We are proud to report that our total revenue for 2022 is expected to exceed the top end of the guided range of $132–137 million. In addition, we have seen an impressive 58% increase in total test reports, along with a 37% year-over-year growth in DecisionDx®-Melanoma test report volume. Looking ahead to the end of 2022, we anticipate our cash, cash equivalents and marketable investment securities to be around $259 million.
Castle Biosciences, Inc. (Nasdaq: CSTL), a revolutionary company dedicated to improving healthcare through groundbreaking tests that aid patient care, has proudly revealed its preliminary performance results for the fourth quarter and full-year that concluded on December 31st, 2022.
Castle Biosciences made significant strides in 2022, with notable growth in revenue and test report volume, thanks to focused investments in acquisitions, evidence development, and an expanded commercial team. We are delighted to report that our initiatives have yielded successful results, and we anticipate meeting or surpassing the top end of our 2022 revenue guidance of $132-137 million.
Preliminary, Unaudited Fourth Quarter Ended Dec. 31, 2022, Highlights
- In the fourth quarter of 2022, we experienced a 52% increase in total test reports delivered compared to the same period in 2021, delivering a total of 12,563 test reports. This is a significant jump from the 8,242 test reports delivered in the fourth quarter of 2021.
- In the quarter, our DecisionDx®-Melanoma test reports skyrocketed by a whopping 29%, with 7,295 reports delivered compared to 5,635 in the fourth quarter of 2021.
- In the fourth quarter of 2021, DecisionDx®-SCC test reports totaled 1,844 – a whopping 46% increase from the 1,265 reported in the previous quarter.
- In the quarter, 822 MyPath® Melanoma and DiffDx®-Melanoma diagnostic gene expression profile (GEP) aggregate test reports were delivered, representing a 9% decrease from the 904 reports delivered in the fourth quarter of 2021.
- The number of DecisionDx®-UM test reports issued during the quarter dropped slightly to 432, from 438 in the prior quarter.
- In the fourth quarter of 2021, 996 TissueCypher® Barrett’s Esophagus test reports were delivered, while no test reports were delivered by Castle.
- In the fourth quarter of 2021, 1,174 test reports were delivered by IDgenetix®, while Castle delivered none.
Preliminary, Unaudited Year-Ended Dec. 31, 2022, Highlights
- The Company is poised to exceed expectations for full-year 2022 total revenue, with projections to reach the top end of its previously guided range of $132–137 million.
- In 2022, a staggering 44,338 test reports were delivered, a whopping 58% increase compared to the 28,118 reports delivered in 2021. This remarkable rise demonstrates the positive progress being made in the field of testing.
- The number of DecisionDx-Melanoma test reports delivered in 2022 soared to 27,797 – a staggering 37% increase from the 20,328 reported in 2021.
- The number of DecisionDx-SCC test reports delivered in 2022 skyrocketed by 70%, with a total of 5,966 compared to the 3,510 reports delivered in 2021.
- The number of Melanoma and DiffDx-Melanoma diagnostic GEP aggregate test reports delivered via MyPath in 2022 saw a notable rise of 34%, with 3,561 reports compared to 2,662 in 2021.
- The number of DecisionDx-UM test reports delivered in 2022 saw a 6% increase compared to 2021, with a total of 1,711 reports delivered. This is up from 1,618 reports in 2021.
- In 2022, 2,094 test reports for Barrett’s Esophagus were delivered, marking a stark contrast to the zero test reports delivered by Castle in 2021.
- In 2022, a remarkable 3,209 test reports were delivered by IDgenetix, a stark contrast to the absence of test reports in 2021 from Castle.
Revenues and Test Report Volumes Disclaimer
The macroeconomic landscape is constantly changing, with factors such as inflation, the COVID-19 pandemic and geopolitical events bringing a high level of uncertainty. The financial implications of these events are difficult to predict, so current revenue and test report volumes are not necessarily indicative of future performance.
Cash, Cash Equivalents and Marketable Investment Securities
At the end of 2022, our cash and cash equivalents are projected to be around $123 million and we plan to have a total of $136 million in short-term investments. With these resources, we are well-positioned to achieve our financial goals and continue our forward momentum.
As we have yet to complete the preparation of our financial statements for the quarter and year-ended Dec. 31, 2022, the preliminary, unaudited information presented in this press release is based on the initial review of the data and current expectations by management, and may be subject to change upon completion of the Company’s end-of-period reporting processes. We cannot guarantee that the financial information in this press release will match the information reflected in our financial statements at the end of the year, and a more complete understanding of our financial position and results of operations is required for a proper assessment. Therefore, please take care not to rely too heavily on this preliminary information.
About Castle Biosciences
Castle Biosciences (Nasdaq: CSTL) is a diagnostics company dedicated to improving healthcare through innovative tests that put the patient first. By transforming disease management, they strive to make a positive impact on the lives of patients, clinicians, employees and investors alike. With their cutting-edge approach, Castle Biosciences is revolutionizing the healthcare industry.
At Castle, we are dedicated to making a positive impact on healthcare by developing tests for life-threatening conditions like skin cancers, uveal melanoma, Barrett’s esophagus, and mental health issues. But we don’t stop there: our active research and development programs are actively working towards tests for other diseases in need, such as our upcoming test to predict systemic therapy response for patients with moderate-to-severe psoriasis, atopic dermatitis, and related conditions. We are committed to doing our part to improve healthcare and the lives of those affected.
Castle Biosciences, Inc. is the proud owner of several groundbreaking diagnostic technologies, including DecisionDx-Melanoma, DecisionDx-CMSeq, DecisionDx-SCC, MyPath Melanoma, DiffDx-Melanoma, DecisionDx-UM, DecisionDx-PRAME, DecisionDx-UMSeq, TissueCypher and IDgenetix. These tools are revolutionizing the way clinicians diagnose and treat serious illnesses such as melanoma, helping to improve the lives of countless patients.
We anticipate exceeding the top end of our total revenue guidance for 2022, and expect to have healthy cash and cash equivalents and short-term investments as of December 31, 2022. Our DecisionDx-Melanoma test results can help guide risk-aligned cutaneous melanoma management decisions and refine patient risk, reduce unnecessary procedures, and help ensure a more appropriate allocation of healthcare resources. Our TissueCypher test is beneficial in providing risk-stratification of patients with non-dysplastic BE, while our other tests are transforming disease management. However, there are risks and uncertainties that could cause our actual results to differ materially from those in our forward-looking statements, such as macroeconomic events, the COVID-19 pandemic, and subsequent study or trial results and findings. We are committed to monitoring our progress and striving to reach our goals.