Q3 2023 revenue increased 66% over Q3 2022 to
$61 million
Q3 2023 total test reports increased 52% over
Q3 2022
Raising full year 2023 revenue guidance to at
least $200 million from at least $180 million
Conference call and webcast today at 4:30 p.m.
ET
Castle Biosciences, Inc. (Nasdaq: CSTL), a company improving
health through innovative tests that guide patient care, today
announced its financial results for the third quarter and nine
months ended September 30, 2023.
“Our third quarter results were exceptional, demonstrating the
strength of our business fundamentals and the innovative test
portfolio we’ve built to provide patients and clinicians with
actionable information to guide patient care,” said Derek Maetzold,
president and chief executive officer of Castle Biosciences. “We
delivered another quarter of significant test volume growth and
revenue growth, which helped drive positive earnings and positive
operating cash flow. Given our consistent performance year-to-date
and confidence in our business, we are raising our 2023 revenue
guidance to at least $200 million, up from at least $180
million.
“We continue to invest in our strategic growth initiatives
across our entire test portfolio, while maintaining our firm focus
on financial discipline. We believe our investments will continue
to support our long-term value creation plans and the improvement
of patient care. Our success is not possible without the continued
dedication and efforts of our Castle team, and I would like to
express my sincere appreciation for their contributions.”
Third Quarter Ended September 30, 2023, Financial and
Operational Highlights
- Revenues were $61.5 million, a 66% increase compared to $37.0
million during the same period in 2022. Included in revenue for the
period were revenue adjustments related to tests delivered in prior
periods. These prior period revenue adjustments for the quarter
ended September 30, 2023, were $0.9 million of net positive revenue
adjustments, compared to $(0.3) million of net negative revenue
adjustments for the same period in 2022.
- Adjusted revenues, which exclude the effects of revenue
adjustments related to tests delivered in prior periods, were $60.6
million, a 63% increase compared to $37.3 million for the same
period in 2022.
- Delivered 18,409 total test reports in the third quarter of
2023, an increase of 52% compared to 12,114 in the same period of
2022:
- DecisionDx®-Melanoma test reports delivered in the quarter were
8,559, compared to 7,354 in the third quarter of 2022, an increase
of 16%.
- DecisionDx®-SCC test reports delivered in the quarter were
2,820, compared to 1,636 in the third quarter of 2022, an increase
of 72%.
- MyPath® Melanoma test reports delivered in the quarter were
1,011, compared to 834 MyPath Melanoma and DiffDx®-Melanoma
aggregate test reports in the third quarter of 2022, an increase of
21%.
- DecisionDx®-UM test reports delivered in the quarter were 399,
compared to 392 in the third quarter of 2022, an increase of
2%.
- TissueCypher® Barrett’s Esophagus test reports delivered in the
quarter were 2,829, compared to 690 in the third quarter of 2022,
an increase of 310%.
- IDgenetix® test reports delivered in the quarter were 2,791,
compared to 1,208 in the third quarter of 2022, an increase of
131%.
- Gross margin for the quarter ended September 30, 2023, was 78%,
and adjusted gross margin was 81%.
- Net cash provided by operations was $5.0 million, compared to
net cash used in operations of $5.2 million for the same period in
2022.
- Net loss for the third quarter, which includes non-cash
stock-based compensation expense of $13.0 million, was $(6.9)
million, compared to a net loss of $(20.2) million for the same
period in 2022.
- Adjusted EBITDA for the third quarter was $6.6 million,
compared to $(9.6) million for the same period in 2022.
Nine Months Ended September 30, 2023, Financial and
Operational Highlights
- Revenues were $153.7 million, a 56% increase compared to $98.7
million during the same period in 2022. Included in revenue for the
period were revenue adjustments related to tests delivered in prior
periods. These prior period revenue adjustments for the nine months
ended September 30, 2023, were $(3.1) million of net negative
revenue adjustments, compared to $(1.9) million of net negative
revenue adjustments for the same period in 2022.
- Adjusted revenues, which exclude the effects of revenue
adjustments related to tests delivered in prior periods, were
$156.8 million, a 56% increase compared to $100.6 million for the
same period in 2022.
- Delivered 50,145 total test reports in the nine months ended
September 30, 2023, an increase of 58% compared to 31,775 in the
same period of 2022:
- DecisionDx-Melanoma test reports delivered in the nine months
ended September 30, 2023, were 24,739, compared to 20,502 for the
same period in 2022, an increase of 21%.
