Castle Biosciences Inc (NASDAQ:CSTL) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 04:30 pm ET

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Castle Biosciences Inc (NASDAQ:CSTL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, and welcome to Castle Biosciences Second Quarter 2020 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 Frank Stokes, Chief Financial Officer. Please go ahead.

Executive
Frank Stokes

Thank you, operator. Good afternoon, everyone. Welcome to Castle Biosciences' second quarter 2020 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, August 10, 2020. Therefore, if you're listening to the 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 three weeks.

Before we begin, I would 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, including expectations and assumptions related to the impact of the COVID-19 pandemic 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 Annual Report on Form 10-K for the year ended December 31, 2019 and in 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'll now turn the call over to Derek.

Executive
Derek Maetzold

Thank you, Frank and good afternoon, everyone. We, thank you for joining us today. This afternoon, I'll discuss COVID's impact in our results, the recent trends we've seen and our performance for the quarter, then Frank will provide more detail on the second quarter results and our financial position. While our second quarter results reflect impact from COVID-19. Thanks for the strong execution by our employees, we're successfully navigating these challenging times.

We're pleased that we maintain strong gross margins, saw a year-over-year increase in revenue and deliver positive operating cash flow. Additionally, we're making strong progress on our near and long-term strategic growth plans. And importantly, in order to serve patients who have been diagnosed with melanoma and the clinicians who treat them. We maintain uninterrupted access to our proprietary DecisionDx-Melanoma test and our DecisionDx-UM test with normal churn around times for delivery of test reports.

As you would expect second quarter 2020 revenue and report volume were impacted by COVID-19. Specifically in the second quarter of 2020, revenue was $12.7 million, an 18% increase from