Q2 2024 revenue increased 74% over Q2 2023 to
$87 million
Q2 2024 total test reports increased 49% over
Q2 2023
Raising full-year 2024 revenue guidance to
$275-300 million from $255-265 million
Conference call and webcast today at 4:30 p.m.
ET
Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving
health through innovative tests that guide patient care, today
announced its financial results for the second quarter and six
months ended June 30, 2024.
“We achieved another quarter of exceptional performance, thanks
to the hard work of our talented team and strength of our
innovative test portfolio,” said Derek Maetzold, president and
chief executive officer of Castle Biosciences. “We were especially
pleased with the substantial top-line growth as well as growth in
test report volumes across our therapeutic areas."
“Regarding our DecisionDx®-SCC test, we were also pleased to see
the publication of our first study evaluating the use of
DecisionDx-SCC to guide adjuvant radiation therapy (ART)
recommendations in patients diagnosed with high-risk cutaneous
squamous cell carcinoma (SCC). This study, which is the largest
study to evaluate the effectiveness of ART in SCC, found that the
DecisionDx-SCC test can identify patients who are considering ART
under traditional clinicopathologic risk features and have a low
likelihood of metastasis and a low likelihood of a receiving a
clinical benefit from ART – thus enabling deferral of radiation
therapy and avoidance of complications and associated impacts on
the patient’s quality of life. This study was published in the
American Society for Radiation Oncology’s flagship journal,
International Journal of Radiation Oncology, Biology, Physics (also
known as the Red Journal).
“Regarding our TissueCypher® Barrett’s Esophagus test, the
American Gastroenterological Association (AGA) recently recognized
in its Clinical Practice Guideline that there is a high-risk subset
of non-dysplastic Barrett’s esophagus patients who may benefit from
early intervention with endoscopic eradication therapy (EET) and
importantly, acknowledged that tissue-based biomarker testing,
including the tissue systems pathology test (i.e., TissueCypher,
also known as TSP-9) can help identify these patients.
“We believe we are well-positioned for near- and long-term
success, supported by the potential for continued growth across our
portfolio, as well as by our robust balance sheet and proven track
record of strong execution. I am proud of what we have
accomplished, and we will continue to work to operate with speed
and agility to deliver value to patients, clinicians and
stockholders alike."
Second Quarter Ended June 30, 2024, Financial and Operational
Highlights
- Revenues were $87.0 million, a 74% increase compared to $50.1
million in the second 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 $0.4 million of net positive revenue adjustments, compared to
$0.1 million of net negative revenue adjustments for the same
period in 2023.
- Adjusted Revenues, which exclude the effects of revenue
adjustments related to tests delivered in prior periods, were $86.6
million, a 72% increase compared to $50.2 million for the same
period in 2023.
- Delivered 25,102 total test reports in the second quarter of
2024, an increase of 49% compared to 16,820 in the same period of
2023:
- DecisionDx®-Melanoma test reports delivered in the quarter were
9,585, compared to 8,597 in the second quarter of 2023, an increase
of 11%.
- DecisionDx-SCC test reports delivered in the quarter were
4,277, compared to 2,681 in the second quarter of 2023, an increase
of 60%.
- MyPath® Melanoma test reports delivered in the quarter were
1,099, compared to 953 in the second quarter of 2023, an increase
of 15%.
- TissueCypher Barrett’s Esophagus test reports delivered in the
quarter were 4,782, compared to 1,447 in the second quarter of
2023, an increase of 230%.
- IDgenetix® test reports delivered in the quarter were 4,903,
compared to 2,681 in the second quarter of 2023, an increase of
83%.
- DecisionDx®-UM test reports delivered in the quarter were 456,
compared to 461 in the second quarter of 2023, a decrease of
1%.
- Gross margin was 81%, and Adjusted Gross Margin was 83%,
compared to 74% and 78%, respectively, for the same periods in
2023.
- Net cash provided by operations was $24.0 million, compared to
$3.8 million net cash used in operations for the same period in
2023.
- Net income, which includes non-cash stock-based compensation
expense of $13.2 million, was $8.9 million, compared to a net loss
of $(18.8) million for the same period in 2023.
- Adjusted EBITDA was $21.5 million, compared to $(5.3) million
for the same period in 2023.
Six Months Ended June 30, 2024, Financial and Operational
Highlights
- Revenues were $160.0 million, a 74% increase compared to $92.2
million 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 six months
ended June 30, 2024, were $1.0 million of net positive revenue
adjustments, compared to $1.7 million of net negative revenue
adjustments for the same period in 2023.
- Adjusted Revenues, which exclude the effects of revenue
adjustments related to tests delivered in prior periods, were
$159.0 million, a 69% increase compared to $93.9 million for the
same period in 2023.
- Delivered 45,990 total test reports in the six months ended
June 30, 2024, an increase of 45% compared to 31,736 in the same
period of 2023:
- DecisionDx-Melanoma test reports delivered in the six months
ended June 30, 2024, were 17,969, compared to 16,180 for the same
period in 2023, an increase of 11%.
- DecisionDx-SCC test reports delivered in the six months ended
June 30, 2024, were 7,854, compared to 5,092 for the same period in
2023, an increase of 54%.
- MyPath Melanoma test reports delivered in the six months ended
June 30, 2024, were 2,097, compared to 1,933 for the same period in
2023, an increase of 8%.
- TissueCypher Barrett’s Esophagus test reports delivered in the
six months ended June 30, 2024, were 8,211, compared to 2,830 for
the same period in 2023, an increase of 190%.
- IDgenetix test reports delivered in the six months ended June
30, 2024, were 8,981, compared to 4,831 for the same period in
2023, an increase of 86%.
- DecisionDx-UM test reports delivered in the six months ended
June 30, 2024, were 878, compared to 870 for the same period in
2023, an increase of 1%.
- Gross margin for the six months ended June 30, 2024, was 79%,
and Adjusted Gross Margin was 82%.
- Net cash provided by operations was $17.2 million, compared to
$29.2 million net cash used in operations for the same period in
2023.
- Net income for the six months ended June 30, 2024, which
includes non-cash stock-based compensation expense of $25.9
million, was $6.4 million, compared to a net loss of $(48.0)
million for the same period in 2023.
- Adjusted EBITDA for the six months ended June 30, 2024, was
$32.1 million, compared to $(20.4) million for the same period in
2023.
Cash, Cash Equivalents and Marketable Investment
Securities
As of June 30, 2024, the Company’s cash, cash equivalents and
marketable investment securities totaled $259.7 million.
2024 Outlook
Based upon revenue generated through June 30, 2024, the Company
is increasing its guidance for anticipated total revenue in 2024 to
between $275–300 million, compared to the previously provided
guidance of between $255–265 million.
Second Quarter and Recent Accomplishments and
Highlights
Dermatology
- DecisionDx-SCC: The Company announced the publication of a
study in the International Journal of Radiation Oncology, Biology,
Physics (Red Journal) demonstrating the ability of the
DecisionDx-SCC test to identify high-risk SCC patients who are
likely to benefit from ART to reduce metastatic disease
progression, as well as high-risk patients who are unlikely to
benefit from ART and who, therefore, may consider deferring
treatment. This study is the single largest study ever conducted to
evaluate the effectiveness of ART in patients diagnosed with SCC
and demonstrates the impact of the test in guiding decision-making
for recommending ART. See the Company’s news release from May 29,
2024, for more information.
- DecisionDx-SCC: The Company also shared new data that supported
the utility of DecisionDx-SCC in patients with high-risk SCC tumors
located on the head and neck at the 56th American College of Mohs
Surgery (ACMS) Annual Meeting in Phoenix. Data presented
demonstrated that testing with DecisionDx-SCC significantly
increased the prediction accuracy of metastatic events, when used
alone and when combined with National Comprehensive Cancer Network
(NCCN) guidelines, Brigham and Women’s Hospital (BWH) staging or
American Joint Committee on Cancer Staging Manual, 8th Edition
(AJCC8) staging, to better guide risk-aligned patient care
decisions regarding metastatic surveillance or the use of adjuvant
treatments like radiation. See the Company’s news release from May
3, 2024, for more information.
- DecisionDx-Melanoma: The Company presented new data relating to
its DecisionDx-Melanoma test at the 2024 American Society of
Clinical Oncology (ASCO) Annual Meeting in Chicago, demonstrating
the test’s ability to identify patients with localized cutaneous
melanoma at the highest risk of metastasis to the central nervous
system (CNS). Specifically, the study showed that
DecisionDx-Melanoma can identify patients with earlier-stage
melanoma who have a higher risk of CNS metastasis within the first
three years post-diagnosis. These higher-risk patients may benefit
from more frequent imaging surveillance to identify CNS metastases
earlier to improve patient survival. See the Company’s news release
from May 30, 2024, for more information.
