Castle Biosciences, Inc. · NASDAQ:CSTL
Castle Biosciences — Q3 2024 Earnings Presentation
29 slides from Castle Biosciences's earnings presentation, Nov 4, 2024
Slide 1: Empowering people, informing care decisions
©2024 Castle Biosciences 1 Empowering people, informing care decisions November 2024
Slide 2: Disclaimers: Forward-Looking Statements
©2024 Castle Biosciences 2 Disclaimers Forward-Looking Statements This presentation 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 harb
Slide 3: Disclaimers: Financial Information; Non-GAAP Financial Measures
©2024 Castle Biosciences 3 Disclaimers Financial Information; Non-GAAP Financial Measures In this presentation, 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 accou
Slide 4: Registered Trademarks
©2024 Castle Biosciences 4 Registered Trademarks 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.
Slide 5: Our mission and vision
©2024 Castle Biosciences 5 Improving health through innovative tests that guide patient care OUR MISSION Transforming disease management by keeping people first: patients, clinicians, employees, and investors OUR VISION
Slide 6: Proven strategy designed to drive value creation for our stakeholders
©2024 Castle Biosciences 6 Proven strategy designed to drive value creation for our stakeholders FOCUS on best/first-in-class tests with high, unmet clinical need and significant market opportunity BUILD robust clinical evidence PENETRATE target markets to further test adoption by clinicians and pay
Slide 7: Estimated ~$8B U.S. total addressable market for commercially available tests
©2024 Castle Biosciences 7 Estimated ~$8B U.S. total addressable market1 for commercially available tests D E R M A T O LO G Y G A S T R O E N T E R O LO G Y M E N T A L H E A LT H Cutaneous melanoma/ risk of metastasis, SLNB positivity risk ~130K patients classified as Stage I, II, or III2 Cutaneou
Slide 8: Building evidence showing the value of our tests
©2024 Castle Biosciences 8 Building evidence showing the value of our tests Studies1 show clinical use of our test is associated with improved melanoma specific outcomes, which means the test guides appropriate decisions and patients live longer. The test provides significantly better risk stratific
Slide 9: DecisionDx-Melanoma SEER study: individual risk of SLNB positivity and recurrence
©2024 Castle Biosciences 9 Individual risk of SLNB positivity Individual risk of recurrence ? 31-GEP Class Score Ulceration Breslow thickness Age Mitotic rate Ulceration Age Breslow thickness Mitotic rate SLN status Tumor location Collaborative study with the National Cancer Institute’s SEER Program
Slide 10: DecisionDx-Melanoma improves risk stratification in stage I melanoma compared to AJCC staging
©2024 Castle Biosciences 10 DecisionDx-Melanoma significantly improves risk stratification in stage I melanoma compared to AJCC staging DecisionDx-Melanoma compared to American Joint Committee on Cancer Staging Manual 8th Edition (AJCC8) staging for stage I cutaneous melanoma (CM) patients (n=6,883)
Slide 11: Evidence from prospective studies supporting DecisionDx-Melanoma
©2024 Castle Biosciences 11 Evidence from prospective studies supporting DecisionDx-Melanoma demonstrates: DecisionDx- Melanoma low-risk, Class 1A patients who forego an SLNB have high recurrence-free survival DecisionDx- Melanoma low-risk test results are associated with very low SLNB positive outc
Slide 12: Advancing penetration of our tests with clinicians and payers
©2024 Castle Biosciences 12 Advancing penetration of our tests with clinicians and payers Expert Consensus & Guidelines1 Reimbursement Strategy Castle Commercial Playbook PENETRATE 1. Not listed: MyPath Melanoma and DecisionDx-UM are included in National Comprehensive Cancer Network (NCCN) Guideline
Slide 13: Financials
©2024 Castle Biosciences 13 Financials
Slide 14: Well positioned for continued value creation
©2024 Castle Biosciences 14 Well positioned for continued value creation Drive robust test volume growth Maintain strong Adjusted Gross Margin Goal to achieve operating cash flow positivity by the end of 2025 Maintain strong balance sheet Follow disciplined capital allocation
Slide 15: Drive robust test report volume and revenue growth
