Q1 2025 Tempus AI Inc Earnings Call
At this time, I would like to welcome everyone to the first quarter [inaudible]
Argy: 2025 Financial Results, Conference Call. All lines have been placed on mute to prevent any back-o noise. After the speakers remarks, there will be a question and answer session.
Argy: If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again, thank you.
Speaker Change: I would now like to turn the call over to Liz Krutoholow, VP for investor relations. Please go ahead.
Speaker Change: Thank you. Good afternoon and welcome to Tempus' first quarter 2025 conference call. This afternoon Tempus released results for the quarter ended March 31, 2025. The press release and overview of the quarter and our latest presentation are available on our IR website.
Speaker Change: Joining me today from Tempus are Eric Lefkofsky, founder and CEO of Tempus, and Jim Rogers, CFO .
Speaker Change: Before we begin, I would like to remind you that during this call, management may make forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially. For discussion of these risks, please refer to our 10K and other filings with the SEC.
Speaker Change: During the call, we will discuss non-gape financial measures, which are not prepared in accordance with generally accepted accounting principles.
Eric Lefkofsky: I would now like to turn the call over to Eric.
Thank you.
and thanks for joining us today.
Eric Lefkofsky: Q1 was a record quarter for Tempest and we're off to a great start. I'll provide just a super quick overview and then we can take questions.
Eric Lefkofsky: Cordley revenue increased 75.4% year-reared to 255.7 million. Genomics revenue was 193.8 million, which is about 89% year-rear growth.
Eric Lefkofsky: Oncology Testing, which is how we're going to refer to our Legacy Tempest Clinical Testing, grew 31% year-over-year with approximately 20% volume growth.
Eric Lefkofsky: Hereditary Testing, which is how we're going to refer to the legacy of the Ambridge
Eric Lefkofsky: I contributed $63.5 million in revenue and grew its units by 23%.
Eric Lefkofsky: Revenue from Data and Services total of 61.9 million, which was about 43% year-over-year growth led by our insights or data licensing business which grew 58% year-over-year.
Eric Lefkofsky: We generated $155.2 million in quarterly gross profit, which was 99.8% growth year over year.
Eric Lefkofsky: Adjusted EBITDA was negative 16.2 million in the first quarter of 2025 compared to negative 43.9 million in the first quarter of 2024, which was an improvement of 27.8 million year over year.
Eric Lefkofsky: So I would say all in the company's performing super well.
Eric Lefkofsky: which was in my quote. Revenue's Arup Gross Profit is up.
Eric Lefkofsky: Both are growing nicely, we're managing our costs, which is producing nice, you're over your operating leverage.
Eric Lefkofsky: In addition, I'll highlight just one other big piece of news which we put out right there.
Eric Lefkofsky: But a week ago, which is, we announced a three-year, $200 million data and modeling license agreement with Aspirin and Kempathos in April to build the world's largest foundation model in oncology.
Eric Lefkofsky: And this is a big for a few reasons. One is it brings our total remaining contract value. That's a greater than 1 billion as of April 30th.
Eric Lefkofsky: It also allows us to take our over 300 petabytes of data which includes this really rich multi-modal data that connected the outcomes.
Eric Lefkofsky: and use that to build a foundation model which is in addition to the data licensing which is quite positive for us also the cost of compute is not small and easy and pathos are covering a significant portion of that.
Eric Lefkofsky: When the models complete, which we expect, the first version of the model will be complete in about nine to twelve months. Each party will get a copy,
Eric Lefkofsky: Given that AstraZeneca is our longest standing client and actually was our first strategic collaboration, we couldn't be more excited to be expanding our relationship in such a significant manner. I think, you know, kind of further validating the value we're providing to lots of biopharmic clients.
Eric Lefkofsky: It's also worth noting this is a non-exclusive agreement. We can essentially license data and build models with others and we hope to do so in the future and as such this represents an entirely new category for us.
