EX-99.1 2 d878812dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Tempus Reports Second Quarter 2024 Results

CHICAGO, August 6, 2024 — Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter that ended June 30, 2024, and provided recent business highlights.

 

  •  

Revenue increased 25% year-over-year to $166.0 million in the second quarter of 2024

 

  •  

Data licensing revenue growth accelerated to 40% year-over-year

 

  •  

Expanded into the minimal residual disease (MRD) market with the launch of both tumor-naïve and tumor-informed assays

 

  •  

Established a joint venture with Softbank to enter the Japanese market

 

  •  

Raised $410.7 million of gross proceeds in initial public offering

 

  •  

Net Loss of ($552.2 million), largely driven by $493.1 million of stock compensation expense and related employer payroll taxes tied to initial public offering

 

  •  

Adjusted EBITDA improved $12.7 million quarter-over-quarter to ($31.2 million)

 

  •  

Expect full year 2024 revenue of ~$700 million, which represents ~32% annual growth

 

  •  

For additional information on the quarter, including a letter from our CEO, please visit our investor relations site

“We continue to make great progress in deploying technology within healthcare as providers and life science companies are increasingly seeking AI solutions,” said Eric Lefkofsky, Founder and CEO of Tempus. “Given our expansive multimodal dataset, and our broad reach across thousands of connected healthcare providers, we are uniquely positioned to advance AI in diagnostics and accelerate the pace of algorithmic insights.”

Second Quarter 2024 Financial Results

 

     Three Months Ended
June 30,		        
     2024     2023     Change  
     (in thousands, except percentages)        

GAAP Results

       

Revenue

    $ 165,969     $ 132,417       25.3 % 

Genomics gross margin

      39.2 %      48.9 %      NM (1) 

Data and services gross margin

      58.7 %      65.9 %      NM (1) 

Operating expenses

    $ 609,005     $ 116,787       NM (1) 

Net loss

    $ (552,212 )    $ (55,832 )      NM (1) 

Non-GAAP Results

       

Non-GAAP Genomics gross margin

      49.4 %      48.9 %      50 bps  

Non-GAAP Data and services gross margin

      72.4 %      65.9 %      650 bps  

Non-GAAP Operating Expenses

    $ 134,742     $ 116,787       15.4 % 

Adjusted EBITDA

    $ (31,186 )    $ (36,967 )      15.6 % 

 

 

(1)

Not meaningful due to the impact of including stock compensation expense and related employer payroll taxes

 

  •  

Genomics revenue of $112.3 million in the second quarter of 2024, an increase of $20.4 million or 22.2% over the second quarter of 2023.

 

  •  

Data and services revenue of $53.6 million in the second quarter of 2024, an increase of $13.2 million or 32.5% over the second quarter of 2023, including 40% growth in our Insights (data licensing) business.

 

  •  

Non-GAAP Genomics gross margin was 49.4% in the second quarter of 2024, compared to 48.9% in the second quarter of 2023.

 

  •  

Non-GAAP Data and services gross margin was 72.4% in the second quarter of 2024, compared to 65.9% in the second quarter of 2023.

 

  •  

Net Loss of ($552.2 million), largely driven by $493.1 million of stock compensation and related employer payroll taxes tied to initial public offering.

 

  •  

Adjusted EBITDA ($31.2 million) in the second quarter of 2024, compared to ($43.9 million) in the first quarter of 2024.

Recent Operating Highlights

 

  •  

Announced the clinical launch of our MRD portfolio including Tempus’ xM tumor-naïve test and xM tumor-informed (NeXT Personal® Dx) test.

 

  •  

Received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the Tempus ECG-AF device that uses AI to help identify patients who may be at increased risk of atrial fibrillation/flutter (AF).

  •  

Completed a Joint Venture Agreement with SoftBank, titled “SB Tempus,” to bring Tempus’ AI-enabled precision medicine solutions to Japan.

 

  •  

Received Advanced Diagnostic Laboratory Test (ADLT) status from the Centers for Medicare & Medicaid Services (CMS) for Tempus’ next-generation sequencing assay, xT CDx.

 

  •  

Sold 11,100,000 shares of Class A common stock at $37 per share in initial public offering, raising $410.7 million of gross proceeds.

