Tempus AI Inc. (NASDAQ:TEM) shares were trading higher on Monday after the company reported third-quarter adjusted earnings of 7 cents per share, swinging from a loss of 8 cents, beating the consensus per-share loss of 11 cents.
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Diagnostics And Data Applications Fuel Revenue Growth
Revenues jumped 23% from the prior-year quarter to $411.54 million, beating the consensus of $409.35 million. “Q3 was another record quarter,” Tempus CEO Eric Lefkofsky said.
Diagnostics posted revenue of $303.5 million, driven by Oncology volume growth of 32% and offset by Hereditary revenue growth of 3%.
Data and Applications generated revenue of $108.1 million, up 33% growth, with Insights rising 29%.
Multi-Year Collaborations
Lefkofsky said on an earnings call the company entered into a strategic collaboration with Bristol Myers Squibb Co. (NYSE:BMY) to license Bristol Myers’ oncology data and models for up to $137.5 million over five-years.
Meanwhile, Bristol Myers, Pathos, and Tempus AI entered into a collaboration to build datasets and models for Alzheimer’s disease. Through this collaboration, Pathos is paying Tempus AI $55 million over a five-year term.
As a result, over the next approximately five years, the company expects to generate $192.5 million of additional data and applications revenue from these agreements alone.
“Tempus AI is uniquely positioned as we have strategically amassed the data needed to power these models and the distribution platform to deliver them to patients,” Lefkowsky said on the earnings call.
TEM Price Action: Tempus AI shares were up 10.55% at $79.84 on Monday, according to Benzinga Pro data.
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