Eric Lefkofsky: It's also important in that it's a giant step in making precision medicine a reality.
Eric Lefkofsky: We're closer than ever to understanding at a molecular level why patients do and don't respond to cancer treatments.
Eric Lefkofsky: and we believe models like this will bring all kinds of insights into clear focus.
Eric Lefkofsky: and we can see a day when our diagnostics are so smart that they're actually playing a critical role in ensuring every patient's on the optimal therapeutic path and that drug companies are far more efficient, ideally in a perfect world having clinical trials that fail far less often.
On that note, we're happy to take questions.
Speaker Change: Thank you. At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. And to ensure we get to as many participants as possible, we ask each analyst to please limit your question to one. We will pause for just a moment to compile the Q&A roster.
Speaker Change: Your first question comes from the line of Tejas Savant from Morgan Stanley . Please go ahead.
Teja Savant: Hey guys, good evening and appreciate the time here. Eric, congrats on a clean start to the year. I want to ask a two-parter on the easy VASOS deal that you just highlighted as well. So first up, can you just share some color and follow-up conversations with other pharma companies about the possibility of similar deals for foundational model development in oncology and what is it about the VASOS approach that really is the hooker for drug developers. And on the deal again.
Speaker Change: One for Jim. I want to dig a little bit into the deal structure here. It's a little bit sort of complicated. So as we think about the rev rack on this $200 million amount, you know, there's that $50 million upfront fee from Tathos to you guys, but then you guys are also paying them, I think, $35.
Speaker Change: and then in terms of upfront, you also get an AZ, I think paying 35 million.
Speaker Change: So just pass that out for us in terms of how you expect it to play out on the PNL, and then the 150 million residual from Pathos, I think there's a stock component in it as well. So just unpack that a little bit in terms of the next three years and how it flows through the PNL. Thank you.
Speaker Change: Yes, so I can start and the gym can jump in. So after we announce the...
Speaker Change: The steel, obviously, there was quite a bit of excitement among other companies. We work with I think 19 and the 20 largest pharmaceutical companies in oncology.
Speaker Change: and have good relationships with a bunch, and so people were quite interested, you know, master's on it, because one of the leaders in oncology and a set of...
Speaker Change: really strong track record over the past four or five years. And so I think people were particularly focused on what was this going to mean for them going forward and how should they try to bring it into their own practice.
Speaker Change: Some of those conversations have already kicked off. I would say the excitement has been, uh,
Speaker Change: You know, greater than I thought it was going to be. So, and I had pretty lofty expectations, so that's awesome. But these are these are big deals as Jim will cover in a second. You know, this is, this is $200 million of data licensing and real data revenue and. [inaudible]
And so somebody's got to be willing to...
Sina for something that's significant. [inaudible]
Speaker Change: and it's expensive and so even though there's a ton of excitement, we have to turn that into tangible agreements and tangible projects and kick those off.
and so I think when...
whereby they can make a sizable investment.
Speaker Change: and commit some of the attributes they have, but they also could leverage a bunch of work that Pathos had done.
Speaker Change: and then obviously leverage our data and the work we had done. And so it came together as a three-way partnership, but just as easily could have come together as a two-way partnership between us and the pharmaceutical company and not involved a pathos. I'll let Jim cover the rubric.
Speaker Change: specifically related to building the foundational models. The data can only be used for that purpose as AD Pathos and Tempus work together to build that foundational model. There are some cash flow between AD to Tempus over to Pathos, but there's no revenue recognition impact of that. And so the $200 million will be recognized, it ramps a little bit over the three-year period, but roughly rateably over the three-year term during which the model will be built.
Speaker Change: So this license is no different than the other large subscriptions that we have. The upfront payment from AID or from PATHOS, Tempus, doesn't trigger any revenue recognition upon that payment. It's just three year subscription to more than the other large multi year deals that we currently have. And one last piece, the first payment was made in cash. We at this point, even though PATHOS could make some payments in the future in part cash, part stock.
