NEW YORK – Castle Biosciences reported after the close of the market on Wednesday a 72 percent increase in fourth quarter revenues on strong growth across nearly all of its diagnostic test categories.
For the three months ended Dec. 31, Castle reported revenues of $66.1 million compared to $38.3 million a year ago. Adjusted Q4 revenues, which exclude the effects of revenue adjustments related to tests delivered in prior periods, were $70.2 million, an 87 percent increase from $37.5 million in Q4 2022.
Castle delivered 20,284 test reports in Q4, up 60 percent from 12,644 in the year-ago quarter. This included 8,591 DecisionDx-Melanoma test reports, up 18 percent over the prior-year period, and 3,530 DecisionDx-SCC test reports, a 91 percent year-over-year increase.
Castle also saw year-over-year increases in the number of MyPath Melanoma (24 percent), TissueCypher Barrett's Esophagus (234 percent), and IDgenetix (172 percent) test reports delivered. The company said it delivered 405 DecisionDx-UM test reports in Q4, a decrease of 6 percent.
R&D expenses increased 15 percent in Q4, to $13.0 million from $11.3 million in the year-ago quarter, while SG&A costs also rose 15 percent, to $44.1 million from $38.4 million.
The company shaved its Q4 net loss to $2.6 million, or $.10 per share, from a net loss of $20.6 million, or $.78 per share, in the year-ago quarter.
Castle reported full-year 2023 revenues of $219.8 million, up 60 percent from $137.0 million in 2022. Adjusted revenues excluding revenue adjustments related to tests delivered in prior periods were $224.3 million, up 61 percent from $139.0 million in 2022.
The firm delivered 70,429 test reports in 2023, up 59 percent from 44,419 in 2022. This included 33,330 DecisionDx-Melanoma test reports, up 20 percent year over year, and 11,442 DecisionDx-SCC test reports, up 92 percent year over year.
Castle also saw year-over-year increases in the number of MyPath Melanoma/DiffDx Melanoma (11 percent), TissueCypher Barrett's Esophagus (328 percent), and IDgenetix (236 percent) test reports delivered. The company said it delivered 1,674 DecisionDx-UM test reports in Q4, a decrease of 2 percent.
"2023 was another exceptional year, with strong top-line growth and test report volume growth, driven in large part by consistent execution by the entire Castle team," Castle Bio CEO Derek Maetzold said in a statement. "I am extremely pleased with the continued success we saw from careful investments in our initiatives. We expanded our body of evidence, with data further demonstrating the potential of our tests to improve patient outcomes, including increased survival. In addition, our foundational dermatology business continued to expand solidly, and growth in our TissueCypher Barrett's Esophagus test outpaced our expectations."
R&D expenses for full-year 2023 increased 19 percent year over year, to $53.6 million from $44.9 million, while SG&A costs jumped 26 percent to $180.2 million from $143.0 million.
Net loss for 2023 amounted to $57.5 million, or $2.14 per share, down from a net loss of $67.1 million, or $2.58 per share, in 2022.
The company finished the year with $98.8 million in cash and cash equivalents and $144.3 million in marketable investment securities.
Castle said it anticipates generating $235 million to $240 million in revenue in 2024.
In midmorning trading on the Nasdaq, shares of Castle Biosciences were down more than 13 percent at $21.10.