Latest news with #xM
Yahoo
15-07-2025
- Business
- Yahoo
Tempus AI Raises 2025 Financial Outlook: What's Backing It?
Tempus AI TEM expects full-year 2025 revenues of $1.25 billion (up from the previous $1.24 billion guidance), which represents approximately 80% annual growth. The company also expects adjusted EBITDA of $5 million for the full year of 2025, an improvement of approximately $110 million over 2024. Robust First-Quarter Performance: Total sales in the first quarter amounted to $255.7 million, which grew 75.4% year over year. Quarterly gross profit increased 99.8% year over year, reaching $155.2 million. The gains were fueled by lab efficiencies, increased adoption of AI tools like Tempus One and xM and a higher mix of data services. These improvements narrowed down adjusted EBITDA loss to $16.2 million, from $43.9 million a year ago. Strategic Collaborations With AstraZeneca & Pathos: Tempus signed a three-year, $200 million data and modeling license agreement with AstraZeneca (AZN) and Pathos to build a multimodal foundation model in oncology, leveraging more than 300 petabytes of rich multimodal healthcare data that Tempus has built over the past decade. Notably, the deal raised the total remaining contract value to greater than $1 billion as of April-end. Upside in Hereditary Testing: Hereditary testing revenues hit $63.5 million on 23% volume growth, outpacing the first-quarter guidance. This growth was driven by the acquisition of Ambry Genetics, a recognized leader in genetic testing. The company anticipates long-term potential in this business beyond oncology, extending to cardiovascular, Alzheimer's and other genetic predispositions. For full-year 2025, Exact Sciences EXAS anticipates total revenues in the range of $3.070-$3.120 billion (previously $3.025-$3.085 billion). The adjusted EBITDA forecast is updated to the $425-$455 million band (up from the earlier range of $410-$440 million). A major catalyst for the guidance hike was the successful launch of Cologuard Plus, the company's next-generation colorectal cancer screening test. The test has already seen rapid adoption, with over 30,000 completed tests. TEM reported first-quarter revenues of $706.8 million, marking a 10.9% year-over-year increase. Adjusted EBITDA surged 61%, while free cash flow reached breakeven, an improvement of $120 million from the prior year. These results gave management the confidence to raise its full-year outlook. Exelixis EXEL raised its full-year 2025 financial guidance following strong first-quarter results, driven by higher demand for CABOMETYX and the recent U.S. FDA approval for its use in treating advanced neuroendocrine tumors (NET). The company expects total revenues in the range of $2.25-$2.35 billion (up from the earlier guidance range of $2.15-$2.25 billion). A major factor behind this upward revision was the FDA approval in March 2025 of CABOMETYX for the treatment of advanced pancreatic and extra-pancreatic NET, making it the first and only systemic treatment approved for previously treated NET regardless of tumor site or grade. Additionally, TEM is optimistic about several upcoming clinical milestones in the second half of the year, including pivotal trial readouts for its next-generation therapy zanzalintinib in colorectal and non-clear cell renal cancers. These developments reinforce Exelixis' strategy to expand its oncology portfolio and transition into a multi-franchise cancer company. In the past year, Tempus AI shares have surged 58.6%, outperforming the industry's 16.8% growth and the S&P 500 composite's 11% improvement. Image Source: Zacks Investment Research TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 7.09X compared to the industry average of 5.82X. Image Source: Zacks Investment Research Earnings estimates for Tempus AI in 2025 and 2026 are showing a mixed picture. Image Source: Zacks Investment Research TEM stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelixis, Inc. (EXEL) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-07-2025
- Business
- Yahoo
Tempus AI Revenues & Profit Rise: What to Expect Ahead of Q2 Release
Tempus AI TEM is entering a phase of strong operating momentum, backed by significant acceleration in both revenues and gross profit. This trend became particularly clear in the company's last two reported quarters, which showed Tempus AI's transformation from a high-growth precision medicine startup to a scalable enterprise AI and diagnostics company with improving margins and profitability trends. In the fourth quarter of 2024, Tempus AI reported 35.8% year-over-year revenue growth, with gross profit rising 49.7%, driven by strong performance in its high-margin Data and Services segment. Momentum continued into the first quarter of 2025, as revenues grew 34% and gross profit climbed 45%, lifting gross margin from 42.5% to 44.5%. The gains were fueled by lab efficiencies, increased adoption of AI tools like Tempus One and xM and a higher mix of data services. These improvements also narrowed adjusted EBITDA losses by 61% sequentially. The company's upcoming second-quarter 2025 earnings release is expected to once again reflect margin expansion and sequential gains in adjusted EBITDA, driven by the adoption of new offerings such as Tempus One in EHR systems and the xM liquid biopsy assay. Any upward revision to guidance or increase in contract