Speaker Change: We have every reason to think they'll make it in cash, and so it's very possible that we just collect cash the entire time.
Speaker Change: Your next question comes from the line of Ryan MacDonald of Needham in Company, please go ahead.
I think you're taking my questions.
Speaker Change: You know, congrats on a great quarter. Maybe you could talk about the hereditary business. I think the original expectation as that was integrated, as Ambery was integrated was sort of a maybe a [inaudible]
Speaker Change: Mid-to-high teens growth rate for this year but obviously kicking off the year and much faster rate in around 23 percent. You just maybe talk about what surprised you to the upside in terms of the performance of that business and maybe how durable the mid-20s growth rate was, thank you.
Speaker Change: Paul Reddeter, you know, screening was either kind of in the twilight or sunset of its horizon or have you come commoditized? And we just...
Speaker Change: You know, obviously, I couldn't feel more strongly that that's not accurate [inaudible]
Speaker Change: I mean, I could foresee a day when tens of millions of people get this kind of sequencing on a regular basis, not just to understand their...
Speaker Change: Inherited Cancer Risk, but they're inherited cardio risk, they're inherited Alzheimer's risk, they're inherited risk of developing immunological disorder later in life. And so the target audience of people that might be at risk of disease is obviously much greater than the audience of people that have disease in general speaking. [inaudible]
Speaker Change: In large part, they experienced a lot of rapid growth previously, so you're lapping that period. So yes.
Speaker Change: The business is performing really strong, you know, that may continue, but we're not here to, you know, kind of highlight that for folks. We're watching it month to month, but so far. They're firing on all cylinders and we see, we see no sign of that slowing down. [inaudible]
Speaker Change: Question comes from the line of Mark Shippell of Loop Capital. Please go ahead.
Mark Chappell: Good evening. Thank you for taking my question and a nice job on the quarter. Eric, I have a question around the deep six acquisition that was made during the quarters. Let me just provide some visual details around what capabilities deep six brings that you already did not have.
Mark Chappell: molecular offering that with the acquisition of Ambry we felt really good that between you know our MRD offerings and our therapy selection offerings and our hereditary offerings we felt really good and that if we were to make any acquisitions they would likely be smaller and like likely be on the on the data and services side and so that's by the way it's exactly what DeepSix is.
Mark Chappell: You know, core to our business model is obviously combining large amounts of clinical and molecular data.
Mark Chappell: and being able to build these really rich data sets where you can understand at a molecular level what's happening to a patient and then connect all those rich molecular insights.
to Outcome and Response Data Over Time.
Mark Chappell: It was a overall survival, all that clinical data. And so you have to have rich connections to pull that clinical data.
Mark Chappell: We also mentioned this quarter. We're now over 4,000 connections which is significantly from the past. And deep six is a part of adding more connectivity, especially to some really high quality institutions. They built a product that allows.
Mark Chappell: to advance analytics to get people on their own studies and clinical trials. And that product has good product market fit, people like it, and it allows us to kind of have another
Mark Chappell: to providers, another reason for them to share their data with us, another reason to be on our platform.
David Westenberg, David Westenberg, David Westenberg,
Speaker Change: Your next question comes from the line of Subhalaxmi Nambi of Gaganheim. Please go ahead.
Speaker Change: Hey guys, thank you for taking my question. I had one model related question and one long term. For the model related, could you remind us the assumption baked in on gross margin and ASP improvement. If you do receive. Um.
Speaker Change: Moldiex, Assembly Investment before the end of the year. And if it's not victim, could you quantify the upside? And the long-term question was, when you do slip, if it are positives, you said you're looking to invest back into the business.
Speaker Change: Julius, what are you looking at right now with the most ROI in 2025 and if that wish list changes at all as a result of flipping to profitability? Thank you.
