Tempus, a genomic testing and information analytics firm based by Eric Lefkosky, who beforehand based Groupon, debuted on the Nasdaq on Friday, rising about 15% on the open.
The corporate priced its IPO on Thursday at $37 apiece, on the excessive finish of the $35 to $37 value vary, elevating practically $411 million at a full valuation of greater than $6 billion. Nevertheless, Tempus’ most up-to-date official non-public valuation was $8.1 billion, and PitchBook estimates the corporate to be value $10.25 billion on the finish of 2022. Shares closed at $40.25 on the primary day of buying and selling, practically 9% above the IPO value.
Regardless of a big low cost to its earlier valuation, the IPO is a feat for a loss-making firm in what is taken into account a heat interval for public choices. Tempus had income of $531 million in 2023 with a web lack of $290 million. However the firm’s working losses have narrowed from 83% in 2022 to 37% in 2023, and Lefkosky advised CNBC that he expects Tempus to be money circulation and EBITDA optimistic in 2025.
Lefkofsky based Tempus in 2015 after noticing that medical doctors weren’t counting on information throughout his spouse’s breast most cancers therapy. He determined to construct an organization that will use the know-how and information obtained from genomic sequencing.
Tempus is now making an attempt to place itself as an AI firm, though AI income was solely $5.5 million, roughly 1% of its 2023 income. The corporate mentioned in its prospectus that its AI product line is nascent, however that it intends to “embed AI, together with generative AI” into all features of its diagnostic instruments.
Lefkofsky is at the moment the corporate’s largest shareholder. In accordance with S1, he owns 30.1% of the corporate and 65% of the shareholder votes because of the dual-class share construction. The agency, managed by Kimberly Cavell, the ex-wife of Brad Cavell, a longtime enterprise companion of Lefkosfky, owns 10.2% of Tempus. Scottish asset supervisor Baillie Gifford owns a 5.9% stake within the firm, value $350 million on the IPO value.
Early Tempus shareholders embrace NEA, Revolution and T. Rowe Value. In April, the corporate obtained a $200 million Sequence G5 from SoftBank. Tempus is the fourth firm Lefkofsky has taken public. He’s finest recognized for founding Groupon, which went public at a valuation of practically $13 billion in 2011 however now trades for lower than $600 million.
Tempus is the fourth firm Lefkofsky has taken public. He’s finest recognized for founding Groupon, which went public at a valuation of practically $13 billion in 2011 however now trades for lower than $600 million.