Tempus Reports Third Quarter 2024 Results and Agreement to Acquire Ambry Genetics

Tempus AI, Inc. (NASDAQ: TEM), a technology company leading the adoption of AI to advance precision medicine and patient care, today reported financial results for the quarter that ended September 30, 2024. The company also announced that it has entered into an agreement to acquire Ambry Genetics, a leader in genetic testing that aims to improve health by understanding the relationship between genetics and disease.

Revenue increased 33.0% year-over-year to $180.9 million in the third quarter of 2024
Data and services revenue growth accelerated to 64.4% year-over-year
Genomics unit growth accelerated to 23.9% annually with rising average revenue per clinical test
Net Loss of $(75.8 million), which included $22.2 million of stock compensation expense and related employer payroll taxes
Adjusted EBITDA improved $14.4 million year over year to $(21.8 million)
Expect full year 2024 revenue of ~$700 million, which represents ~32% annual growth

For additional information on the quarter, including a letter from our CEO and CFO, please visit our investors relations site at investors.tempus.com.

“The overall business performed well in the quarter, as demonstrated by accelerating volume growth in our genomics business and accelerating revenue growth in our data and services business, specifically within Insights,” said Eric Lefkofsky, Founder and CEO of Tempus. “We’re also excited to announce the pending acquisition of Ambry Genetics, which broadens our testing portfolio, expands our disease coverage, and enhances the types of products we can offer to our biotech and pharmaceutical partners. In addition, Ambry is uniquely positioned given that its revenues are currently growing at north of 25% a year and it generates meaningful EBITDA and cash flow.”

Third Quarter 2024 Financial Results

Three Months Ended September 30,

2024

2023

Change

(in thousands, except percentages)

(unaudited)

GAAP Results

Revenue

180,929

136,057

33.0

Genomics gross margin

48.4

51.9

NM(1)

Data and services gross margin

76.8

60.5

NM(1)

Operating expenses

159,455

118,816

NM(1)

Net loss

(75,840

)

(53,426

)

NM(1)

Non-GAAP Results

Non-GAAP Genomics gross margin

49.3

51.9

(260 bps)

Non-GAAP Data and services gross margin

78.3

60.5

1780 bps

Non-GAAP Operating Expenses

139,284

118,816

17.2

Adjusted EBITDA

(21,843

)

(36,206

)

39.7

_______________

(1) Not meaningful due to the impact of including stock compensation expense and related employer payroll taxes

Genomics revenue of $116.4 million in the third quarter of 2024, an increase of $19.6 million or 20.3% over the third quarter of 2023, with 23.9% unit growth.
Data and services revenue of $64.5 million in the third quarter of 2024, an increase of $25.3 million or 64.4% over the third quarter of 2023.
Non-GAAP Genomics gross margin was 49.3% in the third quarter of 2024, compared to 51.9% in the third quarter of 2023, largely related to one-time cash payments in 2023.
Non-GAAP Data and services gross margin was 78.3% in the third quarter of 2024, compared to 60.5% in the third quarter of 2023, led by Insights, or data licensing revenue, which grew 86.6% year over year.
Net Loss of $(75.8 million), which included $22.2 million of stock compensation and related employer payroll taxes compared to net loss of $(552.2 million) in the second quarter of 2024, including $493.1 million of stock compensation and related employer taxes and net loss of $(53.4 million) in the third quarter of 2023.
Adjusted EBITDA $(21.8 million) in the third quarter of 2024, compared to $(31.2 million) in the second quarter of 2024, and $(36.2 million) in the third quarter of 2023.
Ending cash and marketable securities were $466.3 million.

Additional Operating Highlights

Announced a multi-year first of its kind collaboration with BioNTech to leverage Tempus’ TCR dataset in support of BioNTech’s next-generation oncology pipeline.
Announced a 3 year extension with Merck EMD at the culmination of our last 3 year strategic agreement.
Initiated a collaboration with OneOncology to bring more biomarker-driven trials to patients in the community setting at scale.
Initiated the beta launch of our patient-facing app, Olivia, an AI-enabled personal health locker that empowers individuals to holistically organize, store, and manage their own health data through our generative AI healthcare concierge.

