A：The genomics revenue grew by about 89% year over year in the first quarter of 2025.

A：The new data and modeling license agreement with AstraZeneca andPathos increased the company's total remaining contract value to more than $1 billion as of April 30. It also allows the company to use over 300 PB of data, which includes rich multimodal data connected to outcomes, to build a foundation model.

A：The significance of the data and modeling license agreement lies in its role in advancing precision medicine. It is a step towards understanding at a molecular level why patients do and do not respond to cancer treatments. The agreement will provide insights that could lead to diagnostics playing a critical role in ensuring every patient is on the optimal therapeutic path and help drug companies to be more efficient and reduce the frequency of failed clinical trials.

A：The deal structure involves a $100 million upfront fee from Pathos, potential stock components, and additional payments from AstraZeneca. The total amount of the deal, including these components, is expected to be reflected on the company's P&L in the coming months. The specifics of how these payments will be allocated on the P&L and the residual from Pathos were not fully detailed in the provided transcript.

A：AstraZeneca made an initial payment in cash and has the option to make future payments partly cash and partly stock. The company has a $200 million data license and is part of a three-way partnership where AstraZeneca invests in a foundational model with a commitment of certain attributes, leveraging work done by Pathos and the speaker's company. This partnership is expected to generate revenue over a three-year period as the model is built.

A：The performance of the hereditary business exceeded expectations, growing at a much faster rate than the initial forecast of mid to high teens. The business has experienced rapid growth previously, and while the speaker notes that it may continue, they are not highlighting this for the audience and are instead watching the business performance month to month. As of the quarter, the business is performing strongly and there is no sign of slowing down.

A：The deep integration of the company's products, referred to as deep Ed, is core to their business model. It involves combining large amounts of clinical and molecular data to build rich data sets, which can then be linked to outcome and response data. This integration allows for a molecular-level understanding of patients and their responses to treatment, facilitating advanced analytics and the ability to advance studies and clinical trials. It also enables providers to interrogate their own data sets, leading to a bidirectional feed of data that enhances the company's large data sets, now encompassing nearly a million patients.

A：The company is looking to invest back into the business when it becomes profitable. The specific areas of interest for investment in 2025 and any potential changes to this wish list as a result of achieving profitability are not detailed in the transcript.

A：The $60 increase in oncology ASPs in Q1 was primarily due to the migration of Xt volume to the FDA-approved version of the assay, which has an Iasp with Medicare. Additionally, there was a small impact from some ASP improvement for a liquid biopsy code. By the end of Q1, 20% of XT volume was migrated to the FDA-approved version, with a target to migrate about 40% by the end of the year.

A：The company expects to achieve adjusted EBITDA positivity for the year, which is a significant milestone. This is particularly impressive when compared to other similarly situated companies that are still losing between 100 to 200 million dollars annually.

A：The company is mindful of the substantial opportunity to bring AI to healthcare at scale without underinvestment that could compromise long-term growth. Specific areas of investment include genomics, particularly the MRD space, with a tumor naïve platform under development and ongoing studies in various disease areas. Further, there are plans to invest in core AI applications and products, including the foundation model, data, and compute power for diagnostics at scale.

A：While the company experienced delays due to weather-related issues in the first quarter, which affected genomics volumes, the focus is on long-term sustainable growth rather than short-term fluctuations. The company aims to continue investing in growth opportunities and has an expectation of solid performance despite the challenges faced in Q1.

A：Competitive factors such as weather-induced issues impacted the genomics business in the first quarter, causing delays in test deliveries. The company, however, does not focus extensively on short-term profitability at the expense of long-term growth. The emphasis is on sustained growth over time rather than a single quarter's performance.

A：The insights business is off to a good start, with the data and services business growing more than 40% and the insights business growing 58%. The company has a strong backlog with $940 million of real contract value yet to be delivered, which includes a recent deal with Astra that will increase the total contract value over a billion dollars. This visibility provides confidence for the remainder of the year and into the next several years.

A：The company did not specify which tests in its broader portfolio are picking up share in the marketplace but implied that they are focusing on leveraging their data and collaborations with pharma to achieve early traction in the MRD space and capitalize on opportunities with partners like Astra.

A：Tempest's tests are differentiated by their ability to derive insights from a massive amount of data, including hundreds of petabytes of molecular data connected to vast amounts of outcomes, revealing associations that have not been previously understood.

A：The NCC guideline recommends profiling non small cell lung cancer patients for EGFR positivity, but only about half of the patients respond to the drug, with different response durations even among those who do respond.

A：AI and technology may enable the prediction of whether a patient will respond to an EGFR inhibitor before they start the drug, which could lead to the design of intelligent, personalized diagnostics for therapy selection and more.

A：Data will provide greater granularity in understanding not just whether a patient will recur, but also how to intervene, how aggressive the treatment should be, and the meaning of specific molecular signatures like methylome signatures or mutations in the blood.

A：The updated revenue guidance includes some amount of new Pathos revenue. The company has visibility into revenue, especially data revenue, and aims to sign and deliver a certain amount in the year, which has been the case for some time.

A：The company has not seen a significant impact on large pharma due to their multiyear, committed relationships. The data business benefits from biotechs being more efficient with their budgets, using the types of data licensed by the company to design trials or identify targets effectively.

A：The lack of funding for biotechs over the last 24 months has impacted some biotechs, but it represents a small percentage of the company's overall business. The majority of TCV and revenue comes from large pharma with larger R&D budgets.

A：The company is managing volumes for the tumor naive assay because it is not currently reimbursed by MCDX. The demand for the tumor informed assay in non small cell lung cancer and breast cancer has been strong, with informed being preferred due to its improved sensitivity and specificity. The company is also working on improving the tumor naive assay.