Speaker Change: Yeah, so I'll say the first question that Eric can take the second one. In terms of the ASP progression, obviously we saw about a $60 increase in our oncology ASP's into one, largely the results of us migrating our XT volume over the ADLT version and the FDA approved version of that assay, which has an higher ASP with Medicare. There was also a small impact from some ASP improvements for our liquid biopsy code as well.
Eric Lefkofsky: And in terms of how we think about EBITDA and investments in ROI, it was very important to us as we have said historically that we are EBITDA positive by the time we turn 10 which is this year, we'll turn 10 this year and so I think we're on track as we do.
who's providing our guidance to the adjusted EBITDA positive.
Eric Lefkofsky: This year, which is a big milestone for us, especially given that there's other companies that are older than us similarly situated that are still losing 100 million bucks a year, 200 million bucks a year, so we feel really good. Thank you very much.
that we have is-
Eric Lefkofsky: Rapid growth rates, an often besting class growth, and the business-brucing lots of growth profit and lots of leverage, and so we're able to run it in any but not positive manner.
Eric Lefkofsky: The issue for us, I think, is when you look at the opportunity set to bring AI to healthcare at scale, it's not small, and you don't want to under-invest [inaudible]
Eric Lefkofsky: and just try to maximize every dollar of profit at the expense of long-term sustained growth and then miss out on what could be one of the biggest.
Eric Lefkofsky: Technology Opportunities of all time, and so we're mindful of that, and in particular, there's lots of places to invest in both of our made businesses, for example genomics.
Eric Lefkofsky: The MRD space is super exciting, we've got a Tumornai platform that we believe in, we're running all kinds of studies in different disease areas, and we continue to make those, we're making those investments now, we made them last year, we'll make more of the future, and we feel good about those investments, but it's certainly an area.
Eric Lefkofsky: to put money to, and then the others in terms of building out our core.
AI applications and products that including the foundation model that
Eric Lefkofsky: He's going to power a lot of this. You know, you're constantly investing in data and compute.
Eric Lefkofsky: You'll be able to bring AI to diagnostics at scale and so we have we're fortunate that the landscape in front of US is open we can make we have lots of things we would love to invest in but also disciplined in that.
Eric Lefkofsky: I'm going to try and trying to get ahead of our skis and make sure that we're investing appropriately.
Eric Lefkofsky: And I think lucky that these things are all coming together in a really nice way, where the growth is producing lots of additional dollars that we can invest to drive future growth.
Eric Lefkofsky: Your next question comes from the line of Daniel Brennan of TD. Colin. Please go ahead.
Eric Lefkofsky: Yeah.
Daniel Brennan: Great I was hoping maybe you could just speak to the first question would just be on the genomic volumes.
Daniel Brennan: Just give us a sense of some competitive talked about some weather induced issues in the first quarter of 20% was kind of towards the lower end.
Daniel Brennan: Of the range, just wondering kind of how the quarter played out versus expectations, how you think volumes.
Daniel Brennan: Play out throughout the rest of the year and then being just on the insights business.
Daniel Brennan: Helpful upfront with the Astra ideal, but I'm wondering what else could you say just in terms of how that business is going what the funnel looks like any qualitative color you can provide about the demand trends on your insights business.
Daniel Brennan: Yeah I'll take the first.
Daniel Brennan: What I don't know about weather I mean weather could have played some some impacts that we certainly had many days when fed.
Daniel Brennan: Fedex was delayed or parts of the country were shut down.
Daniel Brennan: We don't we don't spend a ton of time.
Daniel Brennan: Our focus on that because we're not we don't think of ourselves as just a lab and that's not our that's not our only business, where we're kind of micro fixated on it.
Daniel Brennan: We consider 20% growth given our scale given our volume given the volume of tests that we're running to be a pretty extraordinary when you look at the unit growth of Tempus in the aggregate I think we delivered some of the 158000 tests this quarter, so anytime you've got something delivering 158.
Daniel Brennan: <unk> thousand billable orders that is growing units not only in double digits, but.
Daniel Brennan: The 20% range it is.
