Castle Biosciences, Inc. · NASDAQ:CSTL
Castle Biosciences — Q3 2024 Earnings Presentation
23 slides from Castle Biosciences's earnings presentation, Nov 4, 2024
Slide 1: Empowering people, informing care decisions - Third Quarter 2024
Empowering people, informing care decisions Third Quarter 2024 November 4, 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: 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: Registered Trademarks
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. ©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: Key third quarter 2024 results
Key third quarter 2024 results Raised 2024 total revenue guidance to $320-330 million, up from 1 $275-300 million previously reported Delivered strong Q3 2024 results, highlighted by year-over- 2 year growth in our total test report volume (+41%) and revenue (+39%) Gross Margin for Q3 2024 was 79%,
Slide 7: DecisionDx-Melanoma CONNECTION study predicts low risk of SLN positivity
Data from the DecisionDx-Melanoma prospective, multicenter CONNECTION study was successful at predicting which BUILD patients with T1 tumors have a low risk of SLN positivity DecisionDx-Melanoma correctly identified a population of patients with very low risk of SLN positivity who could have avoided
Slide 8: Low-risk DecisionDx-Melanoma patients without SLNB have high recurrence-free survival
Patients with low-risk DecisionDx-Melanoma test results who did not undergo SLNB have high recurrence-free survival BUILD (three-year recurrence free survival rate of 99.5%) RFS in patients with <5% risk (DecisionDx- Melanoma) who did not undergo SLNB Survival Probability <5% risk of SLN positivity
Slide 9: DecisionDx-SCC Guiding SCC Treatment Pathways
DecisionDx-SCC Has Consistently Demonstrated High BUILD Value Patients in Guiding SCC Treatment Pathways 2019 2020 2021 2022 2023 2024 YTD 1 2 4 5 4 6 to date Number of peer-reviewed Study Demonstrating Risk Stratification Studies Demonstrating Predictive Value of ART publications Value in High-Risk
Slide 10: Drive robust test report volume and revenue growth
Drive robust test report volume and revenue growth NET REVENUE BY QUARTER ($M) TOTAL TEST VOLUME BY QUARTER 26,010 25,102 $87.0 $85.8 $18.2 20,284 20,888 $73.0 $20.7 18,409 $66.1 $61.5 $13.6 $12.8 $10.3 $68.8 $65.1 $59.3 $51.2 $53.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2
Slide 11: Maintain strong Adjusted Gross Margin
Maintain strong Adjusted Gross Margin ADJUSTED GROSS MARGIN BY QUARTER1,2 OPERATING EXPENSES BY QUARTER ($M)3 $2.2 $2.3 $2.2 $2.3 $2.3 $51.1 $50.5 $48.5 $44.6 $44.1 81.3% 82.3% 80.5% 83.2% 81.9% $13.8 $14.1 $12.3 $12.9 $13.0 $12.4 $13.9 $14.5 $15.6 $11.3 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 20
Slide 12: Improving operating cash flow and Adjusted EBITDA
Improving operating cash flow and Adjusted EBITDA Cash position of ~$280M1 supports growth initiatives OPERATING CASH FLOW BY QUARTER ($M) ADJUSTED EBITDA BY QUARTER ($M)3,4 $24.0 $21.5 $21.6 $23.3 $18.6 $10.5 $5.0 $9.4 $6.6 $(6.8) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2 2
Slide 13: Appendix
Appendix ©2024 Castle Biosciences 13 13
Slide 14: DecisionDx-Melanoma
DERMATOLOGY DecisionDx-Melanoma Provides comprehensive, personalized, genomic tumor information to guide management for patients with cutaneous melanoma Clinical Validity, Utility and SLNB Guidance and Demonstrated Patient Patient Outcomes 4,5 Outcomes DecisionDx-Melanoma Demonstrated clinical succe
Slide 15: 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 16: 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 17: 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 Recognition from AGA Demonstrated validity, 2024 Clinical Practice Guideline utility and impact, backed ack
Slide 18: 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 19: 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 • Fa
Slide 20: 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 21: Reconciliation of Non-GAAP Financial Measures (Unaudited)
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-GAAP financial measures. Three
Slide 22: 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 Sep. 30, Jun. 3
Slide 23: Thank You
Thank You ©2024 Castle Biosciences 23