Financial Outlook and Guidance

Tempus expects full year 2024 revenue of approximately $700 million, which represents approximately 32% year-over-year growth. The Company expects approximately ($105 million) in adjusted EBITDA, an improvement of approximately $50 million over 2023.

Webcast and Conference Call Information

A conference call and webcast will begin today, August 6, 2024 after market close at 4:30 p.m. Eastern Time. Interested parties may access details at:

Conference ID: 6326328

Domestic Dial-in Number: (800) 715-9871

International Dial-in Number: (646) 307-1963

Live Webcast: https://edge.media-server.com/mmc/p/75k462fh

The webcast may be accessed on the company’s investor relations website at investors.tempus.com. For those unable to listen to the live webcast, a recording will be made available on the company’s website after the event and will be accessible for one year. Visit the investor relations website to find the company’s latest deck, and commentary on the quarter by Eric Lefkofsky, Founder and CEO and Jim Rogers, CFO, which will be discussed on the conference call and webcast.

About Tempus

Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com.

Non-GAAP Financial Measures

In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures.

Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the “stock-based compensation adjustments”). Non-GAAP gross margin is defined as gross profit, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments. Non-GAAP net income (loss) is defined as net income (loss), adjusted to exclude (i) losses on equity method investments, (ii) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, and (iv) the payment of $2.3 million of our Series G-4 convertible preferred stock in connection with the initial public offering (the “G-4 Special Payment”). Non-GAAP net income (loss) per share is defined as adjusted net income (loss) divided by weighted average common shares outstanding, basic and diluted.

Adjusted EBITDA is defined as net income (loss), adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses on equity method investments, (vi) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (vii) the stock-based compensation adjustments, and (Viii) the G-4 Special Payment. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue.

Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus’ business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

Tempus does not provide guidance for net loss, the most directly comparable GAAP measure to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net income and the respective reconciliations. These forecasted items are not within Tempus’ control, may vary greatly between periods and could significantly impact future financial results.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus and Tempus’ industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus’ expected financial results for full year 2024; the contributions of Tempus’ research and findings to the larger scientific community and the use of Tempus’ products and services to advance clinical care for patients. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus’ products and services; Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Final Prospectus filed with the Securities and Exchange Commission (“SEC”) on June 17, 2024, pursuant to Rule 424(b)(4) under the Securities Act, as well as in other filings Tempus may make with the SEC in the future, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Contacts

Tempus Communications

Erin Carron

media@tempus.com

Tempus Investor Relations

Elizabeth Krutoholow

Elizabeth.krutoholow@tempus.com

H/Advisors Abernathy

Dan Scorpio

Dan.scorpio@h-advisors.global

Source: Tempus AI, Inc.

Tempus AI, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except per share amounts)

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
     2024     2023     2024     2023  

Net revenue

         

Genomics

    $ 112,324     $ 91,924     $ 214,893     $ 173,982  

Data and services

      53,645       40,493       96,896       74,059  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenue

    $ 165,969     $ 132,417     $ 311,789     $ 248,041  

Cost and operating expenses

         

Cost of revenues, genomics

      68,324       46,961       121,159       92,241  

Cost of revenues, data and services

      22,132       13,807       37,420       25,200  

Technology research and development

      77,908       23,427       104,975       46,329  

Research and development

      68,025       22,171       92,365       43,034  

Selling, general and administrative

      463,072       71,189       542,636       140,236  

Total cost and operating expenses

      699,461       177,555       898,555       347,040  
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss from operations

    $ (533,492 )    $ (45,138 )    $ (586,766 )    $ (98,999 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Interest income

      1,718       1,957       2,749       4,381  

Interest expense

      (13,295 )      (11,712 )      (26,533 )      (20,903 ) 

Other (expense) income, net

      (7,048 )      (766 )      (6,299 )      5,622  
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss before provision for income taxes

    $ (552,117 )    $ (55,659 )    $ (616,849 )    $ (109,899 ) 

Provision for income taxes

      (95 )      (3 )      (106 )      (9 ) 

Losses from equity method investments

      —        (170 )      —        (301 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Loss

    $ (552,212 )    $ (55,832 )    $ (616,955 )    $ (110,209 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Dividends on Series A, B, B-1, B-2, C, D, E, F, G, G-3, and G-4 preferred shares