- DecisionDx-SCC test reports delivered in the nine months ended
September 30, 2023, were 7,912, compared to 4,122 for the same
period in 2022, an increase of 92%.
- MyPath Melanoma test reports delivered in the nine months ended
September 30, 2023, were 2,944, compared to 2,739 MyPath Melanoma
and DiffDx-Melanoma aggregate test reports for the same period in
2022, an increase of 7%.
- DecisionDx-UM test reports delivered in the nine months ended
September 30, 2023, were 1,269, compared to 1,279 for the same
period in 2022, a decrease of 1%.
- TissueCypher Barrett’s Esophagus test reports delivered in the
nine months ended September 30, 2023, were 5,659, compared to 1,098
for the same period in 2022, following our initial offering of the
test beginning in December 2021.
- IDgenetix test reports delivered in the nine months ended
September 30, 2023, were 7,622, compared to 2,035 for the same
period in 2022, following our initial offering of the test
beginning in April 2022.
- Gross margin for the nine months ended September 30, 2023, was
74%, and adjusted gross margin was 79%.
- Net cash used in operations was $24.2 million, compared to
$35.7 million for the same period in 2022.
- Net loss for the nine months ended September 30, 2023, which
includes non-cash stock-based compensation expense of $39.4
million, was $(54.9) million, compared to $(46.5) million for the
same period in 2022.
- Adjusted EBITDA for the nine months ended September 30, 2023,
was $(13.8) million, compared to $(32.2) million for the same
period in 2022.
Cash, Cash Equivalents and Marketable Investment
Securities
As of September 30, 2023, the Company’s cash, cash equivalents
and marketable investment securities totaled $229.8 million.
2023 Outlook
Castle Biosciences is increasing its guidance for anticipated
total revenue in 2023. The Company now anticipates generating at
least $200 million in total revenue in 2023 compared to the
previously provided guidance of at least $180 million.
Third Quarter and Recent Accomplishments and
Highlights
Dermatology
- DecisionDx-Melanoma: In October 2023, the Company announced a
new study demonstrating DecisionDx-Melanoma outperforms a nomogram
developed at the Memorial Sloan Kettering Cancer Center in
predicting the risk of sentinel lymph node positivity in patients
with cutaneous melanoma. The study can be found here.
- DecisionDx-SCC: In October 2023, the Company shared new data
demonstrating the ability of its DecisionDx-SCC test to identify
localized high-risk cutaneous squamous cell carcinoma patients at a
higher risk of metastasis who may benefit from adjuvant radiation
therapy. See the Company’s news release from October 3, 2023, for
more information.
Gastroenterology
- In October, the Company announced new data demonstrating the
significant clinical utility of its TissueCypher Barrett’s
Esophagus test in guiding risk-aligned upstaging of care for
patients with non-dysplastic Barrett’s esophagus (BE) at a higher
risk of progression to high-grade dysplasia (HGD) or esophageal
adenocarcinoma (EAC) than indicated by their clinicopathologic risk
factors. See the Company’s news release from October 2, 2023, for
more information.
- In September, the Company announced the publication of data
demonstrating that the TissueCypher Barrett’s Esophagus test
outperformed standard of care pathology review in predicting
malignant progression to HGD and EAC in BE patients with an initial
diagnosis of low-grade dysplasia (LGD). The study can be found
here.
- In September, the Company announced new data demonstrating its
TissueCypher Barrett’s Esophagus test can identify patients at a
higher or lower risk of developing esophageal cancer than indicated
by pathologic diagnoses and clinical risk factors to guide
escalated or de-escalated patient management. See the Company’s
news release from September 8, 2023, for more information.
- In August, the Company announced a new study published in The
American Journal of Gastroenterology showing how use of
TissueCypher Barrett’s Esophagus test results can significantly
improve management decisions for BE patients with LGD to improve
health outcomes. The study can be found here.
Mental Health
- In September, the Company announced data from a study showing
the addition of drug-drug interactions and lifestyle factors to
drug-gene interactions provided by its IDgenetix test significantly
impacted the number of drug recommendations and contributed to
improved remission rates for patients with moderate to severe
depression. See the Company’s news release from September 9, 2023,
for more information.
Corporate
- In September, the Company announced that it had earned a Top
Workplaces National Industry Award, ranking third among 84 Top
Workplaces in the healthcare industry. Castle has earned several
additional Top Workplace awards this year, including Top Workplaces
USA and Arizona Top Workplace awards, both for the second
consecutive year, as well as the Culture Excellence Awards for
Innovation, Work-Life Flexibility, Compensation & Benefits,
Leadership and Purpose & Values. See the Company’s news release
from September 19, 2023, for more information.
- In September, the Company announced that it had received its
Clinical Laboratory Permit from the New York State Department of
Health for its laboratory in Pittsburgh. Castle operates clinical
laboratories in Pittsburgh and Phoenix. With the recent successful
inspection in Pittsburgh, both laboratories are now permitted to
provide test services to patients and physicians in the state of
New York. Castle’s Phoenix laboratory received its permit in early
2018. See the Company’s news release from September 12, 2023, for
more information.
Conference Call and Webcast Details
Castle Biosciences will hold a conference call on Thursday, Nov.
2, 2023, at 4:30 p.m. Eastern time to discuss its third quarter
2023 results and provide a corporate update.
A live webcast of the conference call can be accessed here:
https://events.q4inc.com/attendee/479909909 or via the webcast link
on the Investor Relations page of the Company’s website,
https://ir.castlebiosciences.com/overview/default.aspx. Please
access the webcast at least 10 minutes before the conference call
start time. An archive of the webcast will be available on the
Company’s website until Nov. 23, 2023.
To access the live conference call via phone, please dial 833
470 1428 from the United States, or +1 404 975 4839
internationally, at least 10 minutes prior to the start of the
call, using the conference ID 925738.
There will be a brief Question & Answer session following
management commentary.
Use of Non-GAAP Financial Measures (UNAUDITED)
In this release, 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 United States
(GAAP). Adjusted Revenues and Adjusted Gross Margin reflect
adjustments to GAAP net revenues to exclude net positive and/or net
negative revenue adjustments recorded in the current period
associated with changes in estimated variable consideration related
to test reports delivered in previous periods. Adjusted Gross
Margin further excludes acquisition-related intangible asset
amortization. Adjusted EBITDA excludes from net loss interest
income, interest expense, income tax expense (benefit),
depreciation and amortization expense, stock-based compensation
expense, change in fair value of contingent consideration and
acquisition related transaction costs.
We use Adjusted Revenues, Adjusted Gross Margin and Adjusted
EBITDA internally because we believe these metrics provide useful
supplemental information in assessing our revenue and operating
performance reported in accordance with GAAP, respectively. We
believe that Adjusted Revenues, when used in conjunction with our
test report volume information, facilitates investors’ analysis of
our current-period revenue performance and average selling price
performance by excluding the effects of revenue adjustments related
to test reports delivered in prior periods, since these adjustments
may not be indicative of the current or future performance of our
business. We believe that providing Adjusted Revenues may also help
facilitate comparisons to our historical periods. Adjusted Gross
Margin is calculated using Adjusted Revenues and therefore excludes
the impact of revenue adjustments related to test reports delivered
in prior periods, which we believe is useful to investors as
described above. We further exclude acquisition-related intangible
asset amortization in the calculation of Adjusted Gross Margin. We
believe that excluding acquisition-related intangible asset
amortization may facilitate gross margin comparisons to historical
periods and may be useful in assessing current-period performance
without regard to the historical accounting valuations of
intangible assets, which are applicable only to tests we acquired
rather than internally developed. We believe Adjusted EBITDA may
enhance an evaluation of our operating performance because it
excludes the impact of prior decisions made about capital
investment, financing, investing and certain expenses we believe
are not indicative of our ongoing performance. However, these
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies, even when the same or
similarly titled terms are used to identify such measures, limiting
their usefulness for comparative purposes.
These non-GAAP financial measures are not meant to be considered
in isolation or used as substitutes for net revenues, gross margin,
or net loss reported in accordance with GAAP; should be considered
in conjunction with our financial information presented in
accordance with GAAP; have no standardized meaning prescribed by
GAAP; are unaudited; and are not prepared under any comprehensive
set of accounting rules or principles. In addition, from time to
time in the future, there may be other items that we may exclude
for purposes of these non-GAAP financial measures, and we may in
the future cease to exclude items that we have historically
excluded for purposes of these non-GAAP financial measures.
