Castle Biosciences ( (CSTL) ) has released its Q4 earnings. Here is a breakdown of the information Castle Biosciences presented to its investors.
Castle Biosciences, Inc., a diagnostics company specializing in innovative tests for skin cancers, Barrett’s esophagus, mental health conditions, and uveal melanoma, has announced its financial results for the fourth quarter and full year of 2024. The company, based in Friendswood, Texas, aims to improve health outcomes through its advanced diagnostic tests that guide patient care.
In 2024, Castle Biosciences reported a significant revenue increase of 51% year-over-year, reaching $332 million, surpassing its previous guidance. The company delivered 96,071 test reports, marking a 36% increase compared to the previous year. The year ended with $293 million in cash, cash equivalents, and marketable investment securities, reflecting a $50 million increase from 2023.
Key financial highlights include a gross margin of 79% and an adjusted gross margin of 82%, both showing improvement from the previous year. The company achieved a net income of $18.2 million, a substantial turnaround from a net loss of $57.5 million in 2023. Adjusted EBITDA also saw a significant rise to $75 million from a negative $4.4 million in 2023. The company’s dermatologic and gastroenterology test reports showed notable growth, with a 17% increase in dermatologic tests and a 130% increase in TissueCypher Barrett’s Esophagus test reports.
Looking ahead, Castle Biosciences anticipates generating between $280-295 million in total revenue for 2025. The company plans to continue focusing on operational excellence and strategic opportunities to drive shareholder value. Management remains optimistic about maintaining momentum and expanding its clinical evidence base to support future growth.