Daniel Brennan: It's pretty good so we're way more focused on long term sustained growth than we are on short term growth and if we ever have a choice to grow at 20% for six or eight quarters, or 10 quarters versus 22% or 20% for one quarter, we will always choose.
Daniel Brennan: The former.
Speaker Change: Yes, and on your second question, Dan regarding the insights business the data business.
Daniel Brennan: It's also off to a good start as we mentioned the whole data services business growing more than 40%.
Daniel Brennan: The insights business were up 58%. So we were very fortunate coming into the year, we had $940 million already total contract value that.
Daniel Brennan: That was yet to be delivered and so delivering on those subscriptions and then adding additional yield at Q1, obviously the highlight coming in April with a Z, which pushes the total remaining contract value of over $1 billion for the first time ever and so thats forward looking visibility that those contracts provide.
Daniel Brennan: Allow us to feel really confident about the data.
Daniel Brennan: The balance of the year and into the next several years.
Speaker Change: Your next question comes from the line of Mark Massaro of BPI. Please go ahead.
Mark Massaro: Hey, guys. Thank you for taking the questions.
Mark Massaro: First one is for you Eric I was just curious if you could speak to how you think you can leverage your advantage with data and collaborations with pharma to some of your early.
Traction in the <unk> space. So if you could speak to how you're how you see the tumor naive opportunity, but also how you see the tumor informed opportunity coming together with your partner and then I'll ask the second question, which is can you speak to any puts and takes on.
Mark Massaro: Yeah.
Mark Massaro: In your broader portfolio that that might be picking up share in the marketplace. Thank you.
Mark Massaro: Yes, so let.
Mark Massaro: Let me, let's start the first so I think look.
Mark Massaro: Long term, we have we have we have said this for years.
Mark Massaro: We believe that AI and technology are the primary differentiator of diagnostics, which is.
Mark Massaro: Kind of.
Mark Massaro: Complicated because we spent so much time on the diagnostic side talking about like sensitivity and specificity and limit of detection in this study and that test in this 500 genes and 1000 genes.
Mark Massaro: We fundamentally believe that is not the differentiator we're in a migration that we've been in for some long period of time, where sequencing is getting less expensive and I suspect over time, we're all doing whole genome whole transcriptome and alike.
Mark Massaro: Quite quite regularly and that and that's that's the bioinformatics landscape for the future. So what differentiates. These tests is what insights can you derived for a clinician or a patient off of this massive amounts of data and that is where I think tempus is so differentiated and yet we don't kind of don't spend a lot of.
Mark Massaro: If we're talking about it which is which is fine because it's.
Mark Massaro: You want to see what it shows up but if you look at the foundation model we're building.
Mark Massaro: What it's essentially doing is pouring in enormous amount of data right hundreds.
Mark Massaro: Hundreds of Petabytes of data looking for associations between vast amounts of molecular data that we have been unable to ever interrogate connected to vast amounts of outcomes and likely what should show up as all kinds of associations that none of us ever knew existed. So for example, if I'm a non small cell lung cancer patient one.
Mark Massaro: The first thing is the NCC guidelines would tell me that I should be profiled them to see if I'm Egfr positive Egfr mutated Egfr inhibitor the challenges about half the patients they get that drug respond at the other half don't and even the half that do respond have different variations of response, some might be on that drug for year somewhat beyond that drug for a decade, we have no way of Schrader.
Mark Massaro: Find those patients.
Mark Massaro: And in cancer. The name of the game is that generate more insights earlier in the process and I suspect AI and technology will produce that.
Mark Massaro: I hope, it's tempus, but some company like Tempus will one day understand whether or not a patient is going to respond and egfr inhibitor before they ever go on the drug.
Mark Massaro: And once you have that kind of information you can design truly intelligent personalized diagnostics, that's going to hold true for therapy selection, that's going to hold true for <unk> and thats going to hold true for MRV, we're going to know.
With far greater granularity, not just whether or not a patient is likely to recur.
