Castle Biosciences Inc (CSTL, Financial) announced its financial results for the third quarter and nine months ended September 30, 2023, on November 2, 2023. The company reported a significant increase in revenue and total test reports, demonstrating the strength of its business fundamentals and innovative test portfolio.
Financial and Operational Highlights
For the third quarter ended September 30, 2023, Castle Biosciences reported revenues of $61.5 million, a 66% increase compared to $37.0 million during the same period in 2022. The company delivered 18,409 total test reports in the third quarter of 2023, an increase of 52% compared to 12,114 in the same period of 2022. The gross margin for the quarter was 78%, and the adjusted gross margin was 81%.
For the nine months ended September 30, 2023, the company reported revenues of $153.7 million, a 56% increase compared to $98.7 million during the same period in 2022. The company delivered 50,145 total test reports in the nine months ended September 30, 2023, an increase of 58% compared to 31,775 in the same period of 2022. The gross margin for the nine months was 74%, and the adjusted gross margin was 79%.
Company Outlook
Given the consistent performance year-to-date and confidence in the business, Castle Biosciences is raising its 2023 revenue guidance to at least $200 million, up from at least $180 million. The company continues to invest in strategic growth initiatives across its entire test portfolio, maintaining a firm focus on financial discipline.
Recent Accomplishments and Highlights
In the third quarter of 2023, Castle Biosciences announced several new studies demonstrating the clinical utility of its tests. The company also earned a Top Workplaces National Industry Award, ranking third among 84 Top Workplaces in the healthcare industry. Furthermore, the company received its Clinical Laboratory Permit from the New York State Department of Health for its laboratory in Pittsburgh, allowing both of its laboratories to provide test services to patients and physicians in the state of New York.
Castle Biosciences is a leading diagnostics company improving health through innovative tests that guide patient care. The company's current portfolio consists of tests for skin cancers, uveal melanoma, Barrett’s esophagus, and mental health conditions.
Explore the complete 8-K earnings release (here) from Castle Biosciences Inc for further details.
