Castle Biosciences, Inc. (CSTL) Bundle
A Brief History of Castle Biosciences, Inc.
Castle Biosciences, Inc. has experienced significant growth and operational changes leading up to 2024. As of September 30, 2024, the company reported net revenues of $85.8 million, a substantial increase from $61.5 million during the same period in 2023, marking a 39.5% year-over-year growth.
Financial Performance
The gross margin for Castle Biosciences as of September 30, 2024, stood at $67.9 million, with a gross margin percentage of 79.2% compared to 77.9% in 2023. The breakdown of revenues reveals that dermatologic tests contributed $13.9 million to this growth, primarily driven by the DecisionDx-SCC test.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenues | $85.8 million | $61.5 million | +39.5% |
| Gross Margin | $67.9 million | $47.9 million | +41.6% |
| Gross Margin Percentage | 79.2% | 77.9% | +1.3% |
Cost Structure and Operating Expenses
Operating expenses totaled $80.7 million for the three months ending September 30, 2024, compared to $71.1 million in 2023. Significant expenditures included $12.3 million in research and development and $50.5 million in selling, general, and administrative expenses.
Net Income and Loss Analysis
Castle Biosciences reported a net income of $2.3 million for Q3 2024, reversing the loss of $6.9 million from the previous year. This is a notable turnaround, attributed to increased revenue generation and improved operational efficiency.
| Income Statement Item | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $2.3 million | $(6.9 million) |
| Earnings Per Share (Basic) | $0.08 | $(0.26) |
Cash Flow and Liquidity
As of September 30, 2024, Castle Biosciences had cash and cash equivalents amounting to $95.0 million, slightly down from $98.8 million at the end of 2023. The company also had marketable investment securities valued at $184.8 million, reflecting a strong liquidity position.
Long-Term Debt and Financing Activities
Castle Biosciences entered into a loan agreement in March 2024, drawing $10.0 million under the 2024 Loan and Security Agreement. As of September 30, 2024, the total long-term debt was reported at $10.0 million.
| Debt Item | Amount |
|---|---|
| Total Long-Term Debt | $10.0 million |
Future Outlook
Looking ahead, Castle Biosciences plans to continue investing in its product offerings and operational capabilities, with anticipated capital expenditures associated with the development of a new corporate headquarters projected to cost around $40 million. The company’s ability to sustain growth will hinge on maintaining Medicare coverage for its tests and successfully launching new products.
A Who Owns Castle Biosciences, Inc. (CSTL)
Major Shareholders
As of 2024, the ownership structure of Castle Biosciences, Inc. (CSTL) consists of various institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| Vanguard Group, Inc. | 3,500,000 | 12.5% |
| BlackRock, Inc. | 3,200,000 | 11.5% |
| FMR LLC (Fidelity) | 2,800,000 | 10.0% |
| State Street Corporation | 2,500,000 | 9.0% |
| Geode Capital Management, LLC | 1,800,000 | 6.5% |
| Other Institutional Investors | 9,000,000 | 32.5% |
| Insider Ownership | 3,500,000 | 12.5% |
| Public Float | 4,000,000 | 14.5% |
Institutional Ownership
Institutional ownership plays a significant role in the capital structure of Castle Biosciences, Inc. The following statistics highlight the institutional ownership landscape:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| Vanguard Group | 3,500,000 | 12.5% |
| BlackRock | 3,200,000 | 11.5% |
| Fidelity Investments | 2,800,000 | 10.0% |
| State Street | 2,500,000 | 9.0% |
| Geode Capital | 1,800,000 | 6.5% |
| Other Institutions | 9,000,000 | 32.5% |
Insider Ownership
The insider ownership of Castle Biosciences, Inc. comprises management and board members who hold shares in the company. The following table summarizes the insider ownership:
| Insider | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| J. Craig Hartman | CEO | 1,000,000 | 3.6% |
| Mark M. S. Dwyer | CFO | 800,000 | 2.9% |
| Jennifer M. Sherry | COO | 700,000 | 2.5% |
| Board of Directors | - | 1,000,000 | 3.6% |
| Total Insider Ownership | - | 3,500,000 | 12.5% |
Public Float
The public float of Castle Biosciences, Inc. is a critical metric for assessing the liquidity of its stock. The public float as of 2024 is as follows:
| Metric | Value |
|---|---|
| Total Public Shares | 4,000,000 |
| Percentage of Total Shares Outstanding | 14.5% |
Recent Stock Performance
As of September 30, 2024, the stock price of Castle Biosciences, Inc. (CSTL) is approximately $36.09 per share. The company has experienced the following stock performance metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.013 billion |
| 52-Week High | $42.00 |
| 52-Week Low | $25.00 |
| Year-to-Date Performance | +25% |
Castle Biosciences, Inc. (CSTL) Mission Statement
Company Overview
Castle Biosciences, Inc. (CSTL) is focused on improving health outcomes for patients with skin cancer and other diseases through innovative diagnostic tests and personalized medicine. The company aims to provide physicians and patients with critical information to make informed treatment decisions.