Likewise, we may determine to modify the nature of adjustments to
arrive at these non-GAAP financial measures. Because of the
non-standardized definitions of non-GAAP financial measures, the
non-GAAP financial measure as used by us in this press release and
the accompanying reconciliation tables have limits in their
usefulness to investors and may be calculated differently from, and
therefore may not be directly comparable to, similarly titled
measures used by other companies. Accordingly, investors should not
place undue reliance on non-GAAP financial measures.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are presented in the
tables at the end of this release.
About Castle Biosciences
Castle Biosciences (Nasdaq: CSTL) is a leading diagnostics
company improving health through innovative tests that guide
patient care. The Company aims to transform disease management by
keeping people first: patients, clinicians, employees and
investors.
Castle’s current portfolio consists of tests for skin cancers,
uveal melanoma, Barrett’s esophagus and mental health conditions.
Additionally, the Company has active research and development
programs for tests in other diseases with high clinical need,
including its test in development to help guide systemic therapy
selection for patients with moderate-to-severe atopic dermatitis,
psoriasis and related conditions. To learn more, please visit
www.CastleBiosciences.com and connect with us on LinkedIn,
Facebook, X and Instagram.
DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, MyPath
Melanoma, DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME,
DecisionDx-UMSeq, TissueCypher and IDgenetix are trademarks of
Castle Biosciences, Inc.
Forward-Looking Statements
This press release 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 forward-looking statements include, but are not
limited to, statements concerning our expectations regarding: (i)
our full year 2023 revenue guidance of at least $200 million; (ii)
our continued investment in our strategic growth across our entire
test portfolio and the ability of this investment to continue to
support our long-term value creation plans and the improvement of
patient care; (iii) the potential clinical value and utility of our
tests, including with respect to findings in the studies
highlighted in this press release; (iv) our belief that the
DecisionDx-SCC test can identify localized high-risk cutaneous
squamous cell carcinoma patients at a higher risk of metastasis who
may benefit from adjuvant radiation therapy; (v) our belief that
the TissueCypher Barrett’s Esophagus test can identify patients at
a higher or lower risk of developing esophageal cancer and that
such test results can significantly improve management decisions
for BE patients with LGD to improve health outcomes; and (vi) our
belief that the IDgenetix test significantly impacted the number of
drug recommendations and contributed to improved remission rates
for patients with moderate to severe depression. The words
“anticipate,” “can,” “could,” “expect,” “goal,” “may,” “plan” and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. We may not actually achieve the plans,
intentions, or expectations disclosed in our forward-looking
statements and you should not place undue reliance on our
forward-looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
the forward-looking statements that we make. These forward-looking
statements involve risks and uncertainties that could cause our
actual results to differ materially from those in the
forward-looking statements, including, without limitation: the
accuracy of our assumptions and expectations underlying our fiscal
2023 revenue guidance (including, without limitation, our
assumptions or expectations regarding continued reimbursement for
our DecisionDx-SCC test at the current rate and reimbursement for
our other products and subsequent coverage decisions, our estimated
total addressable markets for our products and product candidates
and the related expenses, capital requirements and potential needs
for additional financing, the anticipated cost, timing and success
of our product candidates, and our plans to research, develop and
commercialize new tests and our ability to successfully integrate
new businesses, assets, products or technologies acquired through
acquisitions), the effects of macroeconomic events and conditions,
including inflation and monetary supply shifts, labor shortages,
liquidity concerns at, and failures of, banks and other financial
institutions or other disruptions in the banking system or
financing markets and recession risks, supply chain disruptions,
outbreaks of contagious diseases (such as the COVID-19 pandemic)
and geopolitical events (such as the ongoing Israel-Hamas War and
Ukraine-Russia conflict), among others, on our business and our
efforts to address its impact on our business; subsequent study or
trial results and findings may contradict earlier study or trial
results and findings or may not support the results discussed in
this press release, including with respect to the tests discussed
in this press release; our planned installation of additional
equipment and supporting technology infrastructures and
implementation of certain process efficiencies may not enable us to
increase the future scalability of our TissueCypher Test; actual
application of our tests may not provide the aforementioned
benefits to patients; our newer gastroenterology and mental health
franchises may not contribute to the achievement of our long-term
financial targets as anticipated; and the risks set forth under the
heading “Risk Factors” in our Annual Report on Form 10-K for the
year ended December 31, 2022, our Quarterly Report on Form 10-Q for
the three months ended September 30, 2023, each filed or to be
filed with the SEC, and in our other filings with the SEC. The
forward-looking statements are applicable only as of the date on
which they are made, and we do not assume any obligation to update
any forward-looking statements, except as may be required by
law.
