platinum-based chemotherapy or PARP inhibitors by analyzing gene expression, which is expected to enhance clinical outcomes and strengthen market competitiveness.
- Clinical Validation Results: In a real-world validation study, HRD-RNA-positive pancreatic cancer patients experienced a significant reduction in mortality risk when treated with platinum-based regimens, underscoring the algorithm's importance and application prospects in cancer treatment.
- Earnings Report Anticipation: Tempus AI is set to report earnings on February 24, with an EPS estimate of a loss of 14 cents and revenue projected at $364.45 million, indicating a positive trend in revenue growth that may further boost investor confidence.
See More
Tempus AI Stock Rises on New Cancer Detection Algorithm Launch
- Algorithm Launch: Tempus AI's introduction of the HRD-RNA cancer detection algorithm has led to a ~7% stock price increase in the previous session, reflecting positive market sentiment towards its innovative capabilities.
- Analyst Rating Upgrade: Mizuho Securities has issued a new Outperform rating for Tempus AI, with analyst Bradley Bowers expressing optimism about the company's growth prospects in the life sciences sector, anticipating growth above market levels in the coming years.
- Significant Market Potential: The analyst highlighted that Tempus's core precision oncology diagnostics market has a total addressable market (TAM) exceeding $40 billion, with a sustainable growth rate of over 30%, providing strong support for the company's future expansion.
- Positive Financial Outlook: Tempus AI is projected to achieve $1.27 billion in revenue by 2025, representing an approximately 83% year-over-year increase, while total contract value surpasses $1.1 billion, indicating robust performance and growth potential in the market.
See More
Tempus AI Launches New Cancer Detection Tool
- New Tool Launch: Tempus AI has introduced the HRD RNA algorithm aimed at enhancing the accuracy of cancer identification and treatment, particularly focusing on homologous recombination deficiency (HRD), a characteristic linked to cancer cells' ability to repair DNA damage.
- Detection Advantage: This RNA-based method is reported to be more accurate than traditional DNA tests, enabling better identification of HRD status, which assists doctors in determining which patients may benefit from platinum-based chemotherapy or PARP inhibitors, thereby improving treatment outcomes.
- Market Potential: Although HRD RNA is currently available for research use only, Tempus expects to gain clinical use approval by the end of the year, which could open new market opportunities and further drive innovation in cancer treatment.
- Warning Signals: Despite the promising launch of the new tool, GuruFocus has identified six warning signs associated with Tempus AI, prompting investors to carefully assess its fair value to mitigate potential risks.
See More
Wall Street Analysts Adjust Ratings on Key Stocks
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives and future expectations for these companies.
- Market Dynamics: While specific stock names are not disclosed, changes in analyst ratings typically influence investor decisions and can lead to price volatility in the affected stocks.
- Investor Focus: Investors considering buying TEM stock should pay attention to the latest insights from analysts to make more informed investment decisions, especially amid increasing market uncertainties.
- Source of Information: This information is provided by Benzinga, highlighting the significance of analyst ratings in investment decisions, despite the lack of specific rating details.
See More
Tempus Launches HRD-RNA Algorithm, Shares Surge
- Algorithm Launch: Tempus has introduced the HRD-RNA algorithm, an AI-driven model designed to more accurately detect homologous recombination deficiency (HRD) in tumor cells, enhancing detection precision compared to traditional DNA assays, which is expected to significantly improve treatment outcomes for cancer patients.
- Clinical Application Outlook: Currently a research-use-only product, the HRD-RNA algorithm is intended for identifying HRD status in solid tumor patients and determining eligibility for platinum-based chemotherapy or PARP inhibitors, with clinical availability anticipated by the end of this year, potentially transforming cancer treatment standards.
- Positive Market Reaction: Following the algorithm's announcement, Tempus shares surged on Wednesday, reflecting strong market confidence in its innovative technology, which may attract more investor interest in the company's future growth potential.
- Optimistic Financial Outlook: Tempus projects revenues of $1.27 billion by 2025, representing an approximately 83% year-over-year increase, indicating robust growth momentum in the healthcare AI sector and further solidifying its leadership position in the industry.
See More
Oran Muduroglu to Lead U.S. Launch of eyonis® LCS
- Leadership Appointment: Oran Muduroglu has been appointed President of Median eyonis Inc., tasked with leading the U.S. launch of eyonis® LCS, leveraging over three decades of experience in medical imaging to drive rapid market penetration.
- Market Infrastructure: Median has established a commercial and clinical infrastructure in the U.S. along with a Medicare reimbursement pathway, providing robust support for the expansion of eyonis® LCS, which is expected to significantly enhance accessibility to lung cancer screening.
- Clinical Partnerships: The company is actively engaged in discussions to establish key clinical partnerships aimed at supporting broad access across U.S. lung cancer screening programs, which is anticipated to enhance market impact and product awareness.
- Financial Outlook: Under Medicare's payment system, eyonis® LCS is expected to be reimbursed at approximately $601 to $700 per exam, catering to around 14.5 million Americans eligible for lung cancer screening, indicating substantial market potential and business opportunities.
See More