      (11,540 )      (10,897 )      (39,347 )      (21,566 ) 

Cumulative Undeclared Dividends on Series C preferred shares

      (668 )      (745 )      (1,174 )      (1,466 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss attributable to common shareholders, basic and diluted

      (564,420 )      (67,474 )      (657,476 )      (133,241 ) 

Net loss per share attributable to common shareholders, basic and diluted

    $ (6.86 )    $ (1.07 )    $ (9.02 )    $ (2.11 ) 

Weighted-average shares outstanding used to compute net loss per share, basic and diluted

      82,325       63,286       72,930       63,257  
  

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive Loss, net of tax

         

Net loss

    $ (552,212 )    $ (55,832 )    $ (616,955 )    $ (110,209 ) 

Foreign currency translation adjustment

      (43 )      53       (99 )      25  
  

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive loss

    $ (552,255 )    $ (55,779 )    $ (617,054 )    $ (110,184 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Tempus AI, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)

 

     June 30, 2024     December 31, 2023  

Assets

     

Current Assets

     

Cash and cash equivalents

    $ 478,811     $ 165,767  

Accounts receivable, net of allowances of $1,092 and $1,115 at June 30, 2024 and December 31, 2023, respectively

      118,106       94,462  

Inventory

      32,690       28,845  

Warrant asset

      800       5,070  

Prepaid expenses and other current assets

      29,704       17,295  

Marketable equity securities

      11,255       31,807  

Deferred offering costs

      —        7,085  
  

 

 

    

 

 

  

Total current assets

    $ 671,366     $ 350,331  

Property and equipment, net

      60,539       61,681  

Goodwill

      73,345       73,354  

Warrant asset, less current portion

      1,500       4,930  

Intangible assets, net

      16,252       21,916  

Investments and other assets

      7,677       8,971  

Warrant contract asset, less current portion

      19,077       21,499  

Operating lease right-of-use assets

      13,994       20,530  

Restricted cash

      861       840  
  

 

 

    

 

 

  

Total Assets

    $ 864,611     $ 564,052  
  

 

 

    

 

 

  

Liabilities, Convertible redeemable preferred stock, and Stockholders’ equity (deficit)

     

Current Liabilities

     

Accounts payable

      28,646       54,421  

Accrued expenses

      85,185       82,517  

Deferred revenue

      50,905       64,860  

Other current liabilities

      7,273       8,213  

Operating lease liabilities

      5,828       6,437  

Accrued data licensing fees

      3,727       6,382  

Accrued dividends

      —        9,797  
  

 

 

    

 

 

  

Total current liabilities

    $ 181,564     $ 232,627  

Operating lease liabilities, less current portion

      27,238       32,040  

Convertible promissory note

      180,648       193,124  

Warrant liability

      33,600       34,500  

Other long-term liabilities

      16,790       19,751  

Interest payable

      62,608       55,321  

Long-term debt, net

      261,853       256,541  

Deferred revenue, less current portion

      2,059       16,768  
  

 

 

    

 

 

  

Total Liabilities

    $ 766,360     $ 840,672  
  

 

 

    

 

 

  

Commitments and contingencies (Note 7)

     

Convertible redeemable preferred stock, $0.0001 par value, no and 69,803,765 shares authorized at June 30, 2024 and December 31, 2023, respectively; no and 63,525,953 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively; aggregate liquidation preference of $0 and $1,130,429 at June 30, 2024 and December 31, 2023, respectively

    $ —      $ 1,105,543  

Stockholders’ equity (deficit)

     

Class A Voting Common Stock, $0.0001 par value, 1,000,000,000 and 200,228,024 shares authorized at June 30, 2024 and December 31, 2023, respectively; 149,274,923 and 58,367,961 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

    $ 15     $ 6  

Class B Voting Common Stock, $0.0001 par value, 5,500,000 and 5,374,899 shares authorized at June 30, 2024 and December 31, 2023, respectively; 5,043,789 and no shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

      1       —  

Non-voting Common Stock, $0.0001 par value, no and 66,946,627 shares authorized at June 30, 2024 and December 31, 2023, respectively; no shares issued and outstanding at June 30, 2024, and 5,205,802 shares issued and 5,060,336 shares outstanding at December 31, 2023

