Tempus AI (TEM) Morgan Stanley Technology, Media & Telecom Conference summary

Business model and strategic focus

• AI-enabled diagnostics are central, integrating clinical and molecular data to support physician decision-making.

• Three main business lines: genomics (sequencing), data licensing, and applications (apps) for healthcare insights.

• Built proprietary connections to 3,000+ U.S. hospitals, enabling unique data aggregation and distribution.

• Data business has nearly $1B in licensing agreements, with 250+ biopharma clients.

• Applications business is small in revenue but seen as a major future growth driver.

Hospital and data relationships

• Convincing hospitals to share patient-level data required demonstrating high value and building trust over a decade.

• Data aggregation is a slow, individualized process, likened to “mowing 3,000 lawns.”

• Proprietary data and distribution are key competitive advantages, with ongoing expansion of hospital connections.

• Applications business expected to become the majority of revenue in the next decade as data and distribution scale.

• Signed distribution deals with third-party model developers, leveraging hospital network.

Genomics and testing strategy

• Genomics is the largest revenue source, with clear reimbursement and recent expansion via Ambry acquisition.

• Focused on three cancer data buckets: hereditary risk, therapy selection, and disease monitoring.

• Investments made to cover all major molecular data types for comprehensive insights and applications.

• Real-time EHR integration enables detection and correction of care deviations at scale.

• Declining genome sequencing costs and personalized therapies are accelerating precision medicine adoption.