Castle Biosciences, Inc. · NASDAQ:CSTL
Castle Biosciences — Q4 2022 Earnings Presentation
20 slides from Castle Biosciences's earnings presentation, Feb 28, 2023
Slide 1: Transforming Disease Management
Transforming Disease Management Fourth Quarter 2022 February 28, 2023
Slide 2: Forward-Looking Statements
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 sections. These fo
Slide 3: Strong Performance in 2022
Strong Performance in 2022 Expecting approximately $170 – 180 million in 2023 revenue 2022 2021 Total test reports 44,419 28,145 Total Dermatology test reports 37,331 26,500 Revenues $137.0M $94.1M Adj. Revenues1 $139.0M $90.8M Gross Margin 70.6% 81.1% Adj. Gross Margin1 77.0% 82.6% Net Loss $(67.1)
Slide 4: Consistent Execution of Growth Initiatives Supports Long-Term Growth
Consistent Execution of Growth Initiatives Supports Long-Term Growth 2017-2022 Total Test Report Volume 2017-2022 Revenue 44,419 $137.0 58% 46% $94.1 28,145 $62.6 17,055 18,185 $51.9 13,445 10,614 $22.8 $13.8 1 2 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 1Due to COVID-19, cutaneous
Slide 5: Key 2022 Accomplishments
Key 2022 Accomplishments Delivered strong year-over-year Presented three-year financial targets Developed expanded evidence growth in revenue (met top end of and strategic guideposts at 2022 supporting portfolio of innovative guided range) and test report volume Investor Day tests through the (total
Slide 6: Answering Clinical Questions to Guide Care Along the Patient Journey
Answering Clinical Questions to Guide Care Along the Patient Journey Our focus is on diagnostic support, risk stratification and therapy response areas of the patient care continuum Therapy Response MRD/Recurrence PATIENT CARE JOURNEY Screening Diagnostic Support Risk Stratification Monitoring Infla
Slide 7: Estimated ~$8B U.S. Total Addressable Market for Commercially Available Tests
Estimated ~$8B U.S. Total Addressable Market1 for Commercially Available Tests Dermatology Gastroenterology Mental Health Cutaneous melanoma/ Cutaneous squamous cell Suspicious pigmented Barrett’s esophagus/risk of progression to risk of metastasis, SLNB Mental health therapy response carcinoma/risk
Slide 8: Significant Scientific Evidence Through Robust Clinical Research Program Across Our Testing Portfolio
8 Significant Scientific Evidence Through Robust Clinical Research Program Across Our Testing Portfolio 13 231 ~11,200+ ~12,000+ Ongoing clinical Committed/contributing Patients1 enrolled in Patients enrolled in research studies clinical research sites at studies at studies over lifetime year-end 20
Slide 9: Well Positioned for Continued Growth with Expected 2023 Catalysts
Well Positioned for Continued Growth with Expected 2023 Catalysts Expected publication of Expect new GI and MyPath collaborative NCI study showing commercial team expansion to higher melanoma specific survival reach optimal productivity in Q2 for patients tested 2023 with DecisionDx-Melanoma Expect
Slide 10: Strong Growth in Our Foundational Dermatology Business
Strong Growth in Our Foundational Dermatology Business Total Dermatology Test Reports 37,331 26,500 2021 2022 Strong provider growth and continued adoption with ~2,312 new ordering clinicians and ~7,670 total ordering clinicians for our dermatologic tests for the year ended Dec. 31, 20221 1New order
Slide 11: DecisionDx-Melanoma Disease Specific Survival Outcomes Are Favorable Relative to Other Tests
DecisionDx-Melanoma Disease Specific Survival Outcomes Are Favorable Relative to Other Tests Tumor size P-value 10-yr MSS Sentinel lymph node biopsy (SLNB) Thin (<1.2mm) Not reported Not impacted • SLNB is a risk-stratification surgical procedure “test” in melanoma Intermediate (1.2-3.5mm) not signi
Slide 12: TissueCypher Is a Risk Stratification Tool for Patients with Barrett's Esophagus
TissueCypher Is a Risk Stratification Tool for Patients with Barrett's Esophagus Individualize 5-year risk of progression to HGD or EAC • Indicated for NDBE, IND, and LGD • High Risk score enables increased surveillance or early intervention to prevent cancer • Low Risk score minimizes over treatmen
Slide 13: IDgenetix: Precision Medicine Designed to Streamline Medication Selection for Mental Health
IDgenetix: Precision Medicine Designed to Streamline Medication Selection for Mental Health Next Generation PGx Unrivaled Efficacy Easy to Use • Eliminate trial and error • 2x improved chance of • 10 mental health and pain prescribing medication response vs. conditions in one report • 3 in 1 test: c
Slide 14: Thank you
CASTLE BIOSCIENCES Thank you
Slide 15: Use Of Non-GAAP Financial Measures (Unaudited)
Use Of Non-GAAP Financial Measures (Unaudited) In this presentation, we use the metrics of Adjusted Revenues, Adjusted Gross Margin, Adjusted Operating Cash Flow and Adjusted EBITDA, which are non- GAAP financial measures and are not calculated in accordance with generally accepted accounting princi
Slide 16: 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 previous slide for further information regarding the Company’s use of non-GAAP financial measures. 16
Slide 17: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) The table below presents the reconciliation of adjusted operating cash flow, which is a non-GAAP financial measure. See slide 15 for further information regarding the Company’s use of non-GAAP financial measures. 17
Slide 18: 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 slide 15 for further information regarding the Company’s use of non-GAAP financial measures. 18
Slide 19: Appendix
Appendix
Slide 20: Leadership Team Overview
Leadership Team Overview Derek Maetzold © SCHERING Dan Bradbury Eauillium Founder, Director, President and CEO SSXSINE a am S, SANDOZ —, Frank Stokes LEERINK” nd fz] Derek Maetzold CASTLE Chief Financial Officer Suan Mara Aspinall Toby Juvenal Bi eccove seneucs Gy Ese Pharmaceuticals Chief Commercia