      —        0  

Treasury Stock, 145,466 shares at June 30, 2024 and December 31, 2023, at cost

      (3,602 )      (3,602 ) 

Additional Paid-In Capital

      2,163,911       18,345  

Accumulated Other Comprehensive (Loss) Income

      (94 )      5  

Accumulated deficit

      (2,061,980 )      (1,396,917 ) 
  

 

 

    

 

 

  

Total Stockholders’ equity (deficit)

    $ 98,251     $ (1,382,163 ) 
  

 

 

    

 

 

  

Total Liabilities, Convertible redeemable preferred stock, and Stockholders’ equity (deficit)

    $ 864,611     $ 564,052  
  

 

 

    

 

 

  

Tempus AI, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands, except per share amounts)

 

     Six Months Ended June 30,  
     2024     2023  

Operating activities

     

Net loss

    $ (616,955 )    $ (110,209 ) 

Adjustments to reconcile net loss to net cash used in operating activities

     

Change in fair value of warrant liability

    $ (900 )    $ (5,700 ) 

Stock-based compensation

      488,313       —   

Gain on warrant exercise

      (173 )      —   

Gain on marketable equity securities

      (2,541 )      —   

Amortization of original issue discount

      691       489  

Amortization of deferred financing fees

      255       255  

Change in fair value of contingent consideration

      165       —   

Amortization of warrant contract asset

      2,422       3,307  

Depreciation and amortization

      18,348       16,185  

Provision for bad debt expense

      327       1,376  

Change in fair value of warrant asset

      7,700       —   

Loss from equity-method investments

      —        301  

Amortization of finance right-of-use lease assets

      —        190  

Non-cash operating lease costs

      3,252       3,382  

Minimum accretion expense

      92       187  

Impairment of intangible assets

      —        7,359  

PIK interest added to principal

      4,366       297  

Change in assets and liabilities

     

Accounts receivable

      (23,971 )      (6,850 ) 

Inventory

      (3,845 )      (5,101 ) 

Prepaid expenses and other current assets

      (12,409 )      (1,634 ) 

Investments and other assets

      1,294       (4,528 ) 

Accounts payable

      (33,371 )      (4,195 ) 

Deferred revenue

      (28,669 )      (19,974 ) 

Accrued data licensing fees

      (2,749 )      (7,608 ) 

Accrued expenses & other

      (2,805 )      8,125  

Interest payable

      7,287       7,611  

Operating lease liabilities

      (4,582 )      (4,352 ) 
  

 

 

    

 

 

  

Net cash used in operating activities

    $ (198,458 )    $ (121,087 ) 
  

 

 

    

 

 

  

Investing activities

     

Purchases of property and equipment

    $ (14,116 )    $ (15,906 ) 

Proceeds from sale of marketable equity securities

      23,098       —   

Business combinations, net of cash acquired (Note 4)

      —        (2,869 ) 
  

 

 

    

 

 

  

Net cash provided by (used in) investing activities

    $ 8,982     $ (18,775 ) 
  

 

 

    

 

 

  

Financing activities

     

Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions

    $ 381,951     $ —   

Tax withholding related to net share settlement of restricted stock units

      (69,918 )      —   

Issuance of Series G-5 Preferred Stock

      199,750       —   

Principal payments on finance lease liabilities

      —        (192 ) 

Purchase of treasury stock

      —        (3,602 ) 

Payment of deferred offering costs

      (2,714 )      (151 ) 

Dividends paid

      (5,625 )      (5,625 ) 

Proceeds from long-term debt, net of original issue discount

      —        48,750  

Payment of indemnity holdback related to acquisition

      (813 )      —   
  

 

 

    

 

 

  

Net cash provided by financing activities

    $ 502,631     $ 39,180  
  

 

 

    

 

 

  

Effect of foreign exchange rates on cash

    $ (90 )    $ 28  
  

 

 

    

 

 

  

Net increase (decrease) in Cash, Cash Equivalents and Restricted Cash

    $ 313,065     $ (100,654 ) 

Cash, cash equivalents and restricted cash, beginning of period

      166,607       303,731  
  

 

 

    

 

 

  

Cash, cash equivalents and restricted cash, end of period

    $ 479,672     $ 203,077  
  

 

 

    

 