###
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per
share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
NET REVENUES
$
61,493
$
37,011
$
153,668
$
98,701
OPERATING EXPENSES AND OTHER OPERATING
INCOME
Cost of sales (exclusive of amortization
of acquired intangible assets)
11,319
8,859
32,559
22,489
Research and development
12,923
10,907
40,624
33,594
Selling, general and administrative
44,619
36,626
136,062
104,577
Amortization of acquired intangible
assets
2,272
2,306
6,742
6,051
Change in fair value of contingent
consideration
—
(151
)
—
(17,987
)
Total operating expenses, net
71,133
58,547
215,987
148,724
Operating loss
(9,640
)
(21,536
)
(62,319
)
(50,023
)
Interest income
2,769
1,293
7,504
1,693
Interest expense
(2
)
(6
)
(9
)
(13
)
Loss before income taxes
(6,873
)
(20,249
)
(54,824
)
(48,343
)
Income tax expense (benefit)
32
—
62
(1,823
)
Net loss
$
(6,905
)
$
(20,249
)
$
(54,886
)
$
(46,520
)
Loss per share, basic and diluted
$
(0.26
)
$
(0.77
)
$
(2.05
)
$
(1.79
)
Weighted-average shares outstanding, basic
and diluted
26,834
26,316
26,725
25,938
Stock-Based Compensation Expense
Stock-based compensation expense is included in the condensed
consolidated statements of operations as follows (in
thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Cost of sales (exclusive of amortization
of acquired intangible assets)
$
1,245
$
975
$
3,719
$
2,725
Research and development
2,682
1,948
7,755
5,607
Selling, general and administrative
9,116
6,273
27,943
18,066
Total stock-based compensation expense
$
13,043
$
9,196
$
39,417
$
26,398
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net loss
$
(6,905
)
$
(20,249
)
$
(54,886
)
$
(46,520
)
Other comprehensive income
(loss):
Net unrealized gain (loss) on marketable
investment securities
73
(189
)
310
(189
)
Comprehensive loss
$
(6,832
)
$
(20,438
)
$
(54,576
)
$
(46,709
)
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
September 30, 2023
December 31, 2022
ASSETS
(unaudited)
Current Assets
Cash and cash equivalents
$
91,223
$
122,948
Marketable investment securities
138,530
135,677
Accounts receivable, net
37,003
23,476
Inventory
5,769
3,980
Prepaid expenses and other current
assets
7,097
6,207
Total current assets
279,622
292,288
Long-term accounts receivable, net
1,338
1,087
Property and equipment, net
22,273
14,315
Operating lease assets
11,613
12,181
Goodwill and other intangible assets,
net
119,607
126,348
Other assets – long-term
1,566
1,110
Total assets
$
436,019
$
447,329
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities
Accounts payable
$
6,929
$
4,731
Accrued compensation
22,405
24,358
Operating lease liabilities
1,091
1,777
Other accrued and current liabilities
5,899
5,262
Total current liabilities
36,324
36,128
Noncurrent operating lease liabilities
13,435
11,533
Deferred tax liability
441
428
Other liabilities
36
90
Total liabilities
50,236
48,179
Stockholders’ Equity
Common stock
27
27
Additional paid-in capital
601,618
560,409
Accumulated deficit
(215,791
)
(160,905
)
Accumulated other comprehensive loss
(71
)
(381
)
Total stockholders’ equity
385,783
399,150
Total liabilities and stockholders’
equity
$
436,019
$
447,329
CASTLE BIOSCIENCES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Nine Months Ended
September 30,
2023
2022
OPERATING ACTIVITIES
Net loss
$
(54,886
)
$
(46,520
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
9,106
7,702
Stock-based compensation expense
39,417
26,398
Change in fair value of contingent
consideration
—
(17,987
)
Deferred income taxes
13
(1,839
)
Accretion of discounts on marketable
investment securities
(3,851
)
(184
)
Other
284
186
Change in operating assets and
liabilities:
Accounts receivable
(13,779
)
(5,678
)
Prepaid expenses and other current
assets
(892
)
