Tempus AI (TEM) 24th Annual Needham Virtual Healthcare Conference summary

Business overview and strategy

• Focuses on AI-driven precision medicine, integrating intelligent diagnostics, genomics, data licensing, and AI applications.

• Leverages a robust technology platform and hospital EHR integrations to tailor diagnostics and aggregate clinical data.

• Data licensing business monetizes de-identified patient data for pharma partners, aiding drug discovery.

• AI applications match patients to clinical trials and close care gaps, though currently a small revenue contributor.

• Platform built to ingest, harmonize, and utilize diverse data modalities for multiple stakeholders.

Regulatory and macro environment

• New administration's policies on AI seen as favorable for data-driven healthcare innovation.

• Agency turnover and FDA restructuring are being monitored, but no significant business impact anticipated.

• Tariff changes are under evaluation, with no expected material effects.

Genomics business performance and outlook

• Genomics, mainly oncology-focused, comprised about two-thirds of revenue and drove top-line growth.

• Main offerings include therapy selection (solid tumor, liquid biopsy), inherited cancer screening, and MRD testing.

• Therapy selection is the largest revenue driver; MRD growth expected as reimbursement improves.

• Market share gains attributed to data integration and intelligence layer in diagnostics.

• Only about one-third of cancer patients currently receive genetic testing, with significant runway for growth as this expands.