 

  

Cash, Cash Equivalents and Restricted Cash are Comprised of:

     

Cash and cash equivalents

    $ 478,811     $ 202,266  

Restricted cash and cash equivalents

      861       811  
  

 

 

    

 

 

  

Total cash, cash equivalents and restricted cash

    $ 479,672     $ 203,077  
  

 

 

    

 

 

  

Supplemental disclosure of cash flow information

     

Cash paid during the year for interest

    $ 13,921     $ 5,691  
  

 

 

    

 

 

  

Cash paid for income taxes

    $ 89     $ 41  
  

 

 

    

 

 

  

Supplemental disclosure of noncash investing and financing activities

     

Dividends payable

    $ 5,487     $ 4,545  
  

 

 

    

 

 

  

Purchases of property and equipment, accrued but not paid

    $ 1,108     $ 2,952  
  

 

 

    

 

 

  

Deferred offering costs, accrued but not yet paid

    $ 6,051     $ 2,917  
  

 

 

    

 

 

  

Redemption of convertible promissory note

    $ 12,476     $ 13,926  
  

 

 

    

 

 

  

Non-voting common stock issued in connection with business combinations

    $ 344     $ 4,305  
  

 

 

    

 

 

  

Operating lease liabilities arising from obtaining right-of-use assets

    $ —      $ 892  
  

 

 

    

 

 

  

Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering

    $  1,348,809     $ —   
  

 

 

    

 

 

  

Taxes related to net share settlement of restricted stock units not yet paid

    $ 164     $ —   
  

 

 

    

 

 

  

Reclassificiation of deferred offering costs to additional paid-in capital upon initial public offering

    $ 12,347     $ —   
  

 

 

    

 

 

  

Issuance of Series G-3 Preferred Stock

    $ 3,809     $ 2,738  
  

 

 

    

 

 

  

Issuance of Series G-4 Preferred Stock

    $ 611     $ —   
  

 

 

    

 

 

  

Tempus AI, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(unaudited)

(in thousands, except percentages and per share amounts)

Genomics Gross Profit & Gross Margin

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2024     2023     2024     2023  

Genomics revenue

    $ 112,324     $ 91,924     $ 214,893     $ 173,982  

Cost of revenues, genomics

      68,324       46,961       121,159       92,241  
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit, genomics

    $ 44,000     $ 44,963     $ 93,734     $ 81,741  

Stock-based compensation expense

      11,327       —        11,327       —   

Employer payroll tax related to stock-based compensation

      136       —        136       —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross profit, genomics

    $ 55,463     $ 44,963     $ 105,197     $ 81,741  
  

 

 

    

 

 

    

 

 

    

 

 

  

Genomics gross margin

      39.2 %      48.9 %      43.6 %      47.0 % 

Stock-based compensation expense

      10.1 %      0.0 %      5.3 %      0.0 % 

Employer payroll tax related to stock-based compensation

      0.1 %      0.0 %      0.1 %      0.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross margin, genomics

      49.4 %      48.9 %      49.0 %      47.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Data and Services Gross Profit & Gross Margin

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2024     2023     2024     2023  

Data and services revenue

    $ 53,645     $ 40,493     $ 96,896     $ 74,059  

Cost of revenues, data and services

      22,132       13,807       37,420       25,200  
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit, data and services

    $ 31,513     $ 26,686     $ 59,476     $ 48,859  

Stock-based compensation expense

      7,229       —        7,229       —   

Employer payroll tax related to stock-based compensation

      119       —        119       —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross profit, data and services

    $ 38,861     $ 26,686     $ 66,824     $ 48,859  
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin, data and services

      58.7 %      65.9 %      61.4 %      66.0 % 

Stock-based compensation expense

      13.5 %      0.0 %      7.5 %      0.0 % 

Employer payroll tax related to stock-based compensation

      0.2 %      0.0 %      0.1 %      0.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross margin, data and services

      72.4 %      65.9 %      69.0 %      66.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Gross Profit & Gross Margin

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2024     2023     2024     2023  

Net revenue

    $ 165,969     $ 132,417     $ 311,789     $ 248,041  

Cost of revenues

      90,456       60,768       158,579       117,441  
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

