Castle Biosciences, Inc. (NASDAQ:CSTL) Q1 2024 Earnings Conference Call May 2, 2024 4:30 PM ET Company Participants Camilla Zuckero - VP, IR & Corporate Affairs Derek Maetzold - President, CEO, Founder & Director Frank Stokes - CFO Conference Call Participants Subbu Nambi - Guggenheim Kyle Mikson - Canaccord Genuity Corey Rosenbaum - Scotiabank Thomas Flaten - Lake Street Paul Knight - KeyBanc Mason Carrico - Stephens Catherine Schulte - Baird Operator Good afternoon, and welcome to Castle Biosciences First ...

During the three months ended March 31, 2024, there were no significant changes to the information discussed under "Critical Accounting Estimates" included in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2023. Item 3. Quantitative and Qualitative Disclosures About Market Risk. Table of Contents Our exposure to inflationary pressures is primarily in personnel and related costs. The extent of ...

Castle Biosciences Reports First Quarter 2024 Results FRIENDSWOOD, Texas - May 2, 2024--Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced its financial results for the first quarter ended March 31, 2024. "Additionally, we continue to develop evidence to support the clinical utility of our tests. We are especially pleased with three peer-reviewed studies published since the beginning of 2024 that focus on our DecisionDx®-SCC ...

FRIENDSWOOD, Texas--(BUSINESS WIRE)--Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced the publication of an expert consensus article in the Journal of Clinical and Aesthetic Dermatology (JCAD) related to the utility of its DecisionDx-SCC test in clinical decision-making regarding the use of ART.2 The consensus guidelines outline a recommended risk-based workflow that integrates DecisionDx-SCC and AJCC8 staging into current ...

FRIENDSWOOD, Texas--(BUSINESS WIRE)--Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced new data highlighting the value of its IDgenetix pharmacogenomic (PGx) test in guiding medication recommendations for patients with mental health conditions who are 65 and older. The data will be shared via a poster presentation at the 2024 American Association for Geriatric Psychiatry (AAGP) Annual Meeting, taking place March 15-18 in Atl ...

FRIENDSWOOD, Texas--(BUSINESS WIRE)--Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced that the Company’s executive management is scheduled to present a company overview at the KeyBanc Capital Markets Virtual Life Sciences & MedTech Investor Forum on Tuesday, March 19, 2024, at 11:15 a.m. Eastern time. A live audio webcast of the Company’s presentation will be available by visiting Castle Biosciences’ website at https://ir. ...

FRIENDSWOOD, Texas--(BUSINESS WIRE)--Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced that it will share data across its dermatologic portfolio of gene expression profile (GEP) tests via oral and electronic poster presentations at the 2024 AAD Annual Meeting, taking place March 8-12 in San Diego. “Our presentations at the 2024 AAD Annual Meeting add to the growing body of evidence supporting the use of our tests in guidi ...

FRIENDSWOOD, Texas--(BUSINESS WIRE)--Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving health through innovative tests that guide patient care, today announced the publication of a new multi-center performance study of its DecisionDx-SCC risk stratification test. The study, published in Dermatology and Therapy and available here, analyzed the independent performance of DecisionDx-SCC from risk factors and traditional staging systems (i.e., Brigham and Women’s Hospital (BWH) and American Joint Com ...

Financial Data and Key Metrics Changes - The company reported fourth-quarter revenue of $66.1 million, a 72% increase over the fourth quarter of 2022, and full-year revenue of $219.8 million, a 60% increase compared to 2022 [70][60][45] - The gross margin for the fourth quarter was 77.8%, compared to 69.4% in the fourth quarter of 2022, and for the full year, it was 75.4%, compared to 70.6% in 2022 [55][70] - The net loss for the fourth quarter was $2.6 million, significantly improved from a net loss of $20.6 million in the same quarter of 2022, and the full-year net loss was $57.5 million, compared to $67.1 million in 2022 [74][70] Business Line Data and Key Metrics Changes - The DecisionDx-melanoma test delivered 33,330 test reports in 2023, a 20% year-over-year increase, while DecisionDx-SCC saw 11,442 test reports, a 92% increase compared to 2022 [89][65] - The TissueCypher test reports increased to 9,100 in 2023, representing over 300% growth from 2,128 reports in 2022 [92][66] - The IDgenetix test reports grew to 10,921 in 2023, compared to 3,249 in 2022, marking more than 200% growth [53] Market Data and Key Metrics Changes - The company highlighted that the use of DecisionDx-SCC could save the Medicare trust fund approximately $972 million annually by guiding decisions on adjuvant radiation therapy [51] - The company noted that 99% of patients tested with DecisionDx-SCC are eligible for adjuvant radiation therapy, indicating a significant market opportunity [117] Company Strategy and Development Direction - The company plans to expand its commercial team for TissueCypher modestly in the second quarter of 2024, reflecting confidence in continued growth [92] - The company aims to launch a genomic test for atopic dermatitis by the end of 2025, pending successful development and validation [94] - The company is focused on maintaining a strong financial position to continue investing in growth initiatives and expanding its commercial team [102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net positive cash flow from operations target in 2025, despite pressures from inflation and operating costs [12][14] - The company anticipates total revenue for 2024 to be between $235 million and $240 million, driven by consistent execution on growth plans [96] - Management acknowledged the potential impact of reimbursement challenges on gross margins but maintained that adjusted gross margins should remain stable if appropriate coverage is in place [118] Other Important Information - The company opened a new laboratory in Pittsburgh, Pennsylvania, and received advanced diagnostic laboratory test status for its DecisionDx-SCC test, bringing the total to five tests designated as ADLTs [60] - The company reported a significant increase in stock-based compensation expense, which is expected to continue in future periods [73] Q&A Session Summary Question: What is the outlook for OpEx growth in 2024? - Management indicated that OpEx growth will be lower than revenue growth, but inflationary pressures are real and will impact costs [12][14] Question: How confident is the company in achieving net positive cash from operations in 2025? - Management reiterated confidence in achieving the previously set target, emphasizing financial discipline [12][14] Question: What are the expectations for the reimbursement landscape? - Management noted uncertainty regarding reimbursement for tests but emphasized the importance of their tests in improving patient outcomes and reducing healthcare costs [26][81] Question: Can you provide updates on the TissueCypher sales force expansion? - Management confirmed plans for modest expansion of the TissueCypher sales force in the second quarter of 2024, but specific numbers were not disclosed [28][92] Question: What is the expected impact of the Novitas LCD on the company's tests? - Management stated that if the Novitas LCD finalizes as is, it would impact reimbursement and potentially lead to a reevaluation of test availability [26][26]

Castle Biosciences, Inc. (CSTL) reported $66.12 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 72.5%. EPS of -$0.10 for the same period compares to -$0.78 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $51.32 million, representing a surprise of +28.85%. The company delivered an EPS surprise of +88.10%, with the consensus EPS estimate being -$0.84.While investors scrutinize revenue and earnings changes year-over-year and how they ...