Gastroenterology
- The Company announced that the AGA published new clinical
practice guidelines for EET to treat Barrett’s esophagus (BE) and
prevent its progression to esophageal adenocarcinoma. These
guidelines recognized that there is a high-risk subset of patients
with non-dysplastic BE (NDBE) who may benefit from early
intervention with EET and acknowledged the role that tissue-based
biomarkers, including TissueCypher, can play in identifying these
patients. See the Company’s news release from June 24, 2024, for
more information.
- The Company also shared three abstracts supporting the ability
of its TissueCypher test to predict risk of progression to
esophageal cancer in patients with BE at the Digestive Disease Week
(DDW) 2024 Annual Meeting in Washington, D.C. The data that was
shared further expanded the substantial clinical evidence
supporting TissueCypher and its ability to improve the care that BE
patients receive. See the Company’s news release from May 14, 2024,
for more information.
Mental Health
- The Company was selected as the winner of the “Best Overall
Mental Health Solution” award in the eighth annual MedTech
Breakthrough Awards program for its IDgenetix pharmacogenomic (PGx)
test. The MedTech Breakthrough Awards honor excellence and
recognize innovation, hard work and success in a range of health
and medical technology categories, attracting thousands of
nominations from over 18 countries across the world. See the
Company’s news release from May 10, 2024, for more
information.
Uveal Melanoma
- The Company announced results from the largest prospective
study to date of patients with uveal melanoma, titled “15-Gene
Expression Profile and PRAME as Integrated Prognostic Test for
Uveal Melanoma: First Report of Collaborative Ocular Oncology Group
Study No. 2 (COOG2.1),” confirming the prognostic accuracy of the
DecisionDx-UM test and providing the first prospective validation
of Preferentially Expressed Antigen in Melanoma (PRAME) status as a
risk refinement tool when considered in the context of a Class 1 or
Class 2 DecisionDx-UM result. The study data demonstrated that
together, these two tests can guide more precise and risk-aligned
decision-making for patients with UM, including referrals,
intensity of imaging surveillance and eligibility for ongoing
clinical trials. See the Company’s news release from May 8, 2024,
and the published paper in the Journal of Clinical Oncology for
more information.
Corporate
- The Company announced that its founder, president and chief
executive officer, Derek Maetzold, was named by Ernst & Young
LLP (EY) as an Entrepreneur Of The Year® 2024 Gulf South Award
winner. Now in its 38th year, Entrepreneur Of The Year is the
preeminent competitive awards program that celebrates entrepreneurs
and leaders of high-growth companies who disrupt markets,
revolutionize sectors and have a transformational impact on lives.
See the Company’s news release from June 14, 2024, for more
information.
Conference Call and Webcast Details
Castle Biosciences will hold a conference call on Monday, August
5, 2024, at 4:30 p.m. Eastern time to discuss its second quarter
2024 results and provide a corporate update.
A live webcast of the conference call can be accessed here:
https://events.q4inc.com/attendee/952012940 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 August 26, 2024.
To access the live conference call via phone, please dial 833
470 1428 from the United States, or +1 404 975 4839
internationally, at least 10 minutes prior to the start of the
call, using the conference ID 802518.
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 the United States
(GAAP). Adjusted Revenues and Adjusted Gross Margin reflect
adjustments to GAAP net revenues to exclude net positive and/or net
negative revenue adjustments recorded in the current period
associated with changes in estimated variable consideration related
to test reports delivered in previous periods. Adjusted Gross
Margin further excludes acquisition-related intangible asset
amortization. Adjusted EBITDA excludes from net income (loss):
interest income, interest expense, income tax expense (benefit),
depreciation and amortization expense, stock-based compensation
expense, change in fair value of contingent consideration and
acquisition related transaction costs.
