Tempus, the genomic testing and data analysis company created by Eric Lefkowski, who previously founded Groupon, debuted on the Nasdaq on Friday, rising about 15% at the open.
The company priced its initial public offering on Thursday at $37 per share, the top of the $35 to $37 price range, raising approximately $411 million At a fully diluted valuation of more than $6 billion. However, Tempus’ last official private valuation was $8.1 billion, and PitchBook data estimates the company is worth $10.25 billion in late 2022.
Despite the significant discount from the previous valuation, the IPO is an achievement for an unprofitable company during what is considered a tepid time to launch public offerings. Tempus had revenues of $531 million in 2023 with a net loss of $290 million. But the company’s operating losses narrowed from 83% in 2022 to 37% in 2023, and Lefkowski told CNBC he expects Tempus to have cash flow and EBITDA positive in 2025.
Lefkofsky founded Tempus in 2015, after noticing that doctors were not relying on data while treating his wife for breast cancer. He set out to build a company that used technology and data from genetic sequencing.
Tempus is now trying to position itself as an AI company, even though AI revenue only represented $5.5 million in revenue, roughly 1% of its 2023 revenue. The company said in its prospectus that its proprietary AI product line It’s still new, but it intends to “integrate AI, including generative AI” into every aspect of its diagnostic tools.
Lefkofsky is by far the company’s largest shareholder. According to S1, he owns 30.1% of the company and 65% of the voting rights of shareholders, due to the two-class share structure. The company, controlled by Kimberly Kewell, the ex-wife of Brad Kewell, Lefkosvky’s longtime business partner, holds a 10.2% stake in Tempus. Scottish asset manager Baillie Gifford owns 5.9% of the company, valued at $350 million at the IPO price.
Early contributors to Tempus include NEA, Revolution, and T. Rowe Price. The company raised a $200 million Series G5 from SoftBank in April. Tempus is the fourth company Lefkofsky has taken public. He is best known for founding Groupon, which went public at a valuation Nearly $13 billion in 2011But it is now trading for less than $600 million.
Tempus is the fourth company Lefkofsky has taken public. He is best known for founding Groupon, which went public at a valuation Nearly $13 billion in 2011But it is now trading for less than $600 million.