Castle Biosciences, Inc. · NASDAQ:CSTL
Castle Biosciences — Q1 2024 Earnings Presentation
24 slides from Castle Biosciences's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024
Empowering people, Informing care decisions First Quarter 2024 May 2, 2024 ©2024 Castle Biosciences 1
Slide 2: Disclaimers: Forward-Looking Statements
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 harbor” created by those sectio
Slide 3: Disclaimers: Financial Information; Non-GAAP Financial Measures
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 accounting principles in the Uni
Slide 4: Proven strategy designed to drive value creation for our stakeholders
Proven strategy designed to drive value creation for our stakeholders BUILD robust clinical FOCUS evidence on best/first-in-class tests with high, unmet clinical need and significant market opportunity PENETRATE target markets to further test adoption by clinicians and payers ©2024 Castle Bioscience
Slide 5: Key first quarter 2024 results
Key first quarter 2024 results Published three peer-reviewed studies since the beginning of 2024 demonstrating that DecisionDx-SCC can improve risk stratification when 1 used in conjunction with staging, to help predict responsiveness to adjuvant radiation therapy (ART) and when used in conjunction
Slide 6: Evidence development timeline for DecisionDx-SCC
Evidence development timeline for DecisionDx-SCC 2019 2020 2021 2022 2023 2024 YTD Somani et al. – Using DecisionDx-SCC to guide ART Number of decisions for SCC patients could result in substantial peer-reviewed publications 1 2 4 5 4 Medicare healthcare savings of up to ~$972 million annually. Gopa
Slide 7: Drive robust test report volume and revenue growth
Drive robust test report volume and revenue growth TOTAL REVENUE BY QUARTER ($M) TOTAL TEST VOLUME BY QUARTER $73.0 $66.1 $13.6 20,888 $61.5 20,284 $12.8 $10.3 18,409 $50.1 16,820 $42.0 $7.1 14,916 $6.1 $59.3 $51.2 $53.3 $43.0 $35.9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4
Slide 8: Maintain strong Adjusted Gross Margin
Maintain strong Adjusted Gross Margin ADJUSTED GROSS MARGIN BY QUARTER1,2 OPERATING EXPENSES BY QUARTER ($M)3 $2.2 $2.2 $2.2 $2.3 $2.3 $48.5 $46.8 $44.7 $44.6 $44.1 81.3% 82.3% 80.5% 76.5% 78.0% $13.0 $13.8 $14.4 $13.3 $12.9 $10.2 $11.1 $11.3 $12.4 $13.9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 20
Slide 9: Improving operating cash flow and Adjusted EBITDA
Improving operating cash flow and Adjusted EBITDA Cash position of ~$239M1 supports growth initiatives OPERATING CASH FLOW BY QUARTER ($M) ADJUSTED EBITDA BY QUARTER ($M)3,4 $18.6 $10.5 $9.4 $6.6 $5.0 $(3.8) $(6.8) $(5.3) $(15.1) $(25.4) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 202
Slide 10: 2024 Revenue Guidance
2024 Revenue Guidance Full-year 2024 revenue is expected to be between $255-265 million $55-65M $255-265M $235-240M $220M 2023 Revenue Initial 2024 Updated 2024 Revenue Revenue Guidance* Guidance** *Initial full-year 2024 total revenue guidance of $235-240 million provided on February 28, 2024 ©2024
Slide 11: Expected 2024 Catalysts
Expected 2024 Catalysts Full year impact of studies showing patients who receive 1 DecisionDx-Melanoma as part of their clinical management have improved survival compared to those who are not tested Commercial expansion in alignment with Castle principles and 2 servant leadership culture DecisionDx
Slide 12: Appendix
Appendix ©2024 Castle Biosciences 12 12
Slide 13: DecisionDx-Melanoma
DERMATOLOGY DecisionDx-Melanoma Provides comprehensive, personalized, genomic tumor information to guide management for patients with cutaneous melanoma Clinical Validity, Utility and Expert Consensus Demonstrated Patient Outcomes 2023 National Society for Demonstrated clinical validity, utility and
Slide 14: DecisionDx-SCC
DERMATOLOGY DecisionDx-SCC Identifies the risk of metastasis in patients with squamous cell carcinoma (SCC) and one or more risk factors Clinical Validity and Utility Real-World Use Framework Demonstrated validity, Study in Clinical, Cosmetic utility and impact, backed and Investigational ~200,000 ~
Slide 15: MyPath Melanoma
DERMATOLOGY MyPath Melanoma Aids in the diagnosis and management for patients with ambiguous melanocytic lesions Clinical Validity and Utility Guideline Support Demonstrated validity, • National Comprehensive utility and impact, backed Cancer Network guidelines by 17 peer-reviewed publications demon
Slide 16: TissueCypher
GASTROENTEROLOGY TissueCypher A leading risk-stratification test designed to predict risk of progression to esophageal cancer in patients with Barrett’s esophagus Clinical Validity and Utility AGA Clinical Practice Update Demonstrated validity, Recognized by the American utility and impact, backed G
Slide 17: IDgenetix
MENTAL HEALTH IDgenetix Advanced pharmacogenomic (PGx) test designed to guide medication selection and management for patients with neuropsychiatric conditions, such as depression and anxiety Advanced PGx Easy to Use • Demonstrated clinical • 10 mental health and validity, utility and impact, backed
Slide 18: DecisionDx-UM
OPHTHALMOLOGY DecisionDx-UM The standard of care for evaluating metastatic risk in uveal melanoma Clinical Validity and Utility Standard of Care Demonstrated validity, • Utilized in approximately utility and impact, backed 80% of newly diagnosed by 25 peer-reviewed patients publications, which • Fav
Slide 19: Inflammatory Skin Disease Pipeline Program
Inflammatory Skin PIPELINE Disease Pipeline Program Inflammatory Skin Disease 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 • Test r
Slide 20: Reconciliation of Non-GAAP Financial Measures (Unaudited)
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
Slide 21: Reconciliation of Non-GAAP Financial Measures (Unaudited)
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 months ended Twelve months e
Slide 22: Reconciliation of Non-GAAP Financial Measures (Unaudited)
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 disclaimer slide for further information regarding the Company’s use of non-GAAP financial measures. Three
Slide 23: Reconciliation of Non-GAAP Financial Measures (Unaudited)
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 months ended Mar. 31, Dec. 3
Slide 24: Thank You
Thank You ©2024 Castle Biosciences 24