Q1 2025 Castle Biosciences Inc Earnings Call Transcript
Key Points
- Castle Biosciences Inc (CSTL) reported a 21% increase in revenue to $88 million for the first quarter of 2025, driven by a 33% growth in test report volume.
- The company has a strong balance sheet with $275 million in cash, cash equivalents, and marketable investment securities, providing flexibility for growth initiatives.
- Castle Biosciences Inc (CSTL) announced the acquisition of Previse, which is expected to strengthen its position in the gastrointestinal space.
- The DecisionDx-Melanoma test achieved a significant milestone with over 200,000 test orders since its launch, highlighting its adoption and impact on patient care.
- TissueCypher test reports grew by 117% year-over-year, indicating strong demand and acceptance in the gastroenterology community.
- The gross margin for the first quarter of 2025 was significantly impacted, dropping to 49.2% from 77.9% in the first quarter of 2024, due to a one-time adjustment related to the discontinuation of IDgenetix.
- Castle Biosciences Inc (CSTL) reported a net loss of $25.8 million for the first quarter of 2025, compared to a net loss of $2.5 million in the same period of 2024.
- The DecisionDx-SCC test faced reimbursement challenges, with the Novitas Local Coverage Determination policy including noncoverage language, impacting revenue expectations.
- Operating expenses increased to $115.9 million in the first quarter of 2025 from $78.4 million in the first quarter of 2024, driven by higher personnel costs and business development activities.
- The company decided to discontinue the IDgenetix test effective May 2025, reallocating resources to other areas with unmet clinical needs.
Good afternoon, and welcome to Castle Biosciences first quarter 2025 conference call. As a reminder, today's call is being recorded. We will begin today's call with opening remarks and introductions, followed by a question-and-answer session.
I would like to turn the call over to Camilla Zuckero, Vice President of Investor Relations and Corporate Affairs. Please go ahead.
Thank you, operator. Good afternoon, everyone. Welcome to Castle Biosciences first quarter 2025 results conference call. Joining me today are Castle's Founder, President and Chief Executive Officer, Derek Maetzold; Chief Financial Officer, Frank Stokes; and Senior Vice President, Medical, Dr. Matthew Goldberg, Board-certified dermatologist and dermatopathologist.
Information recorded on this call speaks only as of today, May 5, 2025. Therefore, if you are listening to the replay or reading this transcript of this call, any time-sensitive information may no longer be accurate.
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