Tempus AI (TEM): Future Prospects and Stock Price Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

Tempus AI (TEM) is a healthcare technology company that leverages AI and big data to drive precision medicine.

Listed on NASDAQ in June 2024, the company attracted investor interest as a growth stock in the medical AI field. In particular, the company became well-known after Nancy Pelosi, a prominent U.S. politician, invested in the company.

The company's innovative business model, which integrates AI and healthcare, has been well received in the market.

In this section, we explore Tempus AI's business, competitive advantages, and future growth potential in detail.

What is Tempus AI (TEM) and what is its business?

Tempus AI, Inc. was founded in 2015 by Eric Lefkofsky, aMedical technology company.

Headquartered in Chicago, IL, the company aims to provide precision medicine using AI and data.
The impetus for the establishment of the company came when Mr. Rufecofsky's wife was diagnosed with breast cancer.

The company was founded to take advantage of this opportunity to optimize the use of medical data and promote more accurate diagnosis and personalized medicine.

Tempus AI is,Provides precision medicine combining AI and healthcare data in areas such as cancer, cardiology, radiology, and depression.

The company develops solutions for next-generation sequencing diagnostics (NGS), polymerase chain reaction (PCR) profiling, molecular genotyping, and pathological testing for healthcare professionals, pharmaceutical companies, biotechnology companies, and researchers.

The company's strength lies in analyzing medical data and assisting in the formulation of individualized treatment plans.

Tempus AI's company information is below.

• Company Name: P.O. Box Tempus AI, Inc.
• Year of establishment: April 1, 1949 2015
• Headquarter Location: Tokyo, Japan Chicago, Illinois, USA
• Representative Eric Lefkofsky
• Official website:. https://www.tempus.com
• Principal Business:. Provide AI-based precision medicine and diagnostic technologies (genomics analysis, AI applications, clinical data analysis)

What is Tempus AI's (TEM) corporate philosophy and vision?

Tempus AI's vision is to "improve the lives of everyone, including cancer patients, by facilitating data-driven decision-making and promoting precision medicine.
Mission to empower healthcare professionals, researchers, and patients through the use of cutting-edge AI technology and quality dataThe following is a summary of the results of the study.

The company focuses on the following values

• patient-centered way of thinkingThe patient's best interest is always the first consideration and the first course of action.
• Data-driven decision making: To make objective judgments based on evidence.
• innovationThe company is committed to contributing to the advancement of healthcare through the development of new technologies and services.
• collaborationThe following is a summary of the principles and practices of the "CAR": a commitment to cooperate with diverse stakeholders, including healthcare professionals, researchers, and patients, to achieve common goals.
• transparencyTransparency and accountability in our business activities.

What are Tempus AI's (TEM) main services?

Tempus AI, Inc.'s (Tempus AI, Inc.) core services consist of the following five pillars

Genomics Analysis (Genomics)

Tempus AI uses next-generation sequencing (NGS) and molecular profiling technologies in its own laboratories to help select the best treatment for each patient. In the diagnosis of cancer and hereditary diseases, genetic mutations can be identified through DNA and RNA analysis.

• oncogene sequencingCancer: Analysis of tumor DNA from cancer patients to identify genetic mutations that are therapeutic targets.
• Polymerase Chain Reaction (PCR) Testing: Improve diagnostic accuracy by detecting specific genetic mutations
• molecular genotypingIdentify individual genetic characteristics and develop a precise treatment plan

This genomics analysis allows physicians to select the best treatment for each patient.

Data & Services

Tempus AI collects and structures medical data and provides it to pharmaceutical companies and medical institutions to help improve the efficiency of research and development and clinical trials. In particular, the following services play an important role

• Clinical Trial Matching Service: Match patient data with clinical trial requirements to provide appropriate treatment opportunities
• Data license providedAnonymized medical data is supplied to pharmaceutical and biotech companies to support new drug development and disease research.
• Follicular Lymphoma Data Library: Partnering with the Follicular Lymphoma Innovation Institute (IFLI) to accelerate the development of AI-based targeted therapies.

Medical institutions and researchers can use Tempus AI's data analysis technology to discover new treatments and accelerate clinical research.

AI Applications

Tempus AI provides an advanced AI platform that leverages machine learning to support clinical decision making and improve diagnostic accuracy. Key AI tools include.

Next

• AI-based diagnostic support platform
• Identify care gaps in oncology and cardiology and present optimal treatment options
• Assists healthcare professionals in making quick and accurate diagnoses

Tempus One

• AI assistant for doctors and researchers
• Support decision making based on medical data using natural language processing (NLP)
• Improved operational efficiency of healthcare professionals by 40-601 TP3T

Diagnostic Services

• AI Image AnalysisImprovement of diagnostic accuracy by automatic analysis of CT, MRI, and histopathology slides
• Pathology Diagnostic SupportAI Analysis of Microscopic Images to Help Identify Cancer and Other Diseases

These AI technologies will greatly advance traditional diagnostic methods and enable rapid decision-making in the medical field.

Data-driven medical support tools

Tempus AI provides multiple data analysis tools to help healthcare professionals perform their tasks more efficiently.

• Patient QueryAI: Instant answers to questions about patient history, treatment, and outcomes
• Patient TimelineVisualize the flow of medical treatment by organizing patients' medical records in chronological order.
• Prior AuthorizationAutomates the pre-approval process for insurers and reduces administrative burdens
• Data Exploration: Allows researchers to quickly analyze vast amounts of de-identified data and explore new treatment options

In particular, "Patient Timeline" is a function that centralizes past medical data to enable physicians to easily understand a patient's medical history and streamline treatment planning.

Optimizing Clinical Trials and Building the Healthcare Ecosystem

The Tempus AI data platform has the potential to accelerate clinical trial matching by 300%. This will increase the speed of new drug development and provide more effective treatments for patients faster.

• Utilization of Real World DataOptimize eligibility criteria for clinical trials by analyzing real patient data
• Optimization of test protocols by AIAI assists in selecting appropriate patient groups and improves trial success rates.

Tempus AI is facilitating the development of precision medicine by creating an ecosystem in which healthcare professionals, researchers, and pharmaceutical companies can collaborate seamlessly.

What is Tempus AI's technology platform?

Tempus AI is,Tempus PlatformThe company has developed an advanced technology framework called The goal is to free healthcare data from silos and transform it into actionable insights. The platform is designed to integrate clinical, molecular, and imaging de-identified data to make it more accessible and effective for healthcare professionals.

The main components of Tempus Platform are as follows

• Insights: an integrated library of clinical, molecular, and medical imaging data. Provides resources for healthcare professionals and researchers to make data-driven decisions.
• Trials: Clinical Trial Matching Service. Facilitates participation in appropriate clinical trials based on patients' genetic information and medical history. Contributes to the development of new drugs and improvement of treatment success rates.
• Analytical Services for Pharmaceutical and BiotechnologyAI: Using AI to analyze large-scale medical data. Supporting the optimization of the drug development process.

With these platforms, Tempus AI is enhancing the data-driven approach across the healthcare industry and accelerating the drive for personalized medicine.

Tempus AI's AI technology and diagnostic capabilities

Intelligent Diagnostics suiteprovides advanced diagnostic solutions utilizing AI.

• Leveraging Machine Learning and Generative AI: AI algorithms are used to improve the accuracy of diagnoses. Analyze medical data to improve the accuracy of personalized medicine.
• Streamlining the healthcare processAI: AI reduces diagnostic time and improves the efficiency of medical care. Supporting faster and more accurate treatment decisions.
• Improved patient outcomes: Improve the success rate of treatment by promoting personalized medicine. Providing better medical outcomes by supporting optimal treatment choices for each patient.

The Intelligent Diagnostics suite enables the identification of diseases with greater accuracy than conventional medical diagnostics, facilitating early diagnosis and optimal treatment planning.

What is Tempus AI's (TEM) business model? How does it generate revenue?

