Castle Biosciences Reports Third Quarter 2024 Results
Castle Biosciences (CSTL) reported strong Q3 2024 financial results with revenue increasing 39% to $85.8 million compared to Q3 2023. Total test reports grew 41% to 26,010. The company raised its full-year 2024 revenue guidance to $320-330 million from $275-300 million. Q3 highlights include a gross margin of 79%, net income of $2.3 million, and Adjusted EBITDA of $21.6 million. Notable growth was seen across multiple tests, with TissueCypher® Barrett's Esophagus test reports increasing 115% and IDgenetix® test reports up 81%. The company's cash position stood at $279.8 million as of September 30, 2024.
Castle Biosciences (CSTL) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un aumento del fatturato del 39%, raggiungendo 85,8 milioni di dollari rispetto al terzo trimestre del 2023. I report totali dei test sono aumentati del 41%, raggiungendo 26.010. L'azienda ha alzato le previsioni di fatturato per l'intero anno 2024 a 320-330 milioni di dollari, rispetto ai precedenti 275-300 milioni. I punti salienti del terzo trimestre includono un margine lordo del 79%, un utile netto di 2,3 milioni di dollari e un EBITDA rettificato di 21,6 milioni di dollari. È stata osservata una crescita notevole in diversi test, con i report del test TissueCypher® Barrett's Esophagus in aumento del 115% e i report del test IDgenetix® in aumento dell'81%. La posizione di liquidità dell'azienda era di 279,8 milioni di dollari al 30 settembre 2024.
Castle Biosciences (CSTL) informó resultados financieros sólidos para el tercer trimestre de 2024, con un aumento del 39% en los ingresos, alcanzando 85.8 millones de dólares en comparación con el tercer trimestre de 2023. Los informes totales de pruebas crecieron un 41%, alcanzando 26,010. La empresa elevó su guía de ingresos para todo el año 2024 a 320-330 millones de dólares, desde 275-300 millones. Los puntos destacados del tercer trimestre incluyen un margen bruto del 79%, un ingreso neto de 2.3 millones de dólares y un EBITDA ajustado de 21.6 millones de dólares. Se observó un crecimiento notable en varias pruebas, con los informes de la prueba TissueCypher® Barrett's Esophagus aumentando un 115% y los informes de la prueba IDgenetix® aumentando un 81%. La posición de efectivo de la empresa era de 279.8 millones de dólares al 30 de septiembre de 2024.
캐슬 바이오사이언스 (CSTL)는 2024년 3분기 재무 실적이 강력하다고 보고하며, 수익이 39% 증가하여 8,580만 달러에 달했다고 발표했습니다. 총 테스트 보고서는 41% 증가하여 26,010건에 도달했습니다. 이 회사는 2024년 전체 수익 가이드를 2억 7,500만-3억 달러에서 3억 2,000만-3억 3,000만 달러로 상향 조정했습니다. 3분기의 주요 사항으로는 79%의 총 이익률, 순이익 230만 달러, 조정 EBITDA 2,160만 달러가 있습니다. 여러 테스트에서 주목할 만한 성장이 나타났으며, TissueCypher® Barrett's Esophagus 테스트 보고서는 115% 증가하고, IDgenetix® 테스트 보고서는 81% 증가했습니다. 2024년 9월 30일 현재 회사의 현금 보유액은 2억 7,980만 달러였습니다.
Castle Biosciences (CSTL) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires en hausse de 39%, atteignant 85,8 millions de dollars par rapport à celui du troisième trimestre 2023. Le nombre total de rapports de tests a augmenté de 41%, atteignant 26 010. L'entreprise a relevé ses prévisions de chiffre d'affaires pour l'année 2024 entre 320-330 millions de dollars, contre 275-300 millions de dollars précédemment. Les faits marquants du troisième trimestre incluent une marge brute de 79%, un revenu net de 2,3 millions de dollars et un EBITDA ajusté de 21,6 millions de dollars. Une croissance notable a été observée dans plusieurs tests, les rapports de tests TissueCypher® Barrett's Esophagus augmentant de 115% et ceux de IDgenetix® augmentant de 81%. La position de liquidités de l'entreprise s'élevait à 279,8 millions de dollars au 30 septembre 2024.
Castle Biosciences (CSTL) berichtete über starke Finanz Ergebnisse im dritten Quartal 2024, mit einem Umsatzanstieg von 39% auf 85,8 Millionen Dollar im Vergleich zum dritten Quartal 2023. Die Gesamtzahl der Testberichte stieg um 41% auf 26.010. Das Unternehmen hob seine Umsatzprognose für das Gesamtjahr 2024 auf 320-330 Millionen Dollar, von vorher 275-300 Millionen Dollar. Die Highlights des dritten Quartals umfassen eine Bruttomarge von 79%, einen Nettogewinn von 2,3 Millionen Dollar und ein bereinigtes EBITDA von 21,6 Millionen Dollar. Es wurde ein bemerkenswerter Anstieg bei mehreren Tests verzeichnet, wobei die Testberichte für TissueCypher® Barrett's Esophagus um 115% zulegten und die Berichte für IDgenetix® um 81% anstiegen. Die Liquiditätsposition des Unternehmens betrug zum 30. September 2024 279,8 Millionen Dollar.
- Revenue grew 39% YoY to $85.8M in Q3 2024
- Total test reports increased 41% to 26,010
- Raised full-year revenue guidance to $320-330M
- Achieved net income of $2.3M vs loss of $6.9M in Q3 2023
- Strong cash position of $279.8M
- TissueCypher test reports grew 115% YoY
- IDgenetix test reports increased 81% YoY
- MyPath Melanoma test reports decreased 8% YoY
- Net negative revenue adjustments of $0.6M for prior period tests
Insights
The Q3 2024 results showcase remarkable financial performance with
Test volume growth is particularly impressive, with total deliveries up
The clinical validation data for DecisionDx-SCC is particularly significant, with two major studies confirming its utility in guiding adjuvant radiation therapy decisions. The test's ability to identify patients who would benefit from ART represents a major advancement in personalized treatment planning.
The CONNECTION study results for DecisionDx-Melanoma are equally impressive, showing potential to reduce unnecessary sentinel lymph node biopsies by up to
Q3 2024 revenue increased
Q3 2024 total test reports increased
Raising full-year 2024 revenue guidance to
Conference call and webcast today at 4:30 p.m. ET
“We are thrilled with our third quarter performance, which reflects the continued success of our growth initiatives and the dedication of our team,” said Derek Maetzold, president and chief executive officer of Castle Biosciences. “We believe these outstanding third quarter results demonstrate the strength of our business model and the trust our patients and clinicians place in us. Moreover, we are especially proud of our operating results, which show our ability to translate growth into profitability. This performance is a testament to our team's hard work – that is, the people who call Castle home – and our focus on creating value for our patients, clinicians and stockholders.
“Our third quarter results were strong across our therapeutic areas, with significant test adoption growth for our core products, which we believe was driven in part by expanded clinical evidence supporting their use. We were particularly excited about the recent publication of a new study which confirmed the use of DecisionDx®-SCC in identifying which patients with high-risk cutaneous squamous cell carcinoma (SCC) will have a low or high likelihood of benefiting from adjuvant radiation therapy (ART). Importantly, this was the second study this year to demonstrate this utility of our test, as well as the second largest study ever published that evaluates the effectiveness of ART in SCC. Another DecisionDx-SCC related publication from earlier this year, Arron et al., was the largest study to date evaluating the effectiveness of ART in SCC.
“Looking forward, we are encouraged by the strength of our execution and the fundamentals of our business. As such, we are raising our full-year 2024 total revenue guidance to
Third Quarter Ended September 30, 2024, Financial and Operational Highlights
-
Revenues were
, a$85.8 million 39% increase compared to in the third quarter of 2023. Included in revenue for the period were revenue adjustments related to tests delivered in prior periods. These prior period revenue adjustments for the quarter were$61.5 million of net negative revenue adjustments, compared to$0.6 million of net positive revenue adjustments for the same period in 2023.$0.9 million -
Adjusted Revenues, which exclude the effects of revenue adjustments related to tests delivered in prior periods, were
, a$86.3 million 42% increase compared to for the same period in 2023.$60.6 million -
Delivered 26,010 total test reports in the third quarter of 2024, an increase of
41% compared to 18,409 in the same period of 2023:-
DecisionDx®-Melanoma test reports delivered in the quarter were 9,367, compared to 8,559 in the third quarter of 2023, an increase of
9% . -
DecisionDx-SCC test reports delivered in the quarter were 4,195, compared to 2,820 in the third quarter of 2023, an increase of
49% . -
MyPath® Melanoma test reports delivered in the quarter were 933, compared to 1,011 in the third quarter of 2023, a decrease of
8% . -
TissueCypher® Barrett’s Esophagus test reports delivered in the quarter were 6,073, compared to 2,829 in the third quarter of 2023, an increase of
115% . -
IDgenetix® test reports delivered in the quarter were 5,045, compared to 2,791 in the third quarter of 2023, an increase of
81% . - DecisionDx®-UM test reports delivered in the quarter were 397, compared to 399 in the third quarter of 2023.
-
DecisionDx®-Melanoma test reports delivered in the quarter were 9,367, compared to 8,559 in the third quarter of 2023, an increase of
-
Gross margin was
79% , and Adjusted Gross Margin was82% , compared to78% and81% , respectively, for the same periods in 2023. -
Net cash provided by operations was
, compared to$23.3 million for the same period in 2023.$5.0 million -
Net income, which includes non-cash stock-based compensation expense of
, was$13.0 million , compared to a net loss of$2.3 million for the same period in 2023.$(6.9) million -
Adjusted EBITDA was
, compared to$21.6 million for the same period in 2023.$6.6 million
Nine Months Ended September 30, 2024, Financial and Operational Highlights
-
Revenues were
, a$245.8 million 60% increase compared to during the same period in 2023. Included in revenue for the period were revenue adjustments related to tests delivered in prior periods. These prior period revenue adjustments for the nine months ended September 30, 2024, were$153.7 million of net negative revenue adjustments, compared to$1.3 million of net negative revenue adjustments for the same period in 2023.$3.1 million -
Adjusted Revenues, which exclude the effects of revenue adjustments related to tests delivered in prior periods, were
, a$247.1 million 58% increase compared to for the same period in 2023.$156.8 million -
Delivered 72,000 total test reports in the nine months ended September 30, 2024, an increase of
44% compared to 50,145 in the same period of 2023:-
DecisionDx-Melanoma test reports delivered in the nine months ended September 30, 2024, were 27,336, compared to 24,739 for the same period in 2023, an increase of
10% . -
DecisionDx-SCC test reports delivered in the nine months ended September 30, 2024, were 12,049, compared to 7,912 for the same period in 2023, an increase of
52% . -
MyPath Melanoma test reports delivered in the nine months ended September 30, 2024, were 3,030, compared to 2,944 for the same period in 2023, an increase of
3% . -
TissueCypher Barrett’s Esophagus test reports delivered in the nine months ended September 30, 2024, were 14,284, compared to 5,659 for the same period in 2023, an increase of
152% . -
IDgenetix test reports delivered in the nine months ended September 30, 2024, were 14,026, compared to 7,622 for the same period in 2023, an increase of
84% . - DecisionDx-UM test reports delivered in the nine months ended September 30, 2024, were 1,275, compared to 1,269 for the same period in 2023.
-
DecisionDx-Melanoma test reports delivered in the nine months ended September 30, 2024, were 27,336, compared to 24,739 for the same period in 2023, an increase of
-
Gross margin for the nine months ended September 30, 2024, was
79% , and Adjusted Gross Margin was82% . -
Net cash provided by operations was
, compared to$40.5 million net cash used in operations for the same period in 2023.$24.2 million -
Net income for the nine months ended September 30, 2024, which includes non-cash stock-based compensation expense of
, was$38.9 million , compared to a net loss of$8.7 million for the same period in 2023.$(54.9) million -
Adjusted EBITDA for the nine months ended September 30, 2024, was
, compared to$53.7 million for the same period in 2023.$(13.8) million
Cash, Cash Equivalents and Marketable Investment Securities
As of September 30, 2024, the Company’s cash, cash equivalents and marketable investment securities totaled
2024 Outlook
Based upon revenue generated through September 30, 2024, the Company is increasing its guidance for anticipated total revenue in 2024 to between
Third Quarter and Recent Accomplishments and Highlights
Dermatology
- DecisionDx-SCC: The Company presented new data demonstrating the DecisionDx-SCC test provided more precise risk stratification than Brigham and Women's Hospital (BWH) staging alone to guide intensified treatment for immune suppressed patients with high-risk SCC. Specifically, the data demonstrated the ability of DecisionDx-SCC to provide clinically impactful risk stratification in high-risk SCC patient sub-populations (i.e., patients with suppressed immune systems in this study) to guide potential treatment intensification, such as ART. In the study, patients with lower-stage BWH T1-T2a SCC tumors were further stratified into distinct groups of those with more favorable and less favorable survival by the DecisionDx-SCC test, including in the T2a immunosuppressed patient subset which showed a higher rate of metastasis. See the Company’s news release from September 27, 2024, for more information.
- DecisionDx-SCC: The Company also announced the publication of a new study, Ruiz et al., confirming use of the DecisionDx-SCC test to guide patient selection and decision-making related to the use of ART in patients with high-risk SCC based on the ability of the test to identify patients likely to benefit from treatment. This is the second study to demonstrate the ability of DecisionDx-SCC to identify patients who are either more likely or less likely to benefit from ART, confirmed in an independent cohort of high-risk SCC patients. The first was demonstrated in a study by Arron et al. published in May 2024. See the Company’s news release from September 5, 2024, and the published paper for more information.
-
DecisionDx-Melanoma: The Company presented new data from a prospective, multicenter CONNECTION study that indicated using DecisionDx-Melanoma test results to guide sentinel lymph node biopsy (SLNB) decisions in patients with T1 melanoma tumors could have reduced the number of unnecessary biopsies by up to
64% , which, in turn, could have reduced procedure-related complications and health care costs. Specifically, data from this study showed that DecisionDx-Melanoma can identify patients with T1 tumors with a low risk of sentinel lymph node (SLN) positivity who can safely forgo SLNB (negative predictive value of98.4% ), while maintaining very high survival rates in low-risk patients who did not have an SLNB (three-year recurrence free survival rate of99.5% ). See the Company’s news release from October 20, 2024, for more information. -
DecisionDx-Melanoma: The Company announced the publication of a new independent study further demonstrating that the DecisionDx-Melanoma test can precisely predict risk of SLN positivity to help guide risk-aligned SLNB decisions, potentially reducing the number of unnecessary procedures and increasing the SLNB positivity yield if the procedure is performed. Specifically, data from this study showed that DecisionDx-Melanoma can identify patients with a low risk of SLN positivity who can safely forgo SLNB (negative predictive value of
100.0% ). The results of this study demonstrate that DecisionDx-Melanoma can allow for more precise and personalized management of melanoma patients, improving patient selection for the SLNB surgical procedure and reducing unnecessary procedures and their associated healthcare costs. See the Company’s news release from September 11, 2024, and the published paper for more information.
Gastroenterology
-
The Company shared new data supporting the ability of the TissueCypher Barrett’s Esophagus test to independently predict risk of progression to esophageal cancer in patients with Barrett’s esophagus (BE) at the American Foregut Society (AFS) 2024 Annual Meeting in
Denver . The data showed that TissueCypher alone outperformed all prediction models that combine TissueCypher results with clinicopathologic risk factors, along with a second study that demonstrated that TissueCypher significantly influenced physician management decisions for patients with non-dysplastic BE and enabled risk-aligned clinical management, such as endoscopic eradication therapy for patients identified as high or intermediate risk and long-interval surveillance for patients identified as low-risk for progression to high grade dysplasia or esophageal adenocarcinoma. See the Company’s news release from September 23, 2024, for more information.
Corporate
The Company announced that Kristen Oelschlager, R.N., Castle’s chief operating officer, was named the 2024 Jon W. McGarity Arizona Bioscience Leader of the Year. The award, presented by the Arizona Bioindustry Association, recognized Oelschlager for her outstanding leadership that has contributed significantly to the progression of the bioscience industry in
Conference Call and Webcast Details
Castle Biosciences will hold a conference call on Monday, November 4, 2024, at 4:30 p.m. Eastern time to discuss its third quarter 2024 results and provide a corporate update.
A live webcast of the conference call can be accessed here: https://events.q4inc.com/attendee/435529710 or via the webcast link on the Investor Relations page of the Company’s website, https://ir.castlebiosciences.com/overview/default.aspx. Please access the webcast at least 10 minutes before the conference call start time. An archive of the webcast will be available on the Company’s website until November 25, 2024.
To access the live conference call via phone, please dial 833 470 1428 from
There will be a brief Question & Answer session following management commentary.
Use of Non-GAAP Financial Measures (UNAUDITED)
In this release, we use the metrics of Adjusted Revenues, Adjusted Gross Margin and Adjusted EBITDA, which are non-GAAP financial measures and are not calculated in accordance with generally accepted accounting principles in
We use Adjusted Revenues, Adjusted Gross Margin and Adjusted EBITDA internally because we believe these metrics provide useful supplemental information in assessing our revenue and operating performance reported in accordance with GAAP, respectively. We believe that Adjusted Revenues, when used in conjunction with our test report volume information, facilitates investors’ analysis of our current-period revenue performance and average selling price performance by excluding the effects of revenue adjustments related to test reports delivered in prior periods, since these adjustments may not be indicative of the current or future performance of our business. We believe that providing Adjusted Revenues may also help facilitate comparisons to our historical periods. Adjusted Gross Margin is calculated using Adjusted Revenues and therefore excludes the impact of revenue adjustments related to test reports delivered in prior periods, which we believe is useful to investors as described above. We further exclude acquisition-related intangible asset amortization in the calculation of Adjusted Gross Margin. We believe that excluding acquisition-related intangible asset amortization may facilitate gross margin comparisons to historical periods and may be useful in assessing current-period performance without regard to the historical accounting valuations of intangible assets, which are applicable only to tests we acquired rather than internally developed. We believe Adjusted EBITDA may enhance an evaluation of our operating performance because it excludes the impact of prior decisions made about capital investment, financing, investing and certain expenses we believe are not indicative of our ongoing performance. However, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes.
These non-GAAP financial measures are not meant to be considered in isolation or used as substitutes for net revenues, gross margin or net income (loss) reported in accordance with GAAP; should be considered in conjunction with our financial information presented in accordance with GAAP; have no standardized meaning prescribed by GAAP; are unaudited; and are not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future, there may be other items that we may exclude for purposes of these non-GAAP financial measures, and we may in the future cease to exclude items that we have historically excluded for purposes of these non-GAAP financial measures. Likewise, we may determine to modify the nature of adjustments to arrive at these non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measure as used by us in this press release and the accompanying reconciliation tables have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Accordingly, investors should not place undue reliance on non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables at the end of this release.
About Castle Biosciences
Castle Biosciences (Nasdaq: CSTL) is a leading diagnostics company improving health through innovative tests that guide patient care. The Company aims to transform disease management by keeping people first: patients, clinicians, employees and investors.
Castle’s current portfolio consists of tests for skin cancers, Barrett’s esophagus, mental health conditions and uveal melanoma. Additionally, the Company has active research and development programs for tests in other diseases with high clinical need, including its test in development to help guide systemic therapy selection for patients with moderate-to-severe, atopic dermatitis, psoriasis and related conditions. To learn more, please visit www.CastleBiosciences.com and connect with us on LinkedIn, Facebook, X and Instagram.
DecisionDx-Melanoma, DecisionDx-CMSeq, i31-SLNB, i31-ROR, DecisionDx-SCC, MyPath Melanoma, DiffDx-Melanoma, TissueCypher, IDgenetix, DecisionDx-UM, DecisionDx-PRAME and DecisionDx-UMSeq are trademarks of Castle Biosciences, Inc.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning our expectations regarding: (i) our 2024 total revenue guidance of
CASTLE BIOSCIENCES, INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(UNAUDITED) |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
NET REVENUES |
$ |
85,782 |
|
|
$ |
61,493 |
|
|
$ |
245,758 |
|
|
$ |
153,668 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of amortization of acquired intangible asset) |
|
15,609 |
|
|
|
11,319 |
|
|
|
44,022 |
|
|
|
32,559 |
|
Research and development |
|
12,323 |
|
|
|
12,923 |
|
|
|
40,268 |
|
|
|
40,624 |
|
Selling, general and administrative |
|
50,499 |
|
|
|
44,619 |
|
|
|
150,082 |
|
|
|
136,062 |
|
Amortization of acquired intangible asset |
|
2,272 |
|
|
|
2,272 |
|
|
|
6,766 |
|
|
|
6,742 |
|
Total operating expenses, net |
|
80,703 |
|
|
|
71,133 |
|
|
|
241,138 |
|
|
|
215,987 |
|
Operating income (loss) |
|
5,079 |
|
|
|
(9,640 |
) |
|
|
4,620 |
|
|
|
(62,319 |
) |
Interest income |
|
3,404 |
|
|
|
2,769 |
|
|
|
9,544 |
|
|
|
7,504 |
|
Interest expense |
|
(201 |
) |
|
|
(2 |
) |
|
|
(485 |
) |
|
|
(9 |
) |
Income (loss) before income taxes |
|
8,282 |
|
|
|
(6,873 |
) |
|
|
13,679 |
|
|
|
(54,824 |
) |
Income tax expense |
|
6,013 |
|
|
|
32 |
|
|
|
5,024 |
|
|
|
62 |
|
Net income (loss) |
$ |
2,269 |
|
|
$ |
(6,905 |
) |
|
$ |
8,655 |
|
|
$ |
(54,886 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.08 |
|
|
$ |
(0.26 |
) |
|
$ |
0.31 |
|
|
$ |
(2.05 |
) |
Diluted |
$ |
0.08 |
|
|
$ |
(0.26 |
) |
|
$ |
0.30 |
|
|
$ |
(2.05 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
27,840 |
|
|
|
26,834 |
|
|
|
27,659 |
|
|
|
26,725 |
|
Diluted |
|
29,401 |
|
|
|
26,834 |
|
|
|
28,838 |
|
|
|
26,725 |
|
|
|
|
|
|
|
|
|
Stock-Based Compensation Expense
Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows (in thousands):
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||
Cost of sales (exclusive of amortization of acquired intangible assets) |
$ |
1,464 |
|
$ |
1,245 |
|
$ |
4,179 |
$ |
3,719 |
Research and development |
|
2,345 |
|
|
2,682 |
|
|
7,611 |
|
7,755 |
Selling, general and administrative |
|
9,218 |
|
|
9,116 |
|
|
27,091 |
|
27,943 |
Total stock-based compensation expense |
$ |
13,027 |
|
$ |
13,043 |
|
$ |
38,881 |
$ |
39,417 |
CASTLE BIOSCIENCES, INC. |
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
|||||||||||||
(UNAUDITED) |
|||||||||||||
(in thousands) |
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
Net income (loss) |
$ |
2,269 |
|
$ |
(6,905 |
) |
|
$ |
8,655 |
|
$ |
(54,886 |
) |
Other comprehensive income: |
|
|
|
|
|
|
|
||||||
Net unrealized gain on marketable investment securities |
|
645 |
|
|
73 |
|
|
|
337 |
|
|
310 |
|
Comprehensive income (loss) |
$ |
2,914 |
|
$ |
(6,832 |
) |
|
$ |
8,992 |
|
$ |
(54,576 |
) |
CASTLE BIOSCIENCES, INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands) |
|||||||
|
|
||||||
|
|
||||||
|
September 30,
|
|
December 31,
|
||||
ASSETS |
(unaudited) |
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
94,959 |
|
|
$ |
98,841 |
|
Marketable investment securities |
|
184,826 |
|
|
|
144,258 |
|
Accounts receivable, net |
|
50,261 |
|
|
|
38,302 |
|
Inventory |
|
6,572 |
|
|
|
7,942 |
|
Prepaid expenses and other current assets |
|
8,154 |
|
|
|
6,292 |
|
Total current assets |
|
344,772 |
|
|
|
295,635 |
|
Long-term accounts receivable, net |
|
1,106 |
|
|
|
1,191 |
|
Property and equipment, net |
|
44,383 |
|
|
|
25,433 |
|
Operating lease assets |
|
11,904 |
|
|
|
12,306 |
|
Goodwill and other intangible assets, net |
|
110,569 |
|
|
|
117,335 |
|
Other assets – long-term |
|
1,831 |
|
|
|
1,440 |
|
Total assets |
$ |
514,565 |
|
|
$ |
453,340 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
6,810 |
|
|
$ |
10,268 |
|
Accrued compensation |
|
27,672 |
|
|
|
28,945 |
|
Operating lease liabilities |
|
1,745 |
|
|
|
1,137 |
|
Other accrued and current liabilities |
|
8,068 |
|
|
|
7,317 |
|
Total current liabilities |
|
44,295 |
|
|
|
47,667 |
|
Long-term debt |
|
10,015 |
|
|
|
— |
|
Noncurrent operating lease liabilities |
|
14,691 |
|
|
|
14,173 |
|
Noncurrent finance lease liabilities |
|
289 |
|
|
|
25 |
|
Deferred tax liability |
|
4,220 |
|
|
|
206 |
|
Total liabilities |
|
73,510 |
|
|
|
62,071 |
|
Stockholders’ Equity |
|
|
|
||||
Common stock |
|
28 |
|
|
|
27 |
|
Additional paid-in capital |
|
650,270 |
|
|
|
609,477 |
|
Accumulated deficit |
|
(209,716 |
) |
|
|
(218,371 |
) |
Accumulated other comprehensive income |
|
473 |
|
|
|
136 |
|
Total stockholders’ equity |
|
441,055 |
|
|
|
391,269 |
|
Total liabilities, and stockholders’ equity |
$ |
514,565 |
|
|
$ |
453,340 |
|
CASTLE BIOSCIENCES, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
(in thousands) |
|||||||
|
|
||||||
|
Nine Months Ended
|
||||||
|
2024 |
|
2023 |
||||
OPERATING ACTIVITIES |
|
|
|
||||
Net income (loss) |
$ |
8,655 |
|
|
$ |
(54,886 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
10,229 |
|
|
|
9,106 |
|
Stock-based compensation expense |
|
38,881 |
|
|
|
39,417 |
|
Deferred income taxes |
|
3,708 |
|
|
|
13 |
|
Accretion of discounts on marketable investment securities |
|
(5,072 |
) |
|
|
(3,851 |
) |
Other |
|
208 |
|
|
|
284 |
|
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(11,874 |
) |
|
|
(13,779 |
) |
Prepaid expenses and other current assets |
|
(1,679 |
) |
|
|
(892 |
) |
Inventory |
|
1,370 |
|
|
|
(1,789 |
) |
Operating lease assets |
|
1,002 |
|
|
|
(590 |
) |
Other assets |
|
(35 |
) |
|
|
(455 |
) |
Accounts payable |
|
(3,802 |
) |
|
|
2,693 |
|
Operating lease liabilities |
|
(863 |
) |
|
|
1,093 |
|
Accrued compensation |
|
(1,273 |
) |
|
|
(1,953 |
) |
Other accrued and current liabilities |
|
1,046 |
|
|
|
1,376 |
|
Net cash provided by (used in) operating activities |
|
40,501 |
|
|
|
(24,213 |
) |
|
|
|
|
||||
INVESTING ACTIVITIES |
|
|
|
||||
Purchases of property and equipment |
|
(20,759 |
) |
|
|
(9,828 |
) |
Proceeds from sale of property and equipment |
|
11 |
|
|
|
10 |
|
Purchases of marketable investment securities |
|
(158,409 |
) |
|
|
(136,693 |
) |
Proceeds from maturities of marketable investment securities |
|
123,250 |
|
|
|
138,000 |
|
Net cash used in investing activities |
|
(55,907 |
) |
|
|
(8,511 |
) |
|
|
|
|
||||
FINANCING ACTIVITIES |
|
|
|
||||
Proceeds from exercise of common stock options |
|
1,644 |
|
|
|
197 |
|
Payment of employees’ taxes on vested restricted stock units |
|
(2,383 |
) |
|
|
(1,119 |
) |
Proceeds from contributions to the employee stock purchase plan |
|
2,334 |
|
|
|
2,027 |
|
Repayment of principal portion of finance lease liabilities |
|
(71 |
) |
|
|
(106 |
) |
Proceeds from issuance of term debt |
|
10,000 |
|
|
|
— |
|