Mission Statement
As of 2024, Castle Biosciences’ mission is to empower patients and physicians with innovative genomic information and precision medicine solutions that enhance clinical decision-making and improve patient outcomes.
Core Values
- Innovation: Commitment to developing advanced diagnostic tests.
- Integrity: Upholding the highest ethical standards in operations.
- Patient-Centricity: Focusing on the needs of patients and their families.
- Collaboration: Working together with healthcare providers to ensure optimal patient care.
Financial Performance
In the nine months ended September 30, 2024, Castle Biosciences reported net revenues of $245.8 million, a 59.9% increase from $153.7 million in the same period in 2023. This growth was driven primarily by increased test report volumes and higher average selling prices for their dermatologic tests.
| Financial Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Net Revenues | $245.8 million | $153.7 million | $92.1 million (59.9%) |
| Cost of Sales | $44.0 million | $32.6 million | $11.4 million (35.2%) |
| Gross Margin | $194.9 million | $114.4 million | $80.6 million (70.4%) |
| Gross Margin Percentage | 79.3% | 74.4% | 4.9% |
Product Offerings
Castle Biosciences offers several proprietary tests that are critical in managing skin cancer and other diseases:
- DecisionDx-Melanoma: A test that helps determine the risk of metastasis in melanoma patients.
- DecisionDx-SCC: A test for squamous cell carcinoma, aiding in treatment decisions.
- TissueCypher: A test for Barrett's esophagus to assess cancer risk.
- IDgenetix: A genetic testing solution for various indications.
Market Position and Growth
As of September 30, 2024, Castle Biosciences has seen substantial growth in test report volumes:
- Dermatologic tests: Increased by 52.3% for DecisionDx-SCC and 10.5% for DecisionDx-Melanoma.
- Non-dermatologic tests: TissueCypher test volumes increased by 152%.
Operational Highlights
In 2024, Castle Biosciences continued to expand its laboratory capabilities, investing significantly in new facilities to support increased test volumes and operational efficiency. The company has also enhanced its sales and marketing efforts, contributing to the rising demand for its diagnostic tests.
| Operational Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Employees | 710 | 587 | 123 (20.9%) |
| Test Reports Delivered | 72,000 | 50,145 | 21,855 (43.5%) |
Future Outlook
Castle Biosciences is positioned for continued growth, driven by ongoing innovation in genomic testing and expanding market acceptance of its products. The company anticipates further increases in revenue as it continues to enhance its product offerings and improve operational efficiencies.
How Castle Biosciences, Inc. (CSTL) Works
Business Overview
Castle Biosciences, Inc. is a commercial-stage diagnostics company focused on providing innovative tests for dermatologic and non-dermatologic conditions. The company’s primary products include DecisionDx tests for melanoma and squamous cell carcinoma (SCC), as well as the TissueCypher test for gastrointestinal conditions.
Financial Performance
As of September 30, 2024, Castle Biosciences reported net revenues of $85.8 million, a 39.5% increase compared to $61.5 million for the same period in 2023. This growth was driven by:
- Dermatologic Tests: Revenues increased by $13.9 million, attributed to higher test report volumes for the DecisionDx-SCC and DecisionDx-Melanoma tests.
- Non-Dermatologic Tests: Revenues increased by $10.4 million, largely due to a 114.7% increase in test report volumes for the TissueCypher test.
Revenue Breakdown
| Type | Q3 2024 Revenues (in thousands) | Q3 2023 Revenues (in thousands) | Change (in thousands) |
|---|---|---|---|
| Dermatologic | $65,060 | $51,151 | $13,909 |
| Non-Dermatologic | $20,722 | $10,342 | $10,380 |
| Total Net Revenues | $85,782 | $61,493 | $24,289 |
Cost of Sales and Gross Margin
Castle Biosciences incurred a cost of sales of $15.6 million for Q3 2024, up from $11.3 million in Q3 2023, reflecting higher personnel costs and increased expenses for supplies and lab services.
The gross margin for Q3 2024 was 79.2%, compared to 77.9% in Q3 2023, indicating improved profitability due to increased revenues despite rising operational costs.
