Castle Biosciences Inc (NASDAQ:CSTL) Q2 2019 Earnings Conference Call Transcript

Sep 03, 2019 • 04:30 pm ET

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Castle Biosciences Inc (NASDAQ:CSTL) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day ladies and gentlemen and welcome to the Castle Biosciences' Second Quarter Financial Results Conference Call.

[Operator Instructions]

I'd not like to introduce your host for today's conference. Frank Stokes, Chief Financial Officer. You may begin.

Executive
Frank Stokes

Thank you operator. Welcome to the Castle Biosciences' second quarter 2019 financial results conference call. Joining me today is Castle's Founder, President and Chief Executive Officer, Derek Maetzold.

Information recorded on this call speaks only as of today, September 3rd, 2019. Therefore, if you are listening to this replay or reading the transcript of this call, any time sensitive information may no longer be accurate. A recording of today's call will be available on the Investor Relations page of the Company's website for approximately two weeks.

Before we begin, I'd like to remind you that some of the information discussed today may contain projections or other forward-looking statements, regarding future events or the future financial performance of the Company and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon current expectations and involve inherent risks and uncertainties, and there can be no assurances that the results contemplated in these statements will be realized. A number of factors and risks could cause actual results to differ materially from those contained in these forward-looking statements.

These factors and other risks and uncertainties are described in detail in the Company's final prospectus, filed with the Securities and Exchange Commission on July 26, 2019, relating to our registration statements on Form S-1 and the Company's other documents and reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of today, and we assume no obligation to update or revise these forward-looking statements as circumstances change.

I will now turn the call over to Derek Maetzold.

Executive
Derek J. Maetzold

Thank you, Frank. Good afternoon, everyone and welcome. We are pleased to report that Castle had a strong second quarter performance, recognizing $10.7 million in revenue. Overall, we delivered 4,067 proprietary gene expression profile test for our DecisionDx-Melanoma and DecisionDx-UM tests during the second quarter of 2019, representing an overall growth of 24% compared to the 3,281 test reports delivered during the second quarter of 2018.

Our primary growth driver, our DecisionDx-Melanoma proprietary gene expression profile test for cutaneous melanoma, we provided 3,691 test reports in the second quarter of 2019, compared to 2,899 reports during the second quarter of 2018, representing growth of 27%. As a reminder, we expanded our sales team from 14 to 23 outside territories in the first quarter of 2019. This second quarter represents, therefore, the first full quarter since this expansion. And our performance during this quarter is a reflection of this expansion, which drove both continued penetration within our base of existing physicians, as well as accelerated conversion of new prescribing physicians.

I'd now like to highlight several important achievements during the second quarter. For DecisionDx-Melanoma, we saw continued increased traction during the quarter. Our growth in new ordering