©2024 Castle Biosciences 15 Drive robust test report volume and revenue growth $51.2 $53.3 $59.3 $68.8 $65.1 $10.3 $12.8 $13.6 $18.2 $20.7 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Dermatologic Non-Dermatologic $61.5 $66.1 $87.0 $73.0 $85.8 NET REVENUE BY QUARTER ($M) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q
Slide 16: Maintain strong Adjusted Gross Margin
©2024 Castle Biosciences 16 Maintain strong Adjusted Gross Margin 81.3% 82.3% 80.5% 83.2% 81.9% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ADJUSTED GROSS MARGIN BY QUARTER1,2 $11.3 $12.4 $13.9 $14.5 $15.6 $12.9 $13.0 $13.8 $14.1 $12.3 $44.6 $44.1 $48.5 $51.1 $50.5 $2.3 $2.3 Q3 2023 Q4 2023 Q1 2024 Q2 2
Slide 17: Improving operating cash flow and Adjusted EBITDA
©2024 Castle Biosciences 17 Improving operating cash flow and Adjusted EBITDA $5.0 $18.6 $(6.8) $24.0 $23.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 OPERATING CASH FLOW BY QUARTER ($M) 1. As of September 30, 2024; includes Cash, Cash Equivalents & Marketable Investment Securities 2. Net cash used in
Slide 18: A disciplined approach to capital allocation
©2024 Castle Biosciences 18 A disciplined approach to capital allocation Commercial optimization Focused R&D efforts to build evidentiary support and develop tests As a lesser priority, strategic opportunities, including within our current therapeutic areas
Slide 19: Appendix
©2024 Castle Biosciences 19 Appendix
Slide 20: DecisionDx-Melanoma
©2024 Castle Biosciences 20 DecisionDx-Melanoma DERMATOLOGY Provides comprehensive, personalized, genomic tumor information to guide management for patients with cutaneous melanoma Demonstrated change in management for 1 of 2 patients tested2 ~30% ~183,000 patients with a clinical DecisionDx- Melano
Slide 21: DecisionDx-SCC
©2024 Castle Biosciences 21 DecisionDx-SCC DERMATOLOGY Identifies the risk of metastasis in patients with squamous cell carcinoma (SCC) and one or more risk factors Clinical Validity and Utility Demonstrated validity, utility and impact, backed by 22 peer-reviewed publications, including data showin
Slide 22: MyPath Melanoma
©2024 Castle Biosciences 22 MyPath Melanoma DERMATOLOGY Aids in the diagnosis and management for patients with ambiguous melanocytic lesions Clinical Validity and Utility Demonstrated validity, utility and impact, backed by 17 peer-reviewed publications demonstrating the performance and utility of t
Slide 23: TissueCypher
©2024 Castle Biosciences 23 TissueCypher GASTROENTEROLOGY A leading risk-stratification test designed to predict risk of progression to esophageal cancer in patients with Barrett’s esophagus Clinical Validity and Utility Demonstrated validity, utility and impact, backed by 14 peer-reviewed publicati
Slide 24: IDgenetix
©2024 Castle Biosciences 24 IDgenetix MENTAL HEALTH Advanced pharmacogenomic (PGx) test designed to guide medication selection and management for patients with neuropsychiatric conditions, such as depression and anxiety Advanced PGx • Demonstrated clinical validity, utility and impact, backed by 19
Slide 25: DecisionDx-UM
©2024 Castle Biosciences 25 DecisionDx-UM OPHTHALMOLOGY The standard of care for evaluating metastatic risk in uveal melanoma Standard of Care • Utilized in approximately 80% of newly diagnosed patients • Favorable reimbursement profile – covered by Medicare and more than 100 private insurers • Incl
Slide 26: Inflammatory Skin Disease Pipeline
©2024 Castle Biosciences 26 Inflammatory Skin Disease PIPELINE Pipeline program to develop a genomic test aimed at guiding systemic therapy selection for patients with moderate-to-severe atopic dermatitis (AD), psoriasis (PSO) and related conditions • Identified distinct gene expression profiles of
Slide 27: Reconciliation of Non-GAAP Financial Measures: Adjusted Revenues and Adjusted Gross Margin
©2024 Castle Biosciences 27 Reconciliation of Non-GAAP Financial Measures (Unaudited) The tables below present the reconciliation of Adjusted Revenues and Adjusted Gross Margin, which are non-GAAP financial measures. See disclaimer slide for further information regarding the Company’s use of non-GAA
Slide 28: Reconciliation of Non-GAAP Financial Measures: Adjusted EBITDA
©2024 Castle Biosciences 28 Reconciliation of Non-GAAP Financial Measures (Unaudited) The table below presents the reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure. See disclaimer slide for further information regarding the Company’s use of non-GAAP financial measures. Three
Slide 29: Thank You
©2024 Castle Biosciences 29 Thank You