Ambry Genetics Acquisition

Tempus today announced that it has entered into an agreement to acquire Ambry Genetics, a leader in genetic testing. Under the terms of the agreement, Tempus will pay $375 million in cash and $225 million in shares at closing, of which $100 million will be subject to a lock-up agreement until one year post-transaction close. The deal is expected to be financed in part through a $300 million increase in short and long term debt provided by Ares, Tempus’ current lender. Ambry expects to generate >$300 million in revenue in calendar year 2024 and EBITDA of >$40 million. For more information on Ambry and its impact, see Tempus’ latest investor deck.

Ambry is a leader in hereditary cancer screening and currently serves as Tempus’ main reference lab in this category. The acquisition will provide Tempus with expanded testing capabilities for inherited cancer risk. These services are becoming more and more important for healthcare professionals navigating critical medical decisions with cancer patients and their relatives.

In addition to expanding and enhancing the company’s hereditary screening portfolio, the acquisition of Ambry will complement Tempus’ strategy of using data to advance clinical and scientific innovation. Ambry’s extensive product offerings will also allow Tempus to expand into new disease categories, including pediatrics, rare disease, immunology, women’s reproductive health, and cardiology.

Financial Outlook and Guidance

Tempus continues to expect full year 2024 revenue of approximately $700 million, which represents approximately 32% year-over-year growth and approximately $(105 million) in adjusted EBITDA, an improvement of approximately $50 million over 2023.

Webcast and Conference Call Information

A conference call and webcast will begin today, November 4, 2024 after market close at 4:30 p.m. Eastern Time. Interested parties may access details at:

Conference ID: 7177136 Domestic Dial-in Number: (800) 715-9871 International Dial-in Number: (646) 307-1963 Live Webcast: https://edge.media-server.com/mmc/p/btq3mpjc

The webcast may be accessed on the company’s investor relations website at investors.tempus.com. For those unable to listen to the live webcast, a recording will be made available on the company’s website after the event and will be accessible for one year. Visit the investor relations website to find the company’s latest deck, and commentary on the quarter by Eric Lefkofsky, Founder and CEO and Jim Rogers, CFO, which will be discussed on the conference call and webcast.

About Tempus

Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data. For more information, visit tempus.com.

Non-GAAP Financial Measures

In addition to the financial information presented in this release in accordance with accounting principles generally accepted in the United States of America (GAAP), Tempus also presents adjusted non-GAAP financial measures.

Non-GAAP gross profit is defined as GAAP gross profit, excluding stock-based compensation expense and employer payroll tax related to stock-based compensation (collectively, the “stock-based compensation adjustments”). Non-GAAP gross margin is defined as gross profit, excluding the stock-based compensation adjustments, as a percentage of revenue. Non-GAAP operating expenses are calculated as the sum of technology research and development expense, research and development expense, and selling, general and administrative expense, excluding the stock-based compensation adjustments. Non-GAAP net income (loss) is defined as net income (loss), adjusted to exclude (i) losses on equity method investments, (ii) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (iii) the payment of $2.3 million of our Series G-4 convertible preferred stock in connection with the initial public offering (the “G-4 Special Payment”), and (iv) amortization of deferred other income from our IP License Agreement with SB Tempus. Non-GAAP net income (loss) per share is defined as adjusted net income (loss) divided by weighted average common shares outstanding, basic and diluted.

EBITDA is defined as net income (loss), adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, and (iv) provision for (benefit from) income taxes. Adjusted EBITDA is defined as net income (loss), adjusted to exclude (i) interest income, (ii) interest expense, (iii) depreciation and amortization, (iv) provision for (benefit from) income taxes, (v) losses on equity method investments, (vi) changes in fair value of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities and indemnity-related holdback liabilities, (vii) stock-based compensation expense, (viii) employer payroll tax related to stock-based compensation expense, (ix) the G-4 Special Payment, and (x) amortization of deferred other income from our IP License Agreement with SB Tempus. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue.

