Tempus AI, a health-care diagnostics company that uses AI to interpret medical tests to help physicians provide more accurate treatment for their patients, rose by as much as 15% in its Nasdaq Stock Market trading debut on Friday, after going public under the ticker symbol “TEM.”
Tempus AI priced 11.1 million shares at $37 apiece on Thursday, at the top of its initial $35 to $37 target range. The company raised $410 million at an implied valuation of just over $6 billion. Its early gains, if they hold, would place the company at a valuation of roughly $7 billion.
Tempus believes that AI can help guide therapy selection and treatment decisions, in conjunction with the patient’s doctor. It generated total revenue of $531.8 million in 2023 and a net loss of $214.1 million.
“We’re on a really good trajectory,” Tempus AI CEO Eric Lefkofsky said on CNBC’s “Squawk Box” Friday morning before shares started trading. “As revenues have been growing quickly, we’re not investing all that gross profit dollar growth back into the business. We’re generating improved leverage every quarter,” he said, adding that he expects the company to be both cash flow and EBITDA positive within the next year.