Tempus AI's business model is based on the provision of AI-based precision medicine services and the utilization of the healthcare data generated by these services. The revenue stream consists of three main pillars

Genetic Analysis Service

Tempus AI has been working in its own laboratories toNext generation sequencing (NGS) and polymerase chain reaction (PCR) testingand other advanced genetic analyses and provide services to medical institutions and patients.

• genome sequenceAnalysis of tumor DNA from cancer patients to identify genetic mutations
• Robot Sequence Lab OperationsAutomated, high-precision, low-cost analysis process
• Promotion of personalized medicine: Identifying the best treatment for each patient based on genetic information.

This service generates revenue through the provision of testing services while contributing to the realization of precision medicine.

Data Licensing and Healthcare Services

Tempus AI collects and analyzes vast amounts of medical data, anonymizes and structures it, and then provides it to pharmaceutical and biotech companies.
Tempus PlatformThrough the AI, these companies can access de-identified data and perform AI-based analysis.

• Insights" data libraryIntegrate clinical data, molecular data, and imaging data and provide them to medical institutions and pharmaceutical companies
• Trials" clinical trial matching service: Providing a mechanism to use AI to guide appropriate patients into clinical trials
• Provide data analysis tools: Researchers Use AI to Accelerate New Drug Development and Precision Medicine Research

Through these data utilization services, Tempus AI has established strong business relationships with the pharmaceutical industry and generated revenue.

AI Applications and Solution Offerings

Tempus AI connects healthcare providers and patients to clinical trials in real time through Next, an AI platform that uses machine learning to develop optimal treatment plans.

• AI platform "NextMedical data is analyzed to assist in the formulation of diagnostic and treatment plans
• Diagnostic support AI "Intelligent Diagnostics: Improved diagnostic accuracy and treatment optimization through the use of generative AI
• Automate the pre-approval processAI supports the insurance coverage process with "Prior Authorization".

These solutions have significantly improved the operational efficiency of healthcare professionals and have become a new source of revenue for companies.

Who are Tempus AI's key partnerships and alliances?

Tempus AI, Inc. has established the following key partnerships to promote the use of AI in healthcare

Joint venture with Softbank Group

In June 2024, SB TEMPUS was established jointly with SoftBank Group. The joint venture aims to provide genetic testing, collection and analysis of medical data, and AI-based treatment proposals in Japan; SB TEMPUS aims to promote personalized medicine by strengthening cooperation with base hospitals and pharmaceutical companies that play a central role in cancer genome medicine.

Partnership with Avacta Therapeutics

In July 2024, the company partnered with Avacta Therapeutics to develop an AI-based cancer treatment. This collaboration is expected to lead to the development of new therapies that will enhance the effectiveness of cancer treatment.

Through these partnerships, Tempus AI is deepening the integration of AI technology and medical data to help realize personalized medicine.

What is the trading market?

Tempus AI (TEM) will be listed on the NASDAQ market on June 14, 2024, under the ticker symbol

Why is Nancy Pelosi focusing on Tempus AI (TEM)?

This innovative approach by Tempus AI, which uses AI technology to analyze an individual's genomic data and suggest optimal treatment options, is expected to provide new treatment options for patients who have not responded to conventional uniform treatment methods.

January 2025,It was reported that former U.S. House Speaker Nancy Pelosi has acquired call options on Tempus AI.

This investment action is considered to indicate a high regard for the innovation that the convergence of AI technology and medicine can bring and for the growth potential of Tempus AI. After Pelosi's investment, the company's stock price soared, attracting even more attention from the market.

Tempus AI's efforts to promote personalized medicine by analyzing vast amounts of genomic data using AI technology has the potential to revolutionize the future of medicine and has attracted interest from investors and the market.

What are the sectors, industries, and themes that Tempus AI (TEM) belongs to?

sector

Healthcare:.Tempus AI belongs to the healthcare sector and supports the provision of personalized medicine through the collection and analysis of medical data using AI technology.

type of industry

Life Sciences Tools & Services:.The company provides genomics analysis and AI applications to develop advanced data analysis services for medical institutions and pharmaceutical companies.

