Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to Castle Biosciences Fourth Quarter 2022 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 Camilla Zuckero, Vice President, Investor Relations and Corporate Affairs. Please go ahead.

Camilla Zuckero

call as this XX, today, on XXXX. recorded speaks of only February Information are replay no to transcript if listening Therefore, you the call, time-sensitive accurate. of any or information be may longer this the reading recording page the Relations today's the X for of will available company's be A on of Investor approximately website weeks. call

Reform release related and made The macroeconomic of I forward-looking statements contain or investments and and XXXX these would begin, of you the XXXX we earnings in include, regarding not will to Securities in pandemic to today remind financial to but XXXX. projections the our outlook, initiatives teams. items COVID-XX that including similar limited containing about the future our today and expectations meaning of Act the some our forward-looking our outlook, statements Before events impact to, our referenced growth impact commercial like assumptions and or issued TAM of -- conditions our Private statements Litigation the of statements future operational are the within and financial expanded performance, statements

other contained Forward-looking These assume no these filed of in and other and statements that Form Risk can based there reports to change. uncertainties, results as and with as these today, and inherent in December XXXX, heading forward-looking XX, These or be cause actual report are revise and number obligation risks could and statements risks uncertainties detail Factors Exchange materially statements Securities only involve circumstances be and in risks and those speak and ended forward-looking the company's the under upon differ company's XX-K we update Commission. the current for expectations year no contemplated realized. will on forward-looking the annual in from these the documents are factors described statements the in A assurances and of factors to results statements.

not been today discussed as GAAP. generally such accounting includes adjusted not accordance these to our performance. and Investor at information release adjusted of revenue, the addition used in These for and margin our tables Relations the company's a useful financial of issued some provide believe calculated the or metrics gross be principles page financial end as assessing non-GAAP which cash any substitute in United items have presented supplemental should to GAAP non-GAAP measures measures measures comparable revenue, with non-GAAP on directly addition, and States earnings In been of financial has in information that earlier posted most flow results. in the these of We Reconciliations the operating are GAAP EBITDA the the in today, accepted adjusted website.

gross comparable gross certain items in to are efforts. We unreasonable XXXX or reconciliation margin, measure target a GAAP without providing not adjusted we of contained because unable the the are margin most measure directly anticipated for to predict GAAP

I will to call turn Derek. now over the

Derek Maetzold

represents today Full Earnings Camilla, another Across Thank the fantastic joining and afternoon, and for us for XXXX Quarter of Castle's everyone. XXXX Castle. you, Thank board, Year you for Call. execution year Fourth good

highlights and excellent their results. of like execution, fantastic by to begin which Castle our our I the I'd personally team employee thanking Before start discussing Each the for to success. our contributes enabled today year, every

XX% range our results. finish, very the our financial end the quarter and and customers strong progress guided value to growth on XXXX. of top was tremendous a delivered was increase for $XXX we We serve. our We advances a made and year year initiatives revenue driving to over meaningful full a Castle. The million, XXXX delivered strong revenue patients of fourth our

expect provides us million. full a believe year of our XXXX total revenue and the $XXX success XXXX XX,XXX XXXX. over momentum growth Our were XXXX XX% in to test delivered in $XXX We for range reports million with

franchise. our believe despite turn with our now offerings, XX,XXX with DecisionDx-Melanoma, businesses. DecisionDx-SCC growth X MyPath We dermatology our ports a continued We highlights will and of significant starting each I to dermatologic our growth, delivered Melanoma increase XXXX. XXXX, represent tester XX% opportunity. dermatology over in future

continue the clinicians order see our We to first dermatologic new time. for tests very

we For DecisionDx-Melanoma approximately clinicians and in patients clinicians with order tests would believe the one stratification, ended dermatologic clinical to X,XXX. test addressing significant for addition December SCC our risk cell XX, saw unmet ordering already cutaneous In Dermatologic needs, our DecisionDx-SCC and we approximately would value find are new our the test. developing the ordering in as year for factors, opportunities see clinicians and were total XXXX, X,XXX we clinicians our or for be tests test, would strategic carcinoma risk therefore, squamous more many likely risk same who would leverage of diagnosing stratification be that with

year the investment provided growth approximately seeing XX, test the test today, ordering had leverage are should XXXX, in increased ordered our virtue believe We clinicians the to with by all of the ended fact continue also our initiatives of DecisionDx-Melanoma coupled this value XX% clinical during that DecisionDx-SCC We December our for year. adoption. by drive our

and robust include commercial programs. evolution initiatives growth R&D team Our peer-to-peer assessment regular and and investments

means real in to on of team focus pigment focused diagnosis profile in and a relates primarily on we XXXX, and DecisionDx-Melanoma sales investments, it assist to test established on differential smaller together dedicated the As expression dermatology This a point, dermatopathology supporting call our to lesions. gene focusing commercial that focusing team DecisionDx-SCC larger point. have team dedicated the a call our we

that As promotionally we target our responsive. seen market is historically have

in can believe to XXXX. investments momentum these commercial expanded continued contribute So we

outside assess of diagnostic we'll more slightly of necessary. team the than gene XXXX if strategy, to territories profile on our on teams, commercial have part including commercial the the today. and and dermatopathology, we we our commercial make long-term focused impact moderate ending focused separate As continuously that now team expression is and DecisionDx-SCC But plan with adjustments DecisionDx-Melanoma

offerings, to XXX XX for around In the sales we total X long territories believe sense XXXX, outside could teams commercial our term, dermatology with that is for us. dermatology beyond make

we investments in As it XX relates manuscripts XXXX. educational to support for had peer-reviewed alone, publications And both efforts customers. clinical our published serial dermatology new our Continuous in and existing R&D

turn on expectations to neurology I gas I comment for our to current DecisionDx-SCC. Before like franchise, would

late price outcome fourth XXXX, during and following that we their quarter to to into January our In CMS XXXX. was we completed process, decided contractor review the in a in our the were through In Separately, current XXXX, this of effect In would we fill interim, to gap since $X.XXX of XXXX. have the fill coverage go process in GAAP regular expect rate. gapfill evidentiary early [Novitas] the process quarter rate DecisionDx-SCC we from the in maintained just expect be XXXX. second of currently

draft broad future. for genetic a we is testing there streamlined whose LCD DL-XXXXX purpose, oncology, believe, is entitled Separately, in the reviews a

Separately, new Novitas when not to draft of timing. status LCD no If control a MolDx we LCD. Palmetto updates from a We the issued we draft. draft do LCD receive and over this MolDx on no have has date, and have

We expect to months it would take about finalize. XX

XXXX. final So coverage we expect to have determination from MolDx a in

potential from have no said LCD However, timing. Palmetto a about updates we earlier, as or new I

test to our Gastroenterology X,XXX reports I turn business. cypher would like in tissue delivered XXXX. now We

of Cipher XXXX. You December may we recall, in acquired Tissue

XXXX, to then significant quarter us which laboratory Pittsburgh tissue progress our in have is new of scale and since efforts We our to our forward the look in to test continue integration the second Pittsburgh. of enable cypher with made processing opening

Additionally, have facility and we or to well. process Pittsburgh tests expect the capacity as other

tissue momentum in the January that we of remind commercial the initial XXXX. test And cipher in late you that XXXX. given for we the team will our I third early we second in quarter, hired territories the saw quarter added

our the dermatology year number a team the progresses. assess territories as with expect business, to to continue As add of we will modest and

cipher, Finally, rate reimbursement for Medicare our XXXX tissue $X,XXX. is XXXX, and

June data As recalculated rate January an our Medicare will of based between discuss business. payer now upon ADLT, mental will XXXX. health XXXX I the collection for and be

April, when delivered acquired late Genetics remainder tests. X,XXX XXXX, From ID of we through the we

efforts are we the with to we pleased according seeing. and are plan, As integration our cipher, with progressing momentum are tissue

opportunity very just previously, pharmacogenomic matter an to markets. As we a series the mental large but large a of single health opportunity isn't a enter believe stated of market have and we

One focus and of in of drug-drug patients, factors objectives is all clinicians and seen their value test IGX will with drug gene be combined of market a by the those expect we report. where the on value including segments lifestyle to our single integration interactions

MolDX approximately reimbursed test. multitest XXXX to The been test entered unspecified year. contract IDgenetix a using with by with in the IDgenetix panel determine test-specific $X,XXX to CPT IDgenetix along code per IDgenetix at Medicare code. price a Medicare to and note historically a throughout territories we'll Z look has We solid built place of test. few multi-gene commercial add our on One currently is final team the a

conjunction CPT a their while updates, it In XXXX, thus, price does new for not code should code February The describe continue CPT CMS' code gap that IDgenetix. therefore, sequencing not provides multitest part using with additional new beginning fill code in set and the XXXX, CPT believe code. billing the CPT us Z of specificity components the XXXX. believe in is code in new code and as We, through IDgenetix IDgenetix at process MolDx The currently CPT Z of to $XXX code not generic new to contracted do the CPT all different we the specific March goes test. gene IGENX-specific appropriate notified the IDgenetix annual is shift

Now test. disease I on want our pipeline to inflammatory provide an skin update

who pipeline such the optimal and response therapy disease, or therapy reminder, in side therapy patients on to omosystemic systemic test a inflammatory is initiating to or were treatment-limiting systemic either psoriasis or of receiving experiencing effects. able be not in this diagnosed with atopic therapy a dermatitis predict skin response As are as focus to

validation enrolled XXX pleased X, the occurring method In under collection the we demonstrated committed noninvasive identity Development as February I protocols. XXXX, or data in test sites supporting umbrella technical thresholds. that to study. XXXX, of and that and our we report study identity past of XX had our of patients am our this have presented is

we end launch and second believe track XXXX. U.S. of initial in test If add this by to expect development are data We successful, would our test TAM. the we the this billion estimated of on we to half XXXX, $X.X believe

over XXXX. provide will now detail who Frank, and expect turn financial to results what in to the will call our to additional I relating

Frank Stokes

We in everyone. results afternoon, for and Thank strength while beyond. a delivered which we good make XXXX, believe leaves again position our on growth you, progress objectives, strong to XXXX in and continuing Derek, of financial us

The and volume quarter the increase revenues delivered over are In a which changes and quarter periods partially XXXX. for XX, increases revenue. estimated $X.X an effect test primarily full the the for fourth offset in by fourth XX% XXXX, in revenue a XXXX, revenue per variations XX% we year net for total XXXX, reflecting ended were over associated year revenue adjustments the year were in XXXX, million attributable to of year the increased variable tests million increase revenues, with test consideration, in of to related for delivered to higher unit compared XX, report full previous ended the total million, negative the positive XXXX. December $XXX increase the of net $X we Overall, of million $XX.X in December dermatologic delivered

Revenue in over to may and time. fluctuate from tests related adjustments quarter-to-quarter periods prior delivered

tests Our $XX.X adjusted XXXX. million $XXX for revenue, million delivered effects to and related of adjustments year was quarter periods in excluding full prior for the the revenue

driven $XXX count support for organization XXX XXXX million plans, XXXX. the size we on between million our those and XX, further increased increased As consistent on XXXX, In growth XXX December to by Derek earlier, December head execution order in XX, and plans. mentioned revenue, to anticipate XXXX, in of we from the total generating growth of $XXX

further growth our headcount For as XXXX, but not headcount, in extent we to adjustments Derek expect modest increases the including just XXXX. the commercial team, total same in discussed, to our