(1,870
)
Inventory
(1,789
)
(1,502
)
Operating lease assets
(590
)
694
Other assets
(455
)
533
Accounts payable
2,693
2,155
Operating lease liabilities
1,093
(559
)
Accrued compensation
(1,953
)
3,669
Other accrued and current liabilities
1,376
(853
)
Net cash used in operating activities
(24,213
)
(35,655
)
INVESTING ACTIVITIES
Purchases of property and equipment
(9,828
)
(3,845
)
Asset acquisition, adjustment to purchase
price
—
547
Acquisition of business, net of cash and
cash equivalents acquired
—
(26,966
)
Proceeds from sale of property and
equipment
10
9
Purchases of marketable investment
securities
(136,693
)
(131,808
)
Proceeds from maturities of marketable
investment securities
138,000
—
Net cash used in investing activities
(8,511
)
(162,063
)
FINANCING ACTIVITIES
Proceeds from exercise of common stock
options
197
675
Payment of employees’ taxes on vested
restricted stock units
(1,119
)
(134
)
Proceeds from contributions to the
employee stock purchase plan
2,027
1,812
Repayment of principal portion of finance
lease liabilities
(106
)
(88
)
Net cash provided by financing
activities
999
2,265
NET CHANGE IN CASH AND CASH
EQUIVALENTS
(31,725
)
(195,453
)
Beginning of period
122,948
329,633
End of period
$
91,223
$
134,180
CASTLE BIOSCIENCES, INC.
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 of non-GAAP
financial measures.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(in thousands)
Adjusted
revenues
Net revenues (GAAP)
$
61,493
$
37,011
$
153,668
$
98,701
Revenue associated with test reports
delivered in prior periods
(883
)
277
3,085
1,850
Adjusted revenues (Non-GAAP)
$
60,610
$
37,288
$
156,753
$
100,551
Adjusted gross
margin
Gross margin (GAAP)1
$
47,902
$
25,846
$
114,367
$
70,161
Amortization of acquired intangible
assets
2,272
2,306
6,742
6,051
Revenue associated with test reports
delivered in prior periods
(883
)
277
3,085
1,850
Adjusted gross margin (Non-GAAP)
$
49,291
$
28,429
$
124,194
$
78,062
Gross margin percentage (GAAP)2
77.9
%
69.8
%
74.4
%
71.1
%
Adjusted gross margin percentage
(Non-GAAP)3
81.3
%
76.2
%
79.2
%
77.6
%
1.
Calculated as net revenues (GAAP) less the
sum of cost of sales (exclusive of amortization of acquired
intangible assets) and amortization of acquired intangible
assets.
2.
Calculated as gross margin (GAAP) divided
by net revenues (GAAP).
3.
Calculated as adjusted gross margin
(Non-GAAP) divided by adjusted revenues (Non-GAAP).
The table below presents the reconciliation of adjusted EBITDA,
which is a non-GAAP financial measure. See "Use of Non-GAAP
Financial Measures (UNAUDITED)" above for further information
regarding the Company's use of non-GAAP financial measures.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
(in thousands)
Adjusted
EBITDA
Net loss
$
(6,905
)
$
(20,249
)
$
(54,886
)
$
(46,520
)
Interest income1
(2,769
)
(1,293
)
(7,504
)
(1,693
)
Interest expense
2
6
9
13
Income tax expense (benefit)
32
—
62
(1,823
)
Depreciation and amortization expense
3,174
2,923
9,106
7,702
Stock-based compensation expense
13,043
9,196
39,417
26,398
Change in fair value of contingent
consideration
—
(151
)
—
(17,987
)
Acquisition related transaction costs
—
—
—
1,711
Adjusted EBITDA (Non-GAAP)
$
6,577
$
(9,568
)
$
(13,796
)
$
(32,199
)
1.
Beginning in the fourth quarter of 2022,
we began excluding interest income from the calculation of Adjusted
EBITDA. The prior-year period presented herein has been recast to
conform to the current period presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231102718191/en/
Investor Relations Contact: Camilla Zuckero
czuckero@castlebiosciences.com 281-906-3868
Media Contact: Allison Marshall
amarshall@castlebiosciences.com
Castle Biosciences (NASDAQ:CSTL)
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