Castle Biosciences, Inc. · NASDAQ:CSTL
Castle Biosciences — Q1 2024 Earnings Presentation
29 slides from Castle Biosciences's earnings presentation, May 2024
Slide 1: Empowering people, informing care decisions
Empowering people, informing care decisions May 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: Improving health through innovative tests that guide patient care
OUR MISSION Improving health through innovative tests that guide patient care OUR VISION Transforming disease management by keeping people first: patients, clinicians, employees, and investors ©2024 Castle Biosciences 4
Slide 5: 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 6: Estimated ~$8B U.S. total addressable market for commercially available tests
Estimated ~$8B U.S. total addressable market1 for FOCUS commercially available tests ~$540M ~$820M ~$600M ~$1B ~$5B TAM TAM TAM TAM TAM GASTROENTEROLOGY Cutaneous Cutaneous Suspicious Barrett’s esophagus/ Mental health therapy MENTAL HEALTH DERMATOLOGY melanoma/ squamous cell pigmented risk of progr
Slide 7: Building evidence showing the value of our tests
Building evidence showing the value of our tests BUILD Studies1 show clinical Studies2 demonstrating use of our test is that DecisionDx-SCC Ablation has been Randomized associated with can improve risk shown to stop controlled improved melanoma stratification when used progression to EAC study shows
Slide 8: DecisionDx-Melanoma provides precise, personalized risk prediction for two critical clinical questions
DecisionDx-Melanoma provides precise, personalized risk prediction for two critical clinical questions BUILD Collaborative study with the National Cancer Clinical use of DecisionDx-Melanoma is associated with Institute’s SEER Program Registries is the largest real- improved patient survival world st
Slide 9: DecisionDx-Melanoma significantly improves risk stratification in stage I melanoma compared to AJCC staging
DecisionDx-Melanoma significantly improves risk stratification in stage I melanoma BUILD compared to AJCC staging DecisionDx-Melanoma compared to American Joint Committee on Cancer Staging Manual 8th Edition (AJCC8) COHORT 1 – Combined staging for stage I cutaneous melanoma Combined cohort of stage
Slide 10: Advancing penetration of our tests with clinicians and payers
Advancing penetration of our tests with clinicians and payers PENETRATE Expert Consensus & Reimbursement Castle Commercial Guidelines1 Strategy Playbook Total Test Report Volume • DecisionDx-Melanoma: 2023 • Increased total number of ADLTs National Society for Cutaneous to 5 by obtaining approval fr
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: Financials
Financials ©2024 Castle Biosciences 12
Slide 13: Well positioned for continued value creation
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 ©2024 Castle Biosciences 13
Slide 14: 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 $35.9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4
Slide 15: Maintain strong Adjusted Gross Margin
Maintain strong Adjusted Gross Margin ADJUSTED GROSS MARGIN BY QUARTER1,2 OPERATING EXPENSES BY QUARTER ($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 16: 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 17: A disciplined approach to capital allocation
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 in our current therapeutic areas ©2024 Castle Biosciences 17
Slide 18: 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 19: Appendix
Appendix ©2024 Castle Biosciences 19 19
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: Thank You
Thank You ©2024 Castle Biosciences 29