compared gross quarter during to XX.X% and year gross was XXXX. fourth margin in XXXX, was XX.X% quarter the XX.X% in margin to Our for XX.X% our the of full fourth compared the

believe periods and reports the the effects excludes XX.X% quarter our intangible profiles favorably related XX% asset to associated delivered the to amortization which XX.X% compares the prior and margin in peer period for test margin, We compared the same for for was to acquisitions, in gross adjusted our companies. revenue year of XX.X% XXXX. this of with and Our

for million cost December of travel, compensation operating the million ended XXXX, of prior increase XXXX. ended was to million full $XX.X remainder fees. XX, expenses, and the year the XXXX, XX, million marketing and the XX.X% attributable $XX.X Sales December for stock-based were $XX.X to year million with $XXX.X to total personnel for year to XX.X% including for in for $XXX.X the compared and associated were the the including sales sales the events or or salaries, higher training expense and Our full bonuses. XXXX. increased year $XX.X December ended by quarter and of increase costs, compared XX, year expenses The Approximately million primarily conference marketing is compared

by ended increases in to expenses XXXX, the associated with including December was General increased ended The expenses and bonuses. with and of primarily year December for increases. $XX.X compensation XX.X% costs, million attributable the general administrative XX, stock-based the primarily salaries, compared administrative higher to XXXX, other year personnel XX, increase or general and remainder

associated attributable personnel around activity. and sales, including XXXX. for compensation which Total compensation the additional by compared $X.X $XX.X million manage in among totaled study XX, cost year to expense, ended clinical and for expense fourth ended compared quarter stock-based and year to expense associated expenses --and noncash increase costs, million to primarily in R&D XXXX R&D studies is the by other XXXX our million clinical increased was XX, in to expense increases December $XX.X allocated increased full December million stock-based with the the $XX.X SG&A in XXXX, year headcount of for with increases

We stock-based continue future grow awards our to to headcount. as periods compensation we expect in continue granting

we all tax to benefit $X.X reduction allowance income valuation the compensation on of of of was XXXX. by net XXXX, attributable Substantially resulting of increase the XXXX. assets XX% For $X.X AltheaDx in Income deferred was for ended tax year expect XX, our and expense XXXX. tax XXXX, year million a the compared December to million to acquisition December for to XX, approximately over ended our million from $X.X XX% stock-based benefit April

valuation deferred portion acquisition resulting should into a be from of allowance determined we that the additional existing the consideration tax Specifically, took liabilities reduced. and our

$X.X share quarter Diluted per loss year share fourth compared fourth net to net million was compared of net diluted a Diluted to compared diluted $X.XX loss share Our loss loss the XXXX per of $X.XX the quarter of fourth $XX.X to year fourth $XX.X our share compared million in of the XXXX. full XXXX the And was We the per for XXXX. for loss of of a loss loss loss XXXX. of $X.XX quarter quarter $X.XX million for for for for XXXX net to was for $XX.X million per the was XXXX. full

negative the for million and EBITDA compared million respectively, $XX.X XXXX. and $X.X quarter million $XX.X negative Adjusted comparable fourth in full year and negative to were periods $XX.X XXXX million, negative for

million. XX to of $XXX months $XX compared securities of the XX $XX investing ended attributable December AltheaDx $XX.X of XXXX, during used and the the cash December in of the $XXX.X cash acquisition was ended million, for marketable investment XX, same used XX, operating period XXXX, in months XXXX. activities in For million to net was million the primarily cash portion the activities and Net million of purchases

our capital existing opportunistic expect to our expansive our priorities build that allocation These as acceleration the assessment of pipeline a develop lesser team we the of our evolution well supports franchises. to our R&D in priorities to our priority remain and areas to our efforts XXXX, tuck-in as include marketing consistent. tests, M&A of body In continued continued commercial and of evidence

operationalize XXXX, from and of cash, expect, to through of with Finally, at be tests we cash cash $XXX business had our we will anticipated marketable together December XXXX. our equivalents securities sales which XX, million, sufficient generation