Tempus believes these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by institutional investors and the analyst community to help them analyze the health of Tempus’ business. In particular, Adjusted EBITDA is a key measurement used by Tempus management to make operating decisions, including those related to analyzing operating expenses, evaluating performance, and performing strategic planning and annual budgeting. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

Tempus does not provide guidance for net loss, the most directly comparable GAAP measure to EBITDA and Adjusted EBITDA, and similarly cannot provide a reconciliation between Ambry's forecasted EBITDA and its net income (loss) or between Tempus' forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of reliable estimates for certain components of net income (loss) and the respective reconciliations. These forecasted items are not within Tempus’ or Ambry's control, as applicable, may vary greatly between periods and could significantly impact future financial results.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, about Tempus, Ambry and their respective industries that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including, but not limited to, Tempus’ expected financial results for full year 2024 and Ambry's expected financial results for calendar year 2024; the contributions of Tempus’ research and findings to the larger scientific community, the use of Tempus’ products and services to advance clinical care for patients, and the pending acquisition of Ambry. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Tempus cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Tempus has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends that it believes may affect Tempus’ business, financial condition, results of operations and prospects. These forward-looking statements are subject to risks and uncertainties related to: the intended use of Tempus’ products and services; Tempus’ financial performance; the ability to attract and retain customers and partners; managing Tempus’ growth and future expenses; competition and new market entrants; compliance with new laws, regulations and executive actions, including any evolving regulations in the artificial intelligence space; the ability to maintain, protect and enhance Tempus’ intellectual property; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures or investments, including our ability to consummate the acquisition of Ambry Genetics and the related financing on the terms described herein or at all and, if consummated, to realize the expected benefits of such acquisition; the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in the section titled “Risk Factors” in Tempus’ Form 10-Q for the quarter ended June 30, 2024 filed with the Securities and Exchange Commission (“SEC”) on August 6, 2024, pursuant to Rule 424(b)(4) under the Securities Act, as well as in other filings Tempus may make with the SEC in the future, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. In addition, any forward-looking statements contained in this press release are based on assumptions that Tempus believes to be reasonable as of this date. Tempus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Advisors

TD Cowen served as the sole financial advisor representing Tempus in the purchase of Ambry Genetics. Morgan Stanley, J.P. Morgan, and Allen & Company LLC represented the company in security financing.

Tempus AI, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(in thousands, except per share amounts)

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Net revenue Genomics

116,422

96,815

331,315

270,797

Data and services

64,507

39,242

161,403

113,301

Total net revenue

180,929

136,057

492,718

384,098

Cost and operating expenses Cost of revenues, genomics

60,126

46,540

181,285

138,781

Cost of revenues, data and services

14,964

15,490

52,384

40,690

Technology research and development

30,680

24,156

135,655

70,485

Research and development

27,348

23,234

119,713

66,268

Selling, general and administrative

101,427

71,426

644,063

211,662

Total cost and operating expenses

234,545

180,846

1,133,100

527,886

Loss from operations

(53,616

)

(44,789

)

(640,382

)

(143,788

)

Interest income

4,789

1,483

7,538

5,864

Interest expense

(13,761

)

(12,342

)

(40,294

)

(33,245

)

Other (expense) income, net

(11,522

)

2,287

(17,821

)

7,909

Loss before provision for income taxes

(74,110

)

(53,361

)

(690,959

)

(163,260

)

Provision for income taxes

(38

)

(65

)

(144

)

(74

)

Losses from equity method investments

(1,692

)

—

(1,692

)

(301

)

Net Loss

(75,840

)

(53,426

)

(692,795

)

(163,635

)

Dividends on Series A, B, B-1, B-2, C, D, E, F, G, G-3, andG-4 preferred shares

—

(11,143

)

(39,347

)

(32,709

)

Cumulative undeclared dividends on Series C preferredshares

—

(764

)

(1,174

)

(2,230

)

Net loss attributable to common shareholders, basic and diluted

(75,840

)

(65,333

)

(733,316

)

(198,574

)

Net loss per share attributable to common shareholders, basicand diluted

(0.46

)

(1.03

)

(7.04

)

(3.14

)

Weighted-average shares outstanding used to compute net lossper share, basic and diluted

165,612

63,286

104,164

63,267

Comprehensive Loss, net of tax Net loss

(75,840

)

(53,426

)

(692,795

)

(163,635

)

Foreign currency translation adjustment

10,302

(54

)

10,203

(29

)

Comprehensive loss

(65,538

)

(53,480

)

(682,592

)

(163,664

)

Tempus AI, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share amounts)

September 30, 2024

December 31, 2023

Assets Current Assets Cash and cash equivalents

388,006

165,767

Accounts receivable, net of allowances of $1,154 and $1,115 at September 30, 2024 and December 31, 2023, respectively

145,616

94,462

Inventory

36,138

28,845

Warrant asset

—

5,070

Prepaid expenses and other current assets

31,335

17,295

Marketable equity securities

78,317

31,807

Deferred offering costs

—

7,085

Total current assets

679,412

350,331

Property and equipment, net

59,392

61,681

Goodwill

73,365

73,354

Warrant asset, less current portion

—

4,930

Intangible assets, net

14,289

21,916

Investments and other assets

8,692

8,971

Investment in joint venture

103,699

—

Warrant contract asset, less current portion

17,866

21,499

Operating lease right-of-use assets

14,141

20,530

Restricted cash

872

840

Total Assets

971,728

564,052

Liabilities, Convertible redeemable preferred stock, and Stockholders' equity (deficit) Current Liabilities Accounts payable

49,027

54,421

Accrued expenses

101,985

82,517

Deferred revenue

67,604

64,860

Deferred other income

15,955

—

Other current liabilities

9,913

8,213

Operating lease liabilities

5,894

6,437

Accrued data licensing fees

2,242

6,382

Accrued dividends

—

9,797

Total current liabilities

252,620

232,627

Operating lease liabilities, less current portion

26,664

32,040

Convertible promissory note

174,460

193,124

Warrant liability

76,900

34,500

Other long-term liabilities

15,403

19,751

Interest payable

66,529

55,321

Long-term debt, net

264,527

256,541

Deferred other income, less current portion

27,921

—

Deferred revenue, less current portion

12,976

16,768

Total Liabilities

918,000

840,672

Commitments and contingencies (Note 8) Convertible redeemable preferred stock, $0.0001 par value, no and 69,803,765 shares authorized at September 30, 2024 and December 31, 2023, respectively; no and 63,525,953 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively; aggregate liquidation preference of $0 and $1,130,429 at September 30, 2024 and December 31, 2023, respectively

—

1,105,543

Stockholders' equity (deficit) Class A Voting Common Stock, $0.0001 par value, 1,000,000,000 and 200,228,024 shares authorized at September 30, 2024 and December 31, 2023, respectively; 150,280,363 and 58,367,961 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

Class B Voting Common Stock, $0.0001 par value, 5,500,000 and 5,374,899 shares authorized at September 30, 2024 and December 31, 2023, respectively; 5,043,789 and no shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

—

Non-voting Common Stock, $0.0001 par value, no and 66,946,627 shares authorized at September 30, 2024 and December 31, 2023, respectively; no shares issued and outstanding at September 30, 2024, and 5,205,802 shares issued and 5,060,336 shares outstanding at December 31, 2023

—

Treasury Stock, 145,466 shares at September 30, 2024 and December 31, 2023, at cost

(3,602

)

(3,602

)

Additional Paid-In Capital

2,184,926

18,345

Accumulated Other Comprehensive Income

10,208

Accumulated deficit

(2,137,820

)

(1,396,917

)

Total Stockholders' equity (deficit)

53,728

(1,382,163

)

Total Liabilities, Convertible redeemable preferred stock,and Stockholders' equity (deficit)

971,728

564,052

Tempus AI, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands, except per share amounts)

Nine Months Ended September 30,

2024

2023

Operating activities Net loss

(692,795

)

(163,635

)