value, particularly from large enterprise deals, could strengthen the momentum seen in the first few months of the year. Given its strong margins and growing enterprise traction, Q2 performance could solidify Tempus AI's position as a rare AI-healthcare company combining high growth with improving financial discipline. Image Source: Zacks Investment Research Guardant Health GH: As a major player in blood-based cancer diagnostics, GH recently introduced Guardant Reveal, its latest minimal residual disease assay, now available for clinical research and under coverage review by major payors. Further, Guardant Health's Shield multi-cancer detection test recently received FDA Breakthrough Device designation, highlighting its strong clinical potential and regulatory momentum. In the first quarter of 2025, improved test sensitivity and cost efficiencies led to positive gross margins for both Reveal and Shield assays. Natera NTRA: It posted strong first-quarter 2025 results with 36.5% revenue growth and gross margin expansion to 63.1%. Positive cash flow and expanded Medicare coverage for its Signatera MRD assay, now including NSCLC and pan-cancer immunotherapy monitoring, position Natera to tap into a new multi-hundred-million-dollar market. Backed by robust ASCO data, Natera remains a high-growth peer in personalized oncology. The Zacks Consensus Estimate for Tempus AI's 2025 earnings implies a 56.3% improvement year over year. Image Source: Zacks Investment Research TEM currently trades at a forward 12-month Price-to-Sales (P/S) of 7.52X compared with the industry average of 5.8X. Image Source: Zacks Investment Research Tempus AI currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Natera, Inc. (NTRA) : Free Stock Analysis Report Guardant Health, Inc. (GH) : Free Stock Analysis Report Tempus AI, Inc. (TEM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Wire
02-06-2025
- Business
- Business Wire
Tempus Introduces xM, An Assay to Monitor Immunotherapy Response for Patients with Advanced Cancers
CHICAGO--(BUSINESS WIRE)--Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today announced xM for treatment response monitoring (TRM), a liquid biopsy assay intended to detect molecular response to immune-checkpoint inhibitor (ICI) therapy in advanced solid tumors. xM for TRM is the newest addition to Tempus' growing portfolio of sensitive assays for monitoring molecular response and minimal residual disease (MRD). It is currently available for research use only, with clinical availability expected later this year. In 2023, an estimated 56.55% of patients with advanced or metastatic cancers were eligible for ICIs, with a corresponding estimated response rate of 20.13%. 1 xM for TRM is designed to quantify changes in circulating tumor DNA (ctDNA) longitudinally from a blood sample, enabling early molecular response assessment in patients with advanced cancers receiving immunocheckpoint inhibitors (ICI) alone or combination therapies. xM for TRM leverages a unique multi-parametric algorithm, integrating copy number variations (CNVs), along with somatic and germline variant allele frequencies (VAFs), for a comprehensive and robust estimation of circulating tumor fraction. Tempus is presenting new data on xM for TRM at the 2025 American Society of Clinical Oncology (ASCO®) Annual Meeting, highlighting the assay's potential to help clinicians monitor response and refine treatment strategies for patients with advanced cancers. Title: A molecular biomarker for longitudinal monitoring of therapeutic efficacy in a real-world cohort of advanced solid tumors treated with immune checkpoint inhibitors Date/Time: Location: Poster Section Developmental Therapeutics—Immunotherapy (Poster #205) Overview: Tempus xM for TRM, a liquid biopsy test, monitors treatment response by tracking ctDNA dynamics over time. Longitudinal non-molecular responders are associated with worse survival compared to molecular responders, highlighting the value of xM molecular response monitoring as a tool to guide ICI treatment decisions. 'Our comprehensive monitoring portfolio is designed to support patients throughout the cancer treatment journey,' said Halla Nimeiri, MD, Chief Development Officer at Tempus. 'We're excited to introduce a new assay of molecular response for both physicians and biopharma researchers that can timely track changes of quantitative tumor fraction while patients receive ICI therapies. This may impact treatment decisions, especially for patients with advanced disease, where timing is absolutely critical. With xM for TRM, clinicians can detect molecular response to ICI prior to six weeks into treatment, enabling them to stay ahead of disease progression and optimize therapeutic strategies.' 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 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, statements regarding the potential impact of xM TRM and other tests, the indicated use of the xM TRM and other tests for potential clinical use, and the timing of the availability of such testing, are forward-looking statements. 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: 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' Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ('SEC') on February 24, 2025, as well as in other filings Tempus may make with the SEC in the future. 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.