Mark Massaro: These tests are amazing and their ability to see see recurrence long before scan, but also how to intervene.
Mark Massaro: What it means when we're when we see the signatures. These whether they are met <unk> signatures of whether Theyre just fragments.
Mark Massaro: Mutations in the blood what does it mean, how do we analyze them. This patient this patient likely going to.
Mark Massaro: Have a very bad recurrence is it going to be mild does it point to we have.
Mark Massaro: A short amount of time long amount of time, how aggressive should we be all these insights will be data driven I think and so I would suspect that for both our tumor naive and tumor informed products. We we enhance them and eventually I think make them totally differentiated from anything else out there by virtue of our.
Mark Massaro: Investments in AI technology, and the data that we've been able to amass, which others don't have.
In terms of the performance of the different.
After that we had a market today I think.
Mark Massaro: We saw growth across the entire portfolio, obviously with <unk>, we're still kind of metering the volume given the lack of reimbursement and so we wouldn't anticipate volumes growing tremendously there only because since we don't have reimbursement.
Mark Massaro: We're bearing the cost of running those dots, but the core asset and it's kind of all performing well in the quarter.
Speaker Change: Again as a reminder, if you would like to ask a question press star one on your telephone keypad and please limit your question into one to ensure we get to as many participants as possible.
Speaker Change: And your next question comes from the line of Michael <unk> of Bank of America. Please go ahead.
Speaker Change: Great. Thanks for taking the question guys I'll ask one maybe it has multiple parts, but I promise, it's only one question.
Speaker Change: I just want to make sure sort of tying your earlier comments on pass those on.
Speaker Change: On sort of how <unk> performed in the quarter just sort of what's included in the or what are your assumptions.
Speaker Change: Add up to the new revenue guide for the year the one five.
Speaker Change: You're raising it by $10 million versus prior does that include pathos contribution it sounds like it does but.
Speaker Change: But if you just take that $200 million of prorated over 12 quarters.
Speaker Change: Just sort of how much of that is in there and then previously you talked about.
Speaker Change: Ambry high teens growth.
Speaker Change: The legacy <unk> business around 30% is that still unchanged just want to parse out the moving pieces of the change.
Speaker Change: Yes, I mean, Jim and I can both can both answer so.
Speaker Change: Certainly in the guide there is some amount of the new pathos AC revenue.
Speaker Change: Start every year, we have a we have a very high degree of visibility to our revenue, especially our data revenues, but not 100% visibility so.
Speaker Change: So we always expect to sign a certain amount of of revenue that we both sign and deliver in the year and.
Speaker Change: That's been the case for some period of time. So it's we're fortunate that here we are.
Speaker Change: Ever made and we've we of course were so far ahead, which is awesome, but this thing is going to ramp over time.
Speaker Change: We don't have obviously, we only have a partial year anyway.
Speaker Change: We had some we had some always had planned to go get some additional revenue. So we feel like this is appropriate. We also are being I think appropriately conservative in terms of ambry in its growth rates and how they perform the balance of the year could there be some upside there sure but at this point our job is to basically kind of say hey.
Speaker Change: This feels like an appropriate place to be and we're we're glad that we right by the way, we raised guidance last quarter by $10 million, which raise it again by $10 million. So we're kind of $20 million above where we were 90 days ago. So we feel like we're in the right place, but we don't want a get out of our skews.
Speaker Change: Question comes from the line of retail that style of Jpmorgan. Please go ahead.
Speaker Change: Hey, good afternoon, and thank you guys for taking the question. So I wanted to dig into the data side of the portfolio and specifically what you're seeing on the TCE.
Speaker Change: Given what we've seen from a macro sense theres a lot of noise out there and archives of biotech funding, but also far more these potential tariffs and everything as well. So can you talk about the risks that you see given the choppy macro environment that you can see some of the people, we either canceled or pulled out of that backlog and we've also heard some this year as kind of talk about these elevated.