I in financial range cash growth with XX%. XXXX. anticipate net the outlined we along adjusted wanted the gross our X-year disciplined for to flow operating where these to of year million range be to December achieving approach Combining continue gross remind to ending for expect Day XXXX, targets. continued an margins expectations in $XXX million revenue we September, the capital to We line for you XX, close, positive I XX% total of $XXX hosted Before top we in that with Investor margins, to strong the and allocation,

I'll back now the Derek. call to turn

Derek Maetzold

Frank. you, Thank

long-term with It focusing plans of our of innovative continued in we of with our finished our XXXX. successes a and drives well Operator, our in tests you Q&A. will on executing culture, in have aspect finishing ready another business, provide and your are This every we and remarks. are our excellence our concludes are that is the believe for Thank us we people-first relentless Castle. this in people-first Again, XXXX. our we in employees. XXXX, with against interest year performance momentum offering combined culture, pleased with patients, We for now customers strong that pursuit our

Operator

[Operator Sung from Ji comes question first Scotiabank. Instructions] Nam The with

Sung Ji Nam

for kind going just to quarter? maybe about be XXXX you Could Frank. of if -- your typical for should the So seasonality seasonality, think your one -- guidance, talk how first pacing, there's quarterly about we the

Frank Stokes

Suji. Yes. Sure,

I of relates seasonality think a with diagnoses. the that have what pattern 'XX melanoma is we pre-COVID that of it we to to returned as end of kind saw

kind that So we're saw I think same through assuming XXXX. into progression XXXX that of we

second increased expect typical and from identifying practice the would activity physician So to again quarter days, the year. patients more we this in see more lesions

Sung Ji Nam

you just figure then Just what's changed. SCC out different trying what's kind reimbursement, clarify to from could the And before? just of on

Derek Maetzold

SCC? On

Sung Ji Nam

Yes, want Or I -- just in to I -- something think

Frank Stokes

No. Yes.

the have is way guidance continued there, assumptions Sanjay. changes but We through we said, -- through same year anticipate where that's the something through If think assumes we gapfill Derek coverage. other, that, we we'll are we're as one adjust, I And or the the process. to assuming as that rate -- durable our year. go there, going

Operator

Stephens. with Kariko Mason from comes question next The

Unidentified Analyst

closure there? savings those are San the facility. those the think P&L? what Mason. How for do about we of on guess rate those of Althea cost of hitting majority full show I of Diego the going the savings? What to on Lab the should you up in savings quarter anticipate magnitude And Jacob is This run just first

Derek Maetzold

Yes, thanks.

think also that of we the staffing have we operational see might did of see the are, to in the the year. increases to But primary don't sufficient we estate. reduced increases Southern had end believe course, we'll Phoenix have I complete level the had And close remained have or capacity we that that we benefits primary at in California. that real that

winding expectation there. through that see have So that think I don't San benefit we we would QX, probably is not I my But the some think full -- I QX, going it still There's on. fully Diego. for down of

relates Pittsburgh, Now in as expect be to it facility the second -- quarter. that we to in

We expect will the to to quarters for the be COGS benefit of couple probably complete Pittsburgh build-out there, see full take the it a and efficiency the transition. to and standpoint us from and

we'll reported side the here amount significant a COGS rest be a we 'XX. in quarter 'XX of second, of period the side little a are that investments, through get So we the us transition on through as and forward on help really move will into think we But third those and done. as bit COGS

Unidentified Analyst

if a call, on sorry the test? the this you're we've but Just future, any SCC this been thinking of what's how update in a perspective? juggling ADLT earlier line you pursuing on on about updates for then And on touched time opportunity latest status kind the

Frank Stokes

of process -- be believe DecisionDx-SCC status commenting not set that long, or however, upon we take or the we place. the So for that short when may forth are statutes. based We qualify can that in upon would do because timing ADLT criteria not

