NEW YORK – Castle Biosciences said Thursday that its third quarter 2024 revenues were up 39 percent year over year as test volumes grew across the firm's leading tests.
For the three months ended Sept. 30, the company reported $85.8 million in total revenues compared to $61.5 million in the third quarter of 2023, beating analysts' average expectation of $79.8 million.
Excluding the effects of revenue adjustments related to tests delivered in prior periods, the firm's adjusted revenues totaled $86.3 million in the quarter, a 42 percent increase compared to $60.6 million for Q3 2023.
Castle said that it delivered 26,010 total test reports in Q3 2024, an increase of 41 percent compared to 18,409 test reports in the same period last year. This included 9,367 DecisionDx-Melanoma tests, 4,195 DecisionDx-SCC tests, 6,073 TissueCypher Barrett's Esophagus tests, and 5,045 IDgenetix tests.
Test volumes for its MyPath Melanoma and DecisionDx-UM tests dropped year over year to 933 from 1,011 and 397 from 399, respectively.
Castle's Q3 R&D costs were $12.3 million, down around 5 percent from $12.9 million in the same quarter last year. Its SG&A spending was $50.5 million, up 13 percent from $44.6 million.
Castle's net income for the quarter was $2.3 million, or $.08 per share, compared to a net loss of $6.9 million, or $.26 per share, for the same period in 2023. Analysts, on average, had predicted a net loss of $.06 per share.
Castle CEO and President Derek Maetzold said in a statement that Castle believes the results demonstrate both the strength of its business model and the trust patients and clinicians place in the firm.
"We were particularly excited about the recent publication of a new study which confirmed the use of DecisionDx-SCC in identifying which patients with high-risk cutaneous squamous cell carcinoma (SCC) will have a low or high likelihood of benefiting from adjuvant radiation therapy," he added. The study was the second this year to demonstrate clinical utility for the assay.
Maetzold said that Castle has raised its full-year 2024 total revenue guidance to a range of $320 million to $330 million, up from the $275 million to $300 million it had projected earlier this year.
The firm ended the quarter with $95.0 million in cash and cash equivalents and $184.8 million in short-term marketable securities.