The company's initial public offering (IPO) was priced at $37 per share, at the top end of its price range, generating nearly $411 million and securing a fully-diluted valuation of over $6 billion.

Tempus, which had a previous private valuation of $8.1 billion and was estimated to be valued at $10.25 billion in late 2022, closed its first day of trading at $40.25 per share, up by nearly 9% from the IPO price. Despite the discount from its prior valuation, the successful IPO is particularly remarkable given the current lukewarm environment for public offerings.

Although Tempus reported revenues of $531 million in 2023, it also incurred a net loss of $290 million. However, the company has shown significant progress in reducing its operating losses, decreasing from 83% in 2022 to 37% in 2023. Eric Lefkosky, the founder of Tempus, expressed optimism, stating that he expects the company to achieve positive cash flow and EBITDA (earnings before interest, taxes, depreciation, and amortization) by 2025.

The inspiration behind Tempus came when Lefkosky observed the lack of reliance on data in his wife's breast cancer treatment. Consequently, he embarked on establishing a company that utilizes technology and genomic sequencing data for medical purposes. Tempus is now positioning itself as an AI company, intending to integrate artificial intelligence across its diagnostic tools, despite AI revenue contributing only $5.5 million, or roughly 1% of its 2023 total revenue. The company acknowledges that its AI product line is still in its infancy.

Eric Lefkosky holds the majority stake in Tempus, with 30.1% ownership of the company and 65% of shareholder voting power due to a dual-class share structure. Kimberley Keywell, former wife of Brad Keywell, Lefkosky's long-time business partner, owns a 10.2% stake in the company. Scottish asset manager Baillie Gifford also holds 5.9% of Tempus, valued at $350 million based on the IPO price. Other early shareholders include NEA, Revolution, and T. Rowe Price. Additionally, Tempus secured a $200 million Series G5 funding round led by SoftBank in April.

This marks the fourth company that Eric Lefkosky has taken public, with his most notable success being Groupon, which had a valuation of almost $13 billion at its 2011 IPO but now trades at under $600 million.

Tempus' strong Nasdaq debut and impressive valuation reflect the growing importance of genomic testing and data analysis in the medical field. With its focus on incorporating AI into diagnostics tools, the company aims to revolutionize patient care and treatment decision-making.