NEW YORK – Castle Biosciences reported after the close of the market on Thursday that its fourth quarter and full-year revenues both increased significantly year over year, driven by volume growth for its cancer tests, especially its recently launched TissueCypher Barrett's Esophagus assay.
For the three months ended Dec. 31, the firm's total revenues grew 31 percent to $86.3 million from $66.1 million a year ago and beat analyst's average estimate of $83.9 million.
Castle said that it delivered 24,071 total test reports, an increase of 19 percent compared to 20,284 in the same period of 2023. Year-over-year test volume increased substantially for some of its assays but fell for others.
The firm delivered 8,672 DecisionDx-Melanoma test reports in Q4 2024, up slightly from 8,591 in the fourth quarter of 2023. DecisionDx-SCC test volume also rose, to 4,299 tests from 3,530 in Q4 2023. The company delivered 6,672 TissueCypher Barrett's Esophagus test reports in Q4, nearly double the 3,441 Castle reported in the prior-year quarter. Test volume for its DecisionDx-UM test, which targets a much smaller population, rose to 424 tests from 405 year over year.
In contrast, Castle's Q4 MyPath Melanoma test reports dipped to 879 from 1,018 a year ago, while its Q4 IDgenetix test volume fell to 3,125 from 3,299 year over year.
The company said it changed the way it promoted IDgenetix last December in light of shifts in the reimbursement landscape for psychiatric pharmacogenomic testing.
Castle reported Q4 2024 net income of $9.6 million, or $.32 per share, compared to a net loss of $2.6 million, or $.10 per share, in the same period of 2023, beating analysts' average EPS estimate of $.04.
The company's Q4 R&D expenses fell 9 percent year over year to $11.8 million from $13.0 million while its SG&A costs rose 13 percent to $50.0 million from $44.1 million.
For the full year, Castle's revenues rose 51 percent to $332.1 million from $219.8 million in 2023, beating the Wall Street estimate of $329.6 million.
The firm delivered 96,071 total test reports in 2024, up 36 percent from 70,429 in 2023.
The firm reported full-year net income of $18.3 million, or $.62 per share, compared to a net loss of $57.5 million, or $2.14 per share, in 2023. Analysts, on average, had predicted per-share income of $.40.
Castle's full-year R&D expenses dropped slightly to $52.0 million from $53.6 million in 2023, while its 2024 SG&A costs grew 11 percent to $200.0 million from $180.2 million.
The company ended the year with $119.7 million in cash and cash equivalents and $173.4 million in marketable securities.
Castle said it anticipates generating between $280 million and $295 million in total revenue in 2025.