Speaker Change: Cancellations in both preclinical and clinical studies. So curious how are you expecting that raskin have you seen any impact so far.
Speaker Change: Yes. So just a reminder, on the data business, we kind of have two customer groups. We work with 19 of the top 20 large pharma companies and then a couple of hundred biotechs, obviously, the majority of the <unk> and the revenue comes from the buyer.
Speaker Change: Large pharma companies that have larger R&D budgets, but we do work with a number of biotech certainly on the biotech side. There has been some impact over the last call. It 24 months of the lack of funding in kind of that coming through.
Speaker Change: That represents a smaller percentage of our overall business the relationships with big pharma tend to be multiyear subscriptions that are committed to.
Speaker Change: We're delivering the data that they have agreed to license over the terms and so we haven't seen a significant impact on the large pharma side I'd also add that when.
Speaker Change: When budget tended to.
Speaker Change: <unk> be.
Speaker Change: The flash or could we actually see a little bit of a benefit to the data business because leveraging the types of data that we license folks allows them to more effectively designer trials or identified targets in a more effective way and so we actually see a little bit of a benefit of our business on the data side.
Speaker Change: When it comes to budgeting being but budgets being shrunk.
Speaker Change: Because they can leverage our data to be more efficient and it kind of stretch those dollars.
Speaker Change: And that's what we've seen in the market.
Speaker Change: Your next question comes from the line of Dan <unk> of Stifel. Please go ahead.
Speaker Change: Hi, guys. Thanks for the questions Eric on <unk>, obviously, a lot going on in that space. You guys are coming up on one full year I believe of commercial availability for the <unk> assay whats gone the way that you expected really in your program whats been a bit of a surprise and then what would you say are the key things over the course of the next year.
Speaker Change: Order to feel like you're on track and successful.
Speaker Change: Yes, so I mean, we.
Speaker Change: Our portfolio just to remind people includes.
Speaker Change: Our tumor naive assay in colorectal cancer and it includes.
Speaker Change: Personalities as tumor informed assay in non small cell lung breast and Io response, so we kind of in the market.
Speaker Change: For areas for very big areas, we are.
Speaker Change: Managing volumes and metering volumes because none of these assets are currently reimbursed by <unk> so not.
Speaker Change: Our assay not there and so we run these tests, but we don't get paid so we're metering volume otherwise you could burn a lot of money I would say that.
Speaker Change: The demand has been quite strong we've been pleasantly surprised that there's a ton of interest.
Speaker Change: In both in both products I think there's a space for naive space for informed informed is clearly winning the day today because it has improved sensitivity and specificity its got lower limits of detection. The terrorist did a great job is hitting the market. So informed as kind of the more conventional way people think about <unk> today.
Speaker Change: We're fortunate that personalities platform is really best in class in terms of a bunch of those metrics because whole genome based instead of whole exome based so I think people want it and I would suspect the volumes will be really strong once we get it in terms of tumor naive. We're all doing a bunch of work Boston other people that have those products to keep improving those asked.
Speaker Change: As to make sure that they perform well I think they performed quite well today are certainly does performs quite well.
Especially in those instances, where you don't have extra tissue, where you can't rerun a whole genome.
Speaker Change: Tumor informed assay because youre, just literally don't have the tissue and in certain areas like non small cell lung cancer, where you have scant.
Scant tissue to begin with.
Speaker Change: I think we those products will perform really well so I would say it's early days.
Speaker Change: But everything is moving along quite nicely and I have not been.
Speaker Change: <unk> negatively surprised.
Speaker Change: Big wave of kind of when you start a new product you learn all kinds of stuff. So far I think we feel really good about our long term positioning in MRV.
Speaker Change: Okay.
Speaker Change: That ends our Q&A session and we appreciate your participation.
Lisa: I'll now turn the call back over to Lisa Hello, VP for Investor Relations. Please go ahead.
Lisa: Thank you all for joining us today as always we're available for any follow up questions. We look forward to updating you again next quarter.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].