Themes belonging to

Integrating Medical AI and Precision Medicine: Tempus AI will advance the integration of AI technology and medical data to enable the proposal of optimized treatments for each patient. This will support the digital transformation of the healthcare sector and create a next-generation healthcare delivery model.

Dividends?

Tempus AI (TEM) does not pay dividends.

The company is in a growth phase and its strategy is to reinvest earnings in R&D and business expansion.

Who are Tempus AI's (TEM) competitors?

Tempus AI's (TEM) main competitors are.

• Illumina (ILMN):A leading U.S.-based genome sequencing technology company. Provides advanced genetic analysis equipment and competes with Tempus AI in the field of genome analysis. In particular, the company contributes to medical research and diagnostics through its next-generation sequencing technology.
• Guardant Health (GH):U.S. medical technology company. Competes with Tempus AI by offering a cancer diagnostic solution that utilizes liquid biopsy technology. In particular, the company enables non-invasive early detection and monitoring of cancer through blood tests.
• Foundation Medicine (FMI):A U.S. cancer genome profiling company. Competes with Tempus AI by providing comprehensive genome analysis services. In particular, it supports the realization of personalized medicine by analyzing genetic mutations of cancer patients in detail.
• Cartel Health (QDEL):U.S. diagnostic medical technology company. Provides molecular diagnostic and immunodiagnostic technologies and competes with Tempus AI in the area of medical data utilization. Has strengths in diagnosing infectious diseases, cancer, and cardiovascular diseases.
• Exact Science (EXAS):A U.S. molecular diagnostics company. Competes with Tempus AI by providing testing technology for early detection of colorectal and prostate cancer. Promotes personalized medicine through non-invasive DNA testing technology.

What is the size and growth potential of the industry to which Tempus AI (TEM) belongs?

Tempus AI belongs toPrecision Medicine and Medical AI Industryhas experienced rapid growth in recent years. The market size continues to expand and is expected to continue to grow at a high rate in the future due to the personalization of medical care and the increased use of data.

Growth prospects for the precision medicine market

The precision medicine market, as of 2021Approximately $57.69 billionThe scale of the company's business has reached the size ofExpand to approximately $154.91 billion by 2030The number of people who have been living in the area is expected to increase.
The market is expected to continue to expand, with a compound annual growth rate (CAGR) of 11.51 TP3T.

Growth potential of the medical AI market

The artificial intelligence (AI) market in the healthcare sector is also experiencing significant growth.

• The market size in 2024 isApproximately $27.69 billion
• Projected to reach approximately $490.96 billion by 2032
• CAGR of 43.21 TP3T, an extremely high growth rate

The use of AI in medical diagnostics is particularly prominent,In the Japanese market, revenues are expected to increase from approximately $82.3 million to approximately $398.9 million between 2023 and 2032.The first is.
CAGR is 19.171 TP3Tand the demand for medical AI is increasing in the domestic market as well.

Key Factors Supporting Market Growth

The following points can be identified as factors supporting the expansion of the medical AI market

1. Increased volume of medical data:A vast amount of data is accumulated daily in the healthcare industry, and AI analyzes this data and provides useful information to healthcare professionals, thereby improving the quality of healthcare. It will contribute to the realization of personalized medicine and faster diagnosis.
2. Emergence of a global challenge:The COVID-19 pandemic highlighted the challenges faced by the medical field; AI can help respond to crises such as pandemics by reducing the burden on healthcare providers and enabling more efficient healthcare delivery.
3. Aging population:As the global population ages, there is concern about rising healthcare costs; AI can help curb healthcare costs by providing support for preventive medicine and health management. In particular, early detection of chronic diseases and personalized treatment are expected to be realized.
4. Shortage of medical personnel:Many countries are facing a growing shortage of medical personnel; AI can help doctors and nurses optimize medical resources by assisting them in their work, automating diagnoses, and managing patient data more efficiently.
5. Advances in Technology:Developments in AI technology have led to medical applications in areas such as image recognition, natural language processing (NLP), and machine learning. This has enabled improved diagnostic accuracy and optimized treatment, accelerating medical innovation.
6. Support from national governments:Governments are promoting policies to boost the growth of the AI healthcare market. In particular, in the U.S. and Europe, subsidies and deregulation for the development and implementation of medical AI are in progress, further accelerating the growth of the market.

Tempus AI's Market Position

Against the backdrop of these market growth factors, Tempus AI will provide AI-based precision medicine services,We are in a position to capture business opportunities in growing markets.
The company is increasing its influence within the industry by promoting medical data analysis, the provision of personalized medicine, and the improvement of diagnostic accuracy.

The precision medicine and medical AI markets, of which Tempus AI is a part, are expected to continue to experience significant growth.
These factors are accelerating market expansion, and Tempus AI is positioning itself as a future leader in healthcare by providing AI-based precision medical solutions in this growing market.

What are the differentiating factors and advantages of Tempus AI (TEM) over the competition?

Tempus AI has the following differentiators and advantages over traditional precision medicine companies

Realization of personalized treatment through multilayered data integration

Its strength lies in its ability to integrate a wide variety of data, including patient genetic information, clinical data, and diagnostic imaging information, enabling integrated analysis. This allows the company to quickly propose the optimal treatment for each individual patient.

Utilization of our proprietary AI platform "Next

Next, an AI platform based on machine learning, is used to identify treatment gaps and provide clinical decision support. Highly accurate algorithms improve the reliability of diagnosis and treatment selection.

Strategic Partnerships and Achievements

The company's advantage lies in the fact that it promotes technological innovation and market expansion through alliances with industry-leading companies such as the SoftBank Group. This has accelerated the speed of R&D and commercialization.

Close collaboration with clinical sites

The company provides solutions that enable rapid data analysis and treatment proposals in the medical field, which are highly valuable in actual clinical settings. As a result, the company has earned the trust of physicians and medical institutions.

These factors differentiate Tempus AI from its competitors and make it a leader in the precision medicine field.

Performance of Tempus AI (TEM)

The financial year of Tempus AI (ticker: TEM) ends on December 31.

The quarterly schedule of financial results announcements is as follows

• First Quarter ResultsLate May
• Second Quarter Financial ResultsEarly August
• Third Quarter ResultsEarly Nov.
• Fourth Quarter and Full Year ResultsLate February of the following year

First, we will review the following four indicators for conducting a minimum performance analysis of Tempus AI (TEM).

1. Sales:An indicator of a company's performance and growth.
2. Operating cash flow and operating cash flow margin:An indicator that looks at how much cash a company generates from its services. Margins are considered excellent when they are 15% of that ratio.
3. Operating Income:Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. Free Cash Flow:Free cash that a company keeps on hand. Indicates financial flexibility and business stability.
5. EPS:An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the profitability.

Each data is,Investing.com, ,TradingViewSee from

Tempus AI (TEM) Stock Price

View the current real-time stock price chart (TradingView) for Tempus AI (TEM).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Tempus AI (TEM) Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

Tempus AI (TEM) Quarterly: Operating Cash Flow and Free Cash Flow Trends

Quarterly operating cash flow, operating cash flow margin and free cash flow.

Each transition is shown in the graph below.

Tempus AI (TEM) Quarterly: Operating Income and Operating Margin Trends

Quarterly operating income and operating margin trends.

Each transition is shown in the graph below.

Tempus AI (TEM) Quarterly:EPS Change

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

Tempus AI (TEM) Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

Tempus AI (TEM) Full Year: Operating Cash Flow and Free Cash Flow Trends

Operating cash flow, operating cash flow margin and free cash flow for the full year.

Each transition is shown in the graph below.

Tempus AI (TEM) Full Year: Operating Income and Operating Margin Trends

The following is a trend of operating income and operating income margin for the full year.

Each transition is shown in the graph below.

What are the future lives and prospects of Tempus AI (TEM)?

The following points can be made about the future of Tempus AI (TEM) and its prospects

Performance and Market Valuation

Tempus AI generated revenues of approximately $531.82 million in 2023, a significant increase from $320.66 million the previous year.

Meanwhile, the net loss was approximately $214.12 million. Analysts have a $58.60 price target for the stock, with a high of $74.00 and a low of $50.00 projected.

Strategic Partnerships

In June 2024, SB TEMPUS, a joint venture with the SoftBank Group, was established to develop business in the Japanese market.
Through this partnership, Tempus AI's services are expected to be utilized by medical institutions in Japan.

Innovation and Regulatory Approval

Tempus AI continues to innovate, including receiving FDA approval for its AI-based atrial fibrillation risk assessment device, Tempus ECG-AF.

This is expected to further advance the use of AI in the medical field.

Investor Interest

Investor attention has also increased, with some analysts raising their price targets for Tempus AI based on its growth potential.

Tempus AI (TEM) Q3 2024 Financial Summary

Date of announcement: 24/11/05

Sales and Revenues

• Total SalesUS$180.9 million (vs. same period of the previous year)33.0% increase)
• Genomics Division SalesUS$116.42 million (vs. same period of the previous year)20.31 TP3T increase)
• Data and Services SalesUS$64.5 million (vs. same period of previous year)64.41 TP3T increase)
  • Data Licensing Revenue (Insights)Year-on-year change86.61 TP3T increase

grace (of God, Buddha, etc.)

• GAAP net loss:75.84 million U.S. dollars(Deficit widened from the same period of the previous year)
  • breakdownIncludes stock-based compensation expense and related tax expense of $22.2 million
• Adjusted EBITDA:-21.84 million dollars(Improvement from the same period of the previous year)

Cash Flow

• Operating Cash Flow:115 million dollars
• free cash flow:Approximately $125 million
• Cash and marketable securities:466.3 million dollars

Significant Business Developments

1. Announced the acquisition of Ambry Genetics
   • Acquisition of Ambry Genetics, a leading genetic testing company, for $600 million
   • Strengthening our reach into the genetic disease and cancer screening markets
   • Projected to generate over $300 million in sales and $40 million in EBITDA in 2024
2. Partnership with BioNTech
   • Promoting collaborative research on next-generation cancer treatment using TCR data
3. Contract extension with Merck
   • Renewed 3-year strategic alliance with Merck EMD
4. Introduction of AI Technology
   • Beta release of Olivia application for patients
   • Deploying an AI platform to help organize and manage medical data

Future Guidance

• Sales Forecast for Full Year 2024US$700 million (vs. previous year)32% increase)
• Adjusted EBITDA: -$105 million (a $50 million improvement over the previous year)
• Growth Strategy for 2025
  • Increase in sales and profit from integration of acquired Ambry Genetics
  • Expansion of AI utilization platform for biopharmaceutical companies
  • Expand medical data business by strengthening new alliances

Tempus AI continues to grow steadily as a leader in precision medicine using AI technology. In particular, it has entered the genetic testing market through the acquisition of Ambry Genetics and is expected to expand its data and services business.
Growth is expected to accelerate beyond 2025 as the company strengthens alliances with major companies such as BioNTech and Merck.

Which brokerage firms can I buy Tempus AI (TEM) shares?

The following is a list of major brokerages that offer Tempus AI (TEM) shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

Some stocks handled may not be available for purchase. In such cases, CFDs may be used at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Tempus AI's (TEM) business, its unique strengths and competitive advantages.

Tempus AI is a company with significant growth potential in the field of precision medicine, thanks to its unique approach to integrating AI and healthcare data.

While building a data-driven culture, we are expanding our partnerships with medical institutions and pharmaceutical companies to build a strong customer base.

Through the acquisition of Ambry Genetics, we are also strengthening our genetic testing services and further expanding our market.
With these initiatives, Tempus AI is expected to continue to drive innovation and growth in the healthcare domain.