    $ 75,513     $ 71,649     $ 153,210     $ 130,600  

Stock-based compensation expense

      18,556       —        18,556       —   

Employer payroll tax related to stock-based compensation

      255       —        255       —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross profit

    $ 94,324     $ 71,649     $ 172,021     $ 130,600  
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross margin

      45.5 %      54.1 %      49.1 %      52.7 % 

Stock-based compensation expense

      11.2 %      0.0 %      6.0 %      0.0 % 

Employer payroll tax related to stock-based compensation

      0.2 %      0.0 %      0.1 %      0.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross margin

      56.8 %      54.1 %      55.2 %      52.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

Operating Expenses

 

     Three Months Ended June 30,      Six Months Ended June 30,  
     2024      2023      2024      2023  

Technology research and development

    $ 77,908      $ 23,427      $  104,975      $ 46,329  

Stock-based compensation expense

      50,434        —         50,434        —   

Employer payroll tax related to stock-based compensation

      1,248        —         1,248        —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-GAAP technology research and development

    $ 26,226      $ 23,427      $ 53,293      $ 46,329  
  

 

 

     

 

 

     

 

 

     

 

 

  

Research and development

    $ 68,025      $ 22,171      $ 92,365      $ 43,034  

Stock-based compensation expense

      42,233        —         42,233        —   

Employer payroll tax related to stock-based compensation

      676        —         676        —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-GAAP research and development

    $ 25,116      $ 22,171      $ 49,456      $ 43,034  
  

 

 

     

 

 

     

 

 

     

 

 

  

Selling, general and administrative

    $ 463,072      $ 71,189      $ 542,636      $ 140,236  

Stock-based compensation expense

      377,090        —         377,090        —   

Employer payroll tax related to stock-based compensation

      2,582        —         2,582        —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-GAAP selling, general and administrative

    $ 83,400      $ 71,189      $ 162,964      $ 140,236  
  

 

 

     

 

 

     

 

 

     

 

 

  

Operating expenses

    $ 609,005      $ 116,787      $ 739,976      $ 229,599  

Stock-based compensation expense

      469,757        —         469,757        —   

Employer payroll tax related to stock-based compensation

      4,506        —         4,506        —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Non-GAAP operating expenses

    $  134,742      $  116,787      $ 265,713      $  229,599  
  

 

 

     

 

 

     

 

 

     

 

 

  

Earnings per Share

 

     Three Months Ended
June 30, 2024		      Six Months Ended
June 30, 2024		  

Net loss

    $ (552,212 )     $ (616,955 ) 

Fair value changes(1)

      4,870        4,280  

Stock-based compensation expense

      488,313        488,313  

Employer payroll tax related to stock-based compensation

      4,762        4,762  

G-4 Special Payment

      2,250        2,250  
  

 

 

     

 

 

  

Non-GAAP net loss

    $ (52,017 )     $ (117,350 ) 

Non-GAAP net loss per share

    $ (0.63 )     $ (1.61 ) 

Weighted average common shares outstanding, basic and diluted

      82,325        72,930  
  

 

 

     

 

 

  

 

(1) 

Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities. 

Adjusted EBITDA

 

     Three Months Ended June 30,      Six Months Ended June 30,  
     2024      2023      2024      2023  

Net loss

    $ (552,212 )     $ (55,832 )     $ (616,955 )     $ (110,209 ) 

Interest income

      (1,718 )       (1,957 )       (2,749 )       (4,381 ) 

Interest expense

      13,295        11,712        26,533        20,903  

Depreciation

      6,415        5,194        12,684        10,254  

Amortization

      2,744        3,043        5,664        5,931  

Provision for income taxes

      95        3        106        9  
  

 

 

     

 

 

     

 

 

     

 

 

  

EBITDA

    $ (531,381 )     $ (37,837 )     $ (574,717 )     $ (77,493 ) 

Losses on equity method investments

      —         170        —         301  

Fair value changes(1)

      4,870        700        4,280        (5,700 ) 

Stock-based compensation expense

      488,313        —         488,313        —   

Employer payroll tax related to stock-based compensation

      4,762        —         4,762        —   

G-4 Special Payment

      2,250        —         2,250        —   
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted EBITDA

    $ (31,186 )     $ (36,967 )     $ (75,112 )     $ (82,892 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) 

Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities.