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Tempus Reports Second Quarter 2024 Results

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.

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.

 

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