Castle Biosciences, Inc. · NASDAQ:CSTL
Castle Biosciences — Q4 2023 Earnings Presentation
24 slides from Castle Biosciences's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter 2023
Empowering people, Informing care decisions Fourth Quarter 2023 February 28, 2024 ©2023 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: 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 ©2023 Castle Bioscience
Slide 5: Key 2023 results
Key 2023 results Publication of study data from our collaboration with the National Cancer Institute’s SEER Program Registries showing that testing with DecisionDx- 1 Melanoma was associated with lower melanoma-specific and overall mortality relative to untested patients (Bailey et al. 2023) Publica
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) $66.1 TOTAL TEST VOLUME BY QUARTER $61.5 $12.8 20,284 $10.3 18,409 $50.1 16,820 $7.1 14,916 $42.0 $38.3 $6.1 12,644 $3.7 $51.2 $53.3 $43.0 $34.6 $35.9 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 2
Slide 8: Maintain strong Adjusted Gross Margin
Maintain strong Adjusted Gross Margin ADJUSTED GROSS MARGIN BY QUARTER1,2 OPERATING EXPENSES BY QUARTER ($M)3 $2.2 $2.2 $2.3 $2.3 $(0.3) $0.3 $2.2 $46.8 $44.7 $44.6 $44.1 $38.4 81.3% 82.3% 74.6% 76.5% 78.0% $14.4 $13.3 $12.9 $13.0 $11.3 $9.5 $10.2 $11.1 $11.3 $12.4 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4
Slide 9: Improving operating cash flow and Adjusted EBITDA
Improving operating cash flow and Adjusted EBITDA Cash position of ~$243M1 supports growth initiatives OPERATING CASH FLOW BY QUARTER ($M) ADJUSTED EBITDA BY QUARTER ($M)3,4 $18.6 $9.4 $6.6 $5.0 $(3.8) $(6.0) $(5.3) $(10.4) $(15.1) $(25.4) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2
Slide 10: 2023 Revenue Above Previously-Reported Guidance
2023 Revenue Above Previously- Reported Guidance $36.4M $183.4M $170- At least $219.8M 180M $210M 2023 Initial 2023 Revised 2023 Dermatologic 2023 Non-Dermatologic 2023 Revenue Revenue Revenue Revenue Revenue Guidance* Guidance* *Provided full-year 2023 revenue guidance of at least $210 million on J
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 ©2023 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; test launched in May 2013 Clinical Validity, Utility and Reimbursement Demonstrated Patient Outcomes Reimbursement coverage through Medicare Demon
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; test launched in August 2020 Clinical Validity and Utility Real-World Use Framework Demonstrated validity, Study in Clinical, Cosmetic utility and impact, backed
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 publications, which • patients 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 • New data showing the • Test resul
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 Dec. 31, Sep. 3
Slide 24: Thank You
Thank You ©2023 Castle Biosciences 24