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, 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 $275-300 million; (ii) the
potential of our tests to improve patient outcomes, including
increased survival; (iii) our continued commercial momentum in
2024; (iv) our ability to continue to develop evidence to support
the clinical utility of our tests; and (v) our ability to achieve
near- and long-term success and the continued growth of our
portfolio. The words “anticipate,” “can,” “could,” “expect,”
“goal,” “may,” “plan” and similar expressions are intended to
identify forward-looking statements, although not all
forward-looking statements contain these identifying words. We may
not actually achieve the plans, intentions, or expectations
disclosed in our forward-looking statements and you should not
place undue reliance on our forward-looking statements. Actual
results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking
statements that we make. These forward-looking statements involve
risks and uncertainties that could cause our actual results to
differ materially from those in the forward-looking statements,
including, without limitation: our assumptions or expectations
regarding continued reimbursement for our DecisionDx-SCC test at
the current rate and reimbursement for our other products and
subsequent coverage decisions, our estimated total addressable
markets for our products and product candidates and the related
expenses, capital requirements and potential needs for additional
financing, the anticipated cost, timing and success of our product
candidates, and our plans to research, develop and commercialize
new tests and our ability to successfully integrate new businesses,
assets, products or technologies acquired through acquisitions, the
effects of macroeconomic events and conditions, including inflation
and monetary supply shifts, labor shortages, liquidity concerns at,
and failures of, banks and other financial institutions or other
disruptions in the banking system or financing markets and
recession risks, supply chain disruptions, outbreaks of contagious
diseases and geopolitical events (such as the ongoing Israel-Hamas
War and Ukraine-Russia conflict), among others, on our business and
our efforts to address its impact on our business; subsequent study
or trial results and findings may contradict earlier study or trial
results and findings or may not support the results discussed in
this press release, including with respect to the tests discussed
in this press release; our planned installation of additional
equipment and supporting technology infrastructures and
implementation of certain process efficiencies may not enable us to
increase the future scalability of our TissueCypher Test; actual
application of our tests may not provide the aforementioned
benefits to patients; our newer gastroenterology and mental health
franchises may not contribute to the achievement of our long-term
financial targets as anticipated; and the risks set forth under the
heading “Risk Factors” in our Annual Report on Form 10-K for the
year ended December 31, 2023 and our Quarterly Report on Form 10-Q
for the quarter ended June 30, 2024, each filed or to be filed with
the SEC, and in our other filings with the SEC. The forward-looking
statements are applicable only as of the date on which they are
made, and we do not assume any obligation to update any
forward-looking statements, except as may be required by law.
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per
share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
NET REVENUES
$
87,002
$
50,138
$
159,976
$
92,175
OPERATING EXPENSES
Cost of sales (exclusive of amortization
of acquired intangible asset)
14,519
11,058
28,413
21,240
Research and development
14,136
13,308
27,945
27,701
Selling, general and administrative
51,088
44,681
99,583
91,443
Amortization of acquired intangible
asset
2,247
2,248
4,494
4,470
Total operating expenses, net
81,990
71,295
160,435
144,854
Operating income (loss)
5,012
(21,157
)
(459
)
(52,679
)
Interest income
3,144
2,399
6,140
4,735
Interest expense
(270
)
(3
)
(284
)
(7
)
Income (loss) before income
taxes
7,886
(18,761
)
5,397
(47,951
)
Income tax (benefit) expense
(1,034
)
16
(989
)
30
Net income (loss)
$
8,920
$
(18,777
)
$
6,386
$
(47,981
)
Earnings (loss) per share:
Basic
$
0.32
$
(0.70
)
$
0.23
$
(1.80
)
Diluted
$
0.31
$
(0.70
)
$
0.22
$
(1.80
)
Weighted-average shares outstanding:
Basic
27,646
26,733
27,566
26,670
Diluted
28,738
26,733
28,542
26,670
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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Cost of sales (exclusive of amortization
of acquired intangible assets)
$
1,401
$
1,202
$
2,715
$
2,474
Research and development
2,637
2,486
5,266
5,073
Selling, general and administrative
9,141
9,161
17,873
18,827
Total stock-based compensation expense
$
13,179
$
12,849
$
25,854
$
26,374
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Net income (loss)
$
8,920
$
(18,777
)
$
6,386
$
(47,981
)
Other comprehensive (loss)
income:
Net unrealized (loss) gain on marketable
investment securities
(61
)
(8
)
(308
)
237
Comprehensive income (loss)
$
8,859
$
(18,785
)
$
6,078
$
(47,744
)
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
June 30,
2024
December 31,
2023
ASSETS
(unaudited)
Current Assets
Cash and cash equivalents
$
85,572
$
98,841
Marketable investment securities
174,116
144,258
Accounts receivable, net
45,988
38,302
Inventory
8,013
7,942
Prepaid expenses and other current
assets
6,716
6,292
Total current assets
320,405
295,635
Long-term accounts receivable, net
1,125
1,191
Property and equipment, net
38,638
25,433
Operating lease assets
11,621
12,306
Goodwill and other intangible assets,
net
112,840
117,335
Other assets – long-term
2,683
1,440
Total assets
$
487,312
$
453,340
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities
Accounts payable
$
9,540
$
10,268
Accrued compensation
21,239
28,945
Operating lease liabilities
1,226
1,137
Other accrued and current liabilities
7,449
7,317
Total current liabilities
39,454
47,667
Long-term debt
10,008
—
Noncurrent operating lease liabilities
13,645
14,173
Noncurrent finance lease liabilities
312
25
Deferred tax liability
—
206
Total liabilities
63,419
62,071
Stockholders’ Equity
Common stock
28
27
Additional paid-in capital
636,022
609,477
Accumulated deficit
(211,985
)
(218,371
)
Accumulated other comprehensive (loss)
income
(172
)
136
Total stockholders’ equity
423,893
391,269
Total liabilities, and stockholders’
equity
$
487,312
$
453,340
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Six Months Ended
June 30,
2024
2023
OPERATING ACTIVITIES
Net income (loss)
$
6,386
$
(47,981
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
6,688
5,932
Stock-based compensation expense
25,854
26,374
Deferred income taxes
(1,542
)
13
Accretion of discounts on marketable
investment securities
(3,422
)
(2,282
)
Other
83
213
Change in operating assets and
liabilities:
Accounts receivable
(7,620
)
(7,978
)
Prepaid expenses and other current
assets
(294
)
158
Inventory
(71
)
(2,141
)
Operating lease assets
678
(469
)
Other assets
143
(80
)
Accounts payable
(1,650
)
3,071
Operating lease liabilities
(432
)
958
Accrued compensation
(7,706
)
(7,060
)
Other accrued and current liabilities
68
2,047
Net cash provided by (used in) operating
activities
17,163
(29,225
)
INVESTING ACTIVITIES
Purchases of property and equipment
(14,381
)
(7,373
)
Proceeds from sale of property and
equipment
7
8
Purchases of marketable investment
securities
(113,194
)
(86,438
)
Proceeds from maturities of marketable
investment securities
86,450
95,000
Net cash (used in) provided by investing
activities
(41,118
)
1,197
FINANCING ACTIVITIES
Proceeds from exercise of common stock
options
73
184
Payment of employees’ taxes on vested
restricted stock units
(1,089
)
(848
)
Proceeds from contributions to the
employee stock purchase plan
1,749
1,688
Repayment of principal portion of finance
lease liabilities
(47
)
(70
)
Proceeds from issuance of term debt
10,000
—
Net cash provided by financing
activities
10,686
954
NET CHANGE IN CASH AND CASH
EQUIVALENTS
(13,269
)
(27,074
)
Beginning of period
98,841
122,948
End of period
$
85,572
$
95,874
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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(in thousands)
Adjusted
revenues
Net revenues (GAAP)
$
87,002
$
50,138
$
159,976
$
92,175
Revenue associated with test reports
delivered in prior periods
(363
)
88
(959
)
1,705
Adjusted revenues (Non-GAAP)
$
86,639
$
50,226
$
159,017
$
93,880
Adjusted gross
margin
Gross margin (GAAP)1
$
70,236
$
36,832
$
127,069
$
66,465
Amortization of acquired intangible
assets
2,247
2,248
4,494
4,470
Revenue associated with test reports
delivered in prior periods
(363
)
88
(959
)
1,705
Adjusted gross margin (Non-GAAP)
$
72,120
$
39,168
$
130,604
$
72,640
Gross margin percentage (GAAP)2
80.7
%
73.5
%
79.4
%
72.1
%
Adjusted gross margin percentage
(Non-GAAP)3
83.2
%
78.0
%
82.1
%
77.4
%
______________________
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
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
(in thousands)
Adjusted
EBITDA
Net income (loss)
$
8,920
$
(18,777
)
$
6,386
$
(47,981
)
Interest income
(3,144
)
(2,399
)
(6,140
)
(4,735
)
Interest expense
270
3
284
7
Income tax (benefit) expense
(1,034
)
16
(989
)
30
Depreciation and amortization expense
3,348
3,040
6,688
5,932
Stock-based compensation expense
13,179
12,849
25,854
26,374
Adjusted EBITDA (Non-GAAP)
$
21,539
$
(5,268
)
$
32,083
$
(20,373
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240805085135/en/
Investor Relations Contact: Camilla Zuckero
czuckero@castlebiosciences.com 281-906-3868
Media Contact: Allison Marshall
amarshall@castlebiosciences.com
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