Castle Biosciences (CSTL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 39–39.5% year-over-year to $85.8 million, with total test reports up 41–41.3% to 26,010, and net income of $2.3 million, reversing a net loss in Q3 2023.

• Full-year 2024 revenue guidance raised to $320–330 million, reflecting 45–50% year-over-year growth and strong business momentum.

• Demonstrated robust clinical adoption and validation for core dermatology, gastroenterology, and mental health tests, supported by multiple peer-reviewed publications.

• Strategic focus on expanding test adoption, payer reimbursement, and disciplined capital allocation to drive value creation.

• Company remains focused on expanding its test portfolio, commercial reach, and R&D pipeline, while maintaining strong liquidity.

Financial highlights

• Q3 2024 revenue was $85.8 million (up 39–39.5% year-over-year); adjusted revenue was $86.3 million (up 42%).

• Gross margin was 79–79.2% (up from 77.9%); adjusted gross margin was 81.9–82%.

• Net income for Q3 2024 was $2.3 million; diluted EPS was $0.08 (vs. -$0.26 in Q3 2023).

• Adjusted EBITDA was $21.6 million, up from $6.6 million year-over-year.

• Cash, cash equivalents, and marketable securities as of September 30, 2024, totaled $279.8 million.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $320–330 million, reflecting strong year-to-date performance.

• Guidance incorporates potential Q4 volume impacts from hurricanes affecting dermatology practices.

• Expectation to remain operating cash flow positive for full-year 2025, excluding non-cash stock-based compensation.

• Anticipates launch of pipeline expansion, including an inflammatory skin disease test, by end of 2025.

• Management expects continued momentum and profitability based on current business fundamentals.