NASDAQ$CSTL

Castle Biosciences Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Revenue increased by 39% year-over-year, driven by growth in test report deliveries and expanded clinical evidence supporting their use. Achieved profitability and raised full-year revenue guidance.

Castle Biosciences reported strong Q3 2024 results, with a 39% increase in revenue compared to Q3 2023, reaching $85.8 million. The company also saw a 41% increase in total test reports delivered. As a result of this strong performance, Castle Biosciences raised its full-year 2024 revenue guidance to $320-330 million.

  • Q3 2024 revenue increased 39% over Q3 2023 to $86 million.
  • Q3 2024 total test reports increased 41% over Q3 2023.
  • Net income was $2.3 million, compared to a net loss of $(6.9) million for the same period in 2023.
  • Full-year 2024 revenue guidance was raised to $320-330 million from $275-300 million.

Headline financials

Total Revenue

$85.8M

Previous: $61.5M+39.5%
EPS (adj)

$0.08

Previous: -$0.26+130.8%
Capital Expenditures

-$20.8M

Previous: -$9.83M-111.2%
Free Cash Flow

-$18.5M

Previous: -$16.7M-10.5%
Net Income

$2.27M

Previous: -$6.91M+132.9%
Operating Income

$5.08M

Previous: -$9.64M+152.7%
Gross Profit

$70.2M

Previous: $50.2M+39.9%
Cash & Equivalents

$95M

Previous: $91.2M+4.1%
Total Assets

$515M

Previous: $436M+18.0%
R&D Expense

$12.2M

Previous: $12.8M-4.7%
Stock-Based Comp

$13M

Previous: $13M-0.1%

Revenue & EPS history

Castle Biosciences · Revenue · Quarterly

$85.8M

Q3 2024+39.5%vs Q3 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

The Company is increasing its guidance for anticipated total revenue in 2024 to between $320-330 million, compared to the previously provided guidance of between $275-300 million.

Tailwinds

  • Raising full-year 2024 revenue guidance to $320-330 million.
  • DecisionDx-SCC test provides more precise risk stratification.
  • DecisionDx-Melanoma can identify patients with a low risk of sentinel lymph node positivity.
  • TissueCypher Barrett’s Esophagus test to independently predict risk of progression to esophageal cancer.
  • TissueCypher significantly influenced physician management decisions for patients with non-dysplastic BE.

Headwinds

  • Subsequent study or trial results and findings may contradict earlier study or trial results and findings.
  • Planned installation of additional equipment and supporting technology infrastructures and implementation of certain process efficiencies may not enable increase the future scalability of TissueCypher Test.
  • Actual application of tests may not provide the aforementioned benefits to patients.
  • Newer gastroenterology and mental health franchises may not contribute to the achievement of long-term financial targets as anticipated.
  • Macroeconomic events and conditions, including inflation and monetary supply shifts, labor shortages and geopolitical events may affect our business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.1%

Avg return

Earnings day

-2.1%

Avg return

5 days after

+0.7%

Avg return

30 days after

41%

13 / 32 earnings

Positive

+21.8%

Q3 2025

Best reaction

-28.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-22.6%-14.4%
Q4 2025-7.3%-11.6%-26.2%
Q3 2025+21.8%+27.1%+52.4%
Q1 2025-11.7%-10.5%-9.2%
Q4 2024-14.2%-15.7%-21.1%
Q3 2024-6.0%+0.4%-3.8%
Q2 2024+11.8%+20.4%+29.8%
Q1 2024+10.5%+8.1%+5.6%
Q4 2023-28.0%-15.4%-11.7%
Q3 2023+14.5%+14.6%+27.2%
Q2 2023+12.3%+7.0%+17.6%
Q1 2023-0.2%+2.6%+3.0%
Q4 2022-7.7%-0.3%-10.2%
Q3 2022-6.0%-23.7%-0.4%
Q2 2022+0.3%+11.1%-12.6%
Q1 2022-4.1%-6.8%+3.1%
Q4 2021+4.5%-5.4%-1.5%
Q3 2021-7.2%-13.2%-23.2%
Q2 2021-4.9%-10.3%+6.5%
Q1 2021-9.5%-8.5%+17.5%
Q4 2020-9.9%-6.9%+2.3%
Q3 2020-3.3%-2.6%+12.3%
Q2 2020+0.1%-1.1%+19.8%
Q1 2020+17.1%+18.9%+22.4%
Q1 2019+17.1%+18.9%+22.4%
Q1 2018-1.5%-18.2%-4.7%
Q4 2019-1.5%-18.2%-4.7%
Q3 2018+20.0%-7.0%-6.1%
Q3 2019+18.2%+30.3%+32.9%
Q2 2018-6.9%-9.0%-33.8%
Q2 2019-6.9%-9.0%-33.8%
Q4 2018-6.9%-9.0%-33.8%

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