Adjustments to reconcile net loss to net cash used in operating activities Change in fair value of warrant liability

42,400

(8,000

)

Stock-based compensation

509,351

—

Gain on warrant exercise

(173

)

—

Gain on marketable equity securities

(5,119

)

—

Losses from equity method investments

1,692

301

Amortization of original issue discount

1,036

778

Amortization of deferred financing fees

383

382

Change in fair value of contingent consideration

165

(400

)

Amortization of warrant contract asset

3,633

4,961

Depreciation and amortization

27,788

24,509

Provision for bad debt expense

545

1,538

Change in fair value of warrant asset

(18,302

)

—

Amortization of finance right-of-use lease assets

—

283

Non-cash operating lease costs

4,670

5,077

Minimum accretion expense

292

Impairment of intangible assets

—

7,359

PIK interest added to principal

6,567

2,123

Change in assets and liabilities Accounts receivable

(51,699

)

(25,365

)

Inventory

(7,293

)

(4,875

)

Prepaid expenses and other current assets

(14,040

)

(3,665

)

Investments and other assets

(410

)

(4,378

)

Accounts payable

(24,776

)

(12,253

)

Deferred revenue

(1,052

)

(16,644

)

Deferred other income

43,876

—

Accrued data licensing fees

(4,250

)

(8,374

)

Accrued expenses & other

23,371

20,749

Interest payable

11,208

11,724

Operating lease liabilities

(6,655

)

(6,559

)

Net cash used in operating activities

(149,794

)

(174,072

)

Investing activities Purchases of property and equipment

(14,159

)

(31,899

)

Proceeds from sale of marketable equity securities

23,098

—

Business combinations, net of cash acquired (Note 4)

—

(2,869

)

Investment in joint venture

(95,186

)

—

Purchases of marketable equity securities

(36,183

)

—

Net cash used in investing activities

(122,430

)

(34,768

)

Financing activities Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions

381,951

—

Tax withholding related to net share settlement of restricted stock units

(69,918

)

—

Issuance of Series G-5 Preferred Stock

199,750

—

Principal payments on finance lease liabilities

—

(288

)

Purchase of treasury stock

—

(3,602

)

Payment of deferred offering costs

(8,587

)

(574

)

Dividends paid

(5,625

)

(5,625

)

Proceeds from long-term debt, net of original issue discount

—

48,750

Payment of indemnity holdback related to acquisition

(813

)

—

G-4 Special Payment

(2,250

)

—

Net cash provided by financing activities

494,508

38,661

Effect of foreign exchange rates on cash

(13

)

(24

)

Net increase (decrease) in Cash, Cash Equivalents and Restricted Cash

222,271

(170,203

)

Cash, cash equivalents and restricted cash, beginning of period

166,607

303,731

Cash, cash equivalents and restricted cash, end of period

388,878

133,528

Cash, Cash Equivalents and Restricted Cash are Comprised of: Cash and cash equivalents

388,006

132,706

Restricted cash and cash equivalents

872

822

Total cash, cash equivalents and restricted cash

388,878

133,528

Supplemental disclosure of cash flow information Cash paid during the year for interest

20,899

12,293

Cash paid for income taxes

127

101

Supplemental disclosure of noncash investing and financing activities Dividends payable

5,487

6,912

Purchases of property and equipment, accrued but not paid

6,706

5,049

Deferred offering costs, accrued but not yet paid

179

2,849

Redemption of convertible promissory note

18,664

22,220

Non-voting common stock issued in connection with business combinations

344

4,305

Operating lease liabilities arising from obtaining right-of-use assets

550

1,097

Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering

1,348,809

—

Taxes related to net share settlement of restricted stock units not yet paid

164

—

Reclassificiation of deferred offering costs to additional paid-in capital upon initial public offering

12,347

—

Issuance of Series G-3 Preferred Stock

3,809

2,738

Issuance of Series G-4 Preferred Stock

611

—

Tempus AI, Inc.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(unaudited)

(in thousands, except percentages and per share amounts)

Genomics Gross Profit & Gross Margin

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Genomics revenue

116,422

96,815

331,315

270,797

Cost of revenues, genomics

60,126

46,540

181,285

138,781

Gross profit, genomics

56,296

50,275

150,030

132,016

Stock-based compensation expense

1,083

—

12,410

—

Employer payroll tax related to stock-based compensation

—

162

—

Non-GAAP gross profit, genomics

57,405

50,275

162,602

132,016

Genomics gross margin

48.4

51.9

45.3

48.8

Stock-based compensation expense

0.9

0.0

3.7

0.0

Employer payroll tax related to stock-based compensation

0.0

Non-GAAP gross margin, genomics

49.3

51.9

49.1

48.8

Data and Services Gross Profit & Gross Margin

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Data and services revenue

64,507

39,242

161,403

113,301

Cost of revenues, data and services

14,964

15,490

52,384

40,690

Gross profit, data and services

49,543

23,752

109,019

72,611

Stock-based compensation expense

916

—

8,145

—

Employer payroll tax related to stock-based compensation

—

162

—

Non-GAAP gross profit, data and services

50,502

23,752

117,326

72,611

Gross margin, data and services

76.8

60.5

67.5

64.1

Stock-based compensation expense

1.4

0.0

5.0

0.0

Employer payroll tax related to stock-based compensation

0.1

0.0

0.1

0.0

Non-GAAP gross margin, data and services

78.3

60.5

72.7

64.1

Total Gross Profit & Gross Margin

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Net revenue

180,929

136,057

492,718

384,098

Cost of revenues

75,090

62,030

233,669

179,471

Gross profit

105,839

74,027

259,049

204,627

Stock-based compensation expense

1,999

—

20,555

—

Employer payroll tax related to stock-based compensation

—

324

—

Non-GAAP gross profit

107,907

74,027

279,928

204,627

Gross margin

58.5

54.4

52.6

53.3

Stock-based compensation expense

1.1

0.0

4.2

0.0

Employer payroll tax related to stock-based compensation

0.0

0.1

0.0

Non-GAAP gross margin

59.6

54.4

56.8

53.3

Operating Expenses

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Technology research and development

30,680

24,156

135,655

70,485

Stock-based compensation expense

3,929

—

54,363

—

Employer payroll tax related to stock-based compensation

192

—

1,441

—

Non-GAAP technology research and development

26,559

24,156

79,851

70,485

Research and development

27,348

23,234

119,713

66,268

Stock-based compensation expense

2,554

—

44,787

—

Employer payroll tax related to stock-based compensation

134

—

810

—

Non-GAAP research and development

24,660

23,234

74,116

66,268

Selling, general and administrative

101,427

71,426

644,063

211,662

Stock-based compensation expense

12,556

—

389,646

—

Employer payroll tax related to stock-based compensation

806

—

3,388

—

Non-GAAP selling, general and administrative

88,065

71,426

251,029

211,662

Operating expenses

159,455

118,816

899,431

348,415

Stock-based compensation expense

19,039

—

488,796

—

Employer payroll tax related to stock-based compensation

1,132

—

5,639

—

Non-GAAP operating expenses

139,284

118,816

404,996

348,415

Earnings per Share

Three Months EndedSeptember 30, 2024 Nine Months EndedSeptember 30, 2024 Net loss

(75,840

)

(692,795

)

Fair value changes(1)

15,605

19,885

Stock-based compensation expense

21,038

509,351

Employer payroll tax related to stock-based compensation

1,201

5,963

G-4 Special Payment

—

2,250

Amortization of technology license

(3,989

)

(3,989

)

Non-GAAP net loss

(41,985

)

(159,335

)

Non-GAAP net loss per share

(0.25

)

(1.53

)

Weighted average common shares outstanding, basic and diluted

165,612

104,164

(1) Fair value changes include gains and losses related to quarterly fair value adjustments of our warrant liability, warrant asset, marketable equity securities, contingent consideration liabilities, and indemnity-related holdback liabilities.

Adjusted EBITDA

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

Net loss

(75,840

)

(53,426

)