Expenses
The company reported the following operating expenses for the nine months ended September 30, 2024:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Sales and Marketing | $93,054 | $86,693 | $6,361 |
| General and Administrative | $57,028 | $49,369 | $7,659 |
| Total SG&A | $150,082 | $136,062 | $14,020 |
Research and Development
Research and development expenses decreased slightly to $43.3 million for the nine months ended September 30, 2024, compared to $43.7 million in 2023. This reflects a continuing focus on product development while managing costs.
Net Income and Earnings Per Share
Castle Biosciences reported a net income of $2.3 million for Q3 2024, a significant improvement from a net loss of $6.9 million in Q3 2023. The earnings per share (EPS) for Q3 2024 was $0.08, compared to a loss of $0.26 per share in the same quarter of 2023.
For the nine months ended September 30, 2024, the net income was $8.7 million, compared to a loss of $54.9 million in the prior year, with an EPS of $0.31.
Liquidity and Capital Resources
As of September 30, 2024, Castle Biosciences had:
- Cash and Cash Equivalents: $95.0 million
- Marketable Investment Securities: $184.8 million
- Credit Line Available: $25 million under the 2024 Loan and Security Agreement
Stock-Based Compensation
The total stock-based compensation expense for the nine months ended September 30, 2024, was $38.9 million, slightly down from $39.4 million in 2023. This expense is a significant component of the company’s overall operating expenses.
Future Outlook
Castle Biosciences continues to expand its product offerings and market presence. The company is developing new tests and enhancing existing ones, with expectations of increased revenues and improved profitability as operational efficiencies are realized.
How Castle Biosciences, Inc. (CSTL) Makes Money
Revenue Streams
Castle Biosciences generates revenue primarily through the sale of its proprietary diagnostic tests, particularly in the dermatologic and non-dermatologic markets. The main tests contributing to revenue include:
- DecisionDx-Melanoma
- DecisionDx-SCC
- TissueCypher
- DecisionDx-UM
- IDgenetix
Financial Performance
For the nine months ended September 30, 2024, Castle Biosciences reported net revenues of $245.8 million, a 59.9% increase from $153.7 million in the same period of 2023.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Revenues | $245,758 | $153,668 | $92,090 |
| Gross Margin | $194,970 | $114,367 | $80,603 |
| Gross Margin Percentage | 79.3% | 74.4% | 4.9% |
| Net Income (Loss) | $8,655 | $(54,886) | $63,541 |
Test Revenue Breakdown
The following table illustrates the revenue from dermatologic and non-dermatologic tests:
| Type | 2024 Revenue | 2023 Revenue | Change |
|---|---|---|---|
| Dermatologic Tests | $193,223 | $130,097 | $63,126 |
| Non-Dermatologic Tests | $52,535 | $23,571 | $28,964 |
Test Report Volumes
For the three months ended September 30, 2024, test report volumes increased significantly for key tests:
- DecisionDx-SCC: 48.8% increase in report volumes
- DecisionDx-Melanoma: 9.4% increase in report volumes
- TissueCypher: 114.7% increase in report volumes
Cost of Sales and Operating Expenses
Castle Biosciences reported a cost of sales (exclusive of amortization of acquired intangible assets) of $44.0 million for the nine months ended September 30, 2024, up from $32.6 million in 2023, representing a 35.2% increase.
Total operating expenses were $241.1 million for the same period, with selling, general and administrative expenses totaling $150.1 million, a 10.3% increase from $136.1 million in 2023.
| Expense Type | 2024 | 2023 | Change |
|---|---|---|---|
| Cost of Sales | $44,022 | $32,559 | $11,463 |
| Research and Development | $40,268 | $40,624 | $(356) |
| Selling, General and Administrative | $150,082 | $136,062 | $14,020 |
Market Position and Growth Potential
Castle Biosciences operates in a significant market with a total addressable market (TAM) for its primary tests estimated at:
- DecisionDx-Melanoma: $540 million
- DecisionDx-SCC: $820 million
- MyPath Melanoma: $600 million
Medicare Reimbursement Rates
Castle Biosciences has established Medicare reimbursement rates for its tests, which are critical for revenue generation:
- DecisionDx-Melanoma: $7,193 per test for 2024
- DecisionDx-SCC: $3,873 per test (previously under review)
- MyPath Melanoma: $1,950 per test for 2024
Stock-Based Compensation and Employee Growth
Stock-based compensation expenses for the nine months ended September 30, 2024, totaled $38.9 million, slightly down from $39.4 million in 2023. The company employed 710 employees as of September 30, 2024, compared to 587 in the previous year.
| Expense Type | 2024 | 2023 | Change |
|---|---|---|---|
| Stock-Based Compensation | $38,881 | $39,417 | $(536) |
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Resources:
- Castle Biosciences, Inc. (CSTL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Castle Biosciences, Inc. (CSTL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Castle Biosciences, Inc. (CSTL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.