Net cash provided by financing activities |
|
11,524 |
|
|
|
999 |
|
|
|
|
|
||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
(3,882 |
) |
|
|
(31,725 |
) |
Beginning of period |
|
98,841 |
|
|
|
122,948 |
|
End of period |
$ |
94,959 |
|
|
$ |
91,223 |
|
CASTLE BIOSCIENCES, INC. |
|||||||||||||||
Reconciliation of Non-GAAP Financial Measures (UNAUDITED) |
|||||||||||||||
The table below presents the reconciliation of adjusted revenues and adjusted gross margin, which are non-GAAP financial measures. See "Use of Non-GAAP Financial Measures (UNAUDITED)" above for further information regarding the Company's use of non-GAAP financial measures. |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
(in thousands) |
|
|
|
|
|
|
|
||||||||
Adjusted revenues |
|
|
|
|
|
|
|
||||||||
Net revenues (GAAP) |
$ |
85,782 |
|
|
$ |
61,493 |
|
|
$ |
245,758 |
|
|
$ |
153,668 |
|
Revenue associated with test reports delivered in prior periods |
|
552 |
|
|
|
(883 |
) |
|
|
1,345 |
|
|
|
3,085 |
|
Adjusted revenues (Non-GAAP) |
$ |
86,334 |
|
|
$ |
60,610 |
|
|
$ |
247,103 |
|
|
$ |
156,753 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin |
|
|
|
|
|
|
|
||||||||
Gross margin (GAAP)1 |
$ |
67,901 |
|
|
$ |
47,902 |
|
|
$ |
194,970 |
|
|
$ |
114,367 |
|
Amortization of acquired intangible assets |
|
2,272 |
|
|
|
2,272 |
|
|
|
6,766 |
|
|
|
6,742 |
|
Revenue associated with test reports delivered in prior periods |
|
552 |
|
|
|
(883 |
) |
|
|
1,345 |
|
|
|
3,085 |
|
Adjusted gross margin (Non-GAAP) |
$ |
70,725 |
|
|
$ |
49,291 |
|
|
$ |
203,081 |
|
|
$ |
124,194 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin percentage (GAAP)2 |
|
79.2 |
% |
|
|
77.9 |
% |
|
|
79.3 |
% |
|
|
74.4 |
% |
Adjusted gross margin percentage (Non-GAAP)3 |
|
81.9 |
% |
|
|
81.3 |
% |
|
|
82.2 |
% |
|
|
79.2 |
% |
_____________________ | |||||||||||||||
1. Calculated as net revenues (GAAP) less the sum of cost of sales (exclusive of amortization of acquired intangible assets) and amortization of acquired intangible assets. |
|||||||||||||||
2. Calculated as gross margin (GAAP) divided by net revenues (GAAP). |
|||||||||||||||
3. Calculated as adjusted gross margin (Non-GAAP) divided by adjusted revenues (Non-GAAP). |
|||||||||||||||
The table below presents the reconciliation of adjusted EBITDA, which is a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures (UNAUDITED)" above for further information regarding the Company's use of non-GAAP financial measures. |
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
(in thousands) |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
2,269 |
|
|
$ |
(6,905 |
) |
|
$ |
8,655 |
|
|
$ |
(54,886 |
) |
Interest income |
|
(3,404 |
) |
|
|
(2,769 |
) |
|
|
(9,544 |
) |
|
|
(7,504 |
) |
Interest expense |
|
201 |
|
|
|
2 |
|
|
|
485 |
|
|
|
9 |
|
Income tax expense |
|
6,013 |
|
|
|
32 |
|
|
|
5,024 |
|
|
|
62 |
|
Depreciation and amortization expense |
|
3,541 |
|
|
|
3,174 |
|
|
|
10,229 |
|
|
|
9,106 |
|
Stock-based compensation expense |
|
13,027 |
|
|
|
13,043 |
|
|
|
38,881 |
|
|
|
39,417 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
21,647 |
|
|
$ |
6,577 |
|
|
$ |
53,730 |
|
|
$ |
(13,796 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104938614/en/
Investor Relations Contact:
Camilla Zuckero
czuckero@castlebiosciences.com
281-906-3868
Media Contact:
amarshall@castlebiosciences.com
Source: Castle Biosciences Inc.
FAQ
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