So to as mark. the SCC. that. upside model all to of assumes And I because happens modified I would is Frank a as have changed price would or earlier or $XX.XX be us ADLT XXXX, that represent monologue, for that that his during mentioned It would for question put

Operator

Thomas Our Lake question Flaten with comes Street. next from

Thomas Flaten

code is you're Derek, decision there you that? on Or are there? recourse stuck Genetic CPT about the with? is for how guys ID switch, thinking Or any a this you

Derek Maetzold

We're end. in our exploring actions opportunities and

have first towards earnings. end quarter first or So quarter we'll ratio the probably the of more

Thomas Flaten

timing is something also them -- curiosity, all feature that SCC SEC it out selling those doctors having point has question And to of that orders a melanoma there some melanoma. there? at of of melanoma versus of is have product DX or ordered XX% just a unique previously? pushed something there mentioned unique then you that to that or Is the Is adopted

Derek Maetzold

an question, That's Thomas. excellent

they're appropriate features. be in I to think a carcinomas melanomas high-risk going of dermatologist, test medical for will for cell see squamous that with general testing melanoma

have necessarily here. don't here differences to you I numbers give While exact the

We a of also trained Mo surgery. in have group are that dermatologists

are surgeons most a perform So as of Surgery on invasive surgeons good who Mo a subspecialty Mo dermatology. don't techniques There number melanoma. of

be swimmer surgical melanoma. at of because are that or those are so factor some not whom in of Mo risk doing with necessarily expect procedures surgical least they delta, excisions would would a And high or carcinoma, it never I who many patients people XXX% with the preferentially to on performing physicians more, some but seeing surgeons invasive be of have cell

part differentiation the that's there. of So

Operator

The next question comes from Kyle Mikson with Canaccord.

Unidentified Analyst

This for on is Kyle [Alex Vukasin] Mikson.

could I So would curious Cipher contribution have or was be, I to a start meaningful comment place for good on XXXX assumptions TC whether a a about just your guidance? your guess a genetic to

Derek Maetzold

have are about certainly a perspective. We high-growth those in XXXX to and tissue our of But we side around XXXX terms for sure or in decade back of 'XX material guidance profitable, an middle step sort to lift if a about conversations significant continue beyond. the Those from that acquisitions, revenue company for 'XX and of those really this in creating we weren't two in making both the revenue ID. be

real you of so 'XX in beyond. those acquisitions. will guess, goal guess, what And call meaningful we're XXXX, material impact until those from XXXX, and a receive, do but products was That expecting, would we not we revenue expect and the I probably combined I

hasn't from that a perspective. thesis changed So

Unidentified Analyst

code previous the roughly you code. range this was appreciate IDgenetix the feel compared stated And prepared remarks. bit that I this for previously. new the Medicare $XX the new you ways in $XXX a for the fully But I you in if touch CPT you doesn't test was I on what range, that could curious little in want to on to code your if wondering a apologies quarter, which just elaborate believe, that. that elaborate on if could offers you on just roughly

Derek Maetzold

A sure. little bit

So gene the events, pharmacogenomic that things test sequencing -- pharmacogenomic panel for or is sort ours, test tests difference cover is example. that, might events, a of and disease Alzheimer's maybe tests even includes cardiovascular generic mental for our main that's multi-gene for that health, like

do interactions are which interactions variety was we and when of Does not was upon is whole what that test lifestyle a factors indications of as description that gene it then well. multipanel Those both integrated However, generic know that add tool a were clarity? incorporated in drug clearly IDgenetix built, covered drug-drug combination other initially components built this using an covers types. annotation that code, of and algorithm

Operator

with The comes next Puneet SVB. question from Souda

Unidentified Analyst

I bit on dig on of the for Puneet. have kind a to the guide. little You question wanted Michael about back

Cipher driven other growth So but the is guide a contributor, melanoma I maybe how was wondering, like core of really the of versus you mentioned by much SCC. and tests in huge tissue the maybe some not

Frank Stokes

We most will of by dermatology year. -- or as a believe we've significant of our growth the the be growth driven franchise said, this portion we

And well. to squamous to penetration cell the in grow market and expect melanoma so we as continue

tests -- including expectations the we volumes the both for through yes, So year. for higher guide

Unidentified Analyst

any you dedicated should wondering there that have also to productive you online have half fully second sales in SCL I GTX. franchise LTD was you this force of I expect think, if second be, said? sort coming the quarter of And the with the I going year. the And was in perhaps for you meaningful ramps growth is now wondering the

Derek Maetzold

terms in of personnel I'm right? volume, In of or terms assuming,

Unidentified Analyst

Volume primarily, yes.

Derek Maetzold

Yes.

that expectation. late only I focused in, reestablished be of guess, would XXXX. September that So our group We dermatopathology

that sales teams in our believe training about we So we the productivity full get their do after in until months X don't field.

the obviously of see XQ hit we really We the are impact the expect in should seeing but quarter XXXX, an running ground first would and late an that we So fall. beginning now. impact to

of those a that being made growth investments should last acceleration year. and So answer see yes, is late we with continued growth short

Operator

The Massaro next Mark BTIG. comes from with question

Unidentified Analyst

This on for is Mark. Vivian

what pull growth XXXX, reach remind So to which look of Can as us by to hoping X% margin XX% far your off. as far to too doesn't levers you're you just target? that target remaining

Frank Stokes

Sure.

laboratories So said, see expect the as the year we and of of benefits of through that into our time. this rationalization we to period

course, in we that So Southern benefit for there. the efficiencies Pittsburgh, efficiency. think were our capacity we in of of have case strained Phoenix great Lab California, we And limits in -- which, the

So appropriately levers are those labs, not to absorbs cost and the primary drive converting those reimbursed of tests currently which, rationalizing to scale, continuing paid appropriately and of are continued number or fixed the reimbursed. that course, being

Unidentified Analyst

a you us data just unlock And you're here? quick reimbursement Could to how expecting MPI follow-up. publication of and potentially the refresh on any the that

Derek Maetzold

Sure.

belief review the clearance be expectation we're NCI. a should or and from acceptance timing of It's least online based review our the this cycle first of journal's and of So of upon undergoing speed and is in -- control that don't having in the timing. hope publication seeing or -- review publication being trends current process half at that of that our and published standpoint submitted obviously year, that the comments. of that, We

be a timing is by reasonable at I that the assumption. least end the of So would would it, of think June,

terms of have In abstract that with we the most some been what customers preliminary means impact-wise, of XXXX, discussing our data. of for

as to being population as the the a is program. is peer-viewed That's of publication there this nearly as proven NCIC having our prospective detail through up in effective through you customers test large-scale out awareness walk So can reported study expect. not as by among value of real-world

of terms large ratification expect accelerating unselected of in patient just having of our would the we on hit this So in of the awareness terms physician confirmed another penetration care really results to followed have receive are value test, not but the they're standpoint patients in risk clinically. then clinically are the that not also or tested compared DecisionDx-Melanoma. of with to patient Presumably, do survival benefit those population, impacting test experiencing terms who patients when our in

also more kind prepublication our really a managers, which use we study likelihood through is who than it I read and challenge have surgical and understand a reducing I similar the that Separately, ratification It appreciate risk have biopsy should of would this in actual all clinician payers expect hear procedures, you when can laboratory of and that alone. what the from of to in and lower you impactful, is benefit reduce I wrestle recurrence hear you like detail. the commercial outcome terms fine does. the we terms risk would So if to data of that your overtreatment in full entailed in patients the of looks think, be a what and unnecessary have frequency terms test of staging

all that. pay versus death And improved does for patient are exactly that But actual actually show you outcomes, don't. So appreciate that. test me, your outcomes I NCR can article Derek, I that if

expect hