Tempus, a genomic testing and knowledge analytics firm based by Eric Lefkosky, who beforehand based Groupon, debuted on Nasdaq on Friday, opening up about 15%.
The corporate priced its IPO on Thursday at $37 a share, on the high of the $35 to $37 value vary, elevating almost $411 million and valuing it at greater than $6 billion on a completely diluted foundation. Nonetheless, Tempus’ newest official personal valuation is $8.1 billion, and PitchBook knowledge estimates the corporate’s valuation on the finish of 2022 at $10.25 billion.
Though its valuation is at a steep low cost to its earlier valuation, the IPO is a feat for a corporation that has but to show a revenue throughout a interval thought of to be lukewarm for public choices. Tempus’ income in 2023 will likely be US$531 million, with a internet lack of US$290 million. However the firm’s working losses have shrunk from 83% in 2022 to 37% in 2023, and Lefkowsky instructed CNBC that he expects Tempus to be money circulate and EBITDA optimistic by 2025.
Lefkofsky based Tempus in 2015 after noticing that docs weren’t counting on knowledge throughout his spouse’s therapy for breast most cancers. He got down to construct an organization utilizing genome sequencing expertise and knowledge.
Tempus is at the moment attempting to place itself as an AI firm, though AI income solely accounts for $5.5 million of its complete income, or about 1% of its 2023 income. The corporate mentioned in its prospectus that its synthetic intelligence product line remains to be in its infancy, however that it intends to “embed synthetic intelligence, together with generative synthetic intelligence,” into each side of its diagnostic instruments.
Lefkofsky is by far the corporate’s largest shareholder. In keeping with S1, he holds 30.1% of the corporate’s shares and 65% of shareholder voting rights as a result of dual-class share construction. The corporate is managed by Kimberley Keywell, the ex-wife of Levkowsky’s longtime enterprise accomplice Brad Keywell, who owns 10.2% of Tempus. Scottish asset administration firm Baillie Gifford holds a 5.9% stake within the firm, price $350 million on the IPO value.
Tempus’ early shareholders embody NEA, Revolution and T. Rowe Worth. The corporate raised $200 million in Collection G5 funding from SoftBank in April. He’s finest recognized for founding Groupon, which went public in 2011 at a valuation of almost $13 billion however now trades for lower than $600 million.
Tempus is Levkowsky’s fourth firm to go public. He’s finest recognized for founding Groupon, which went public in 2011 at a valuation of almost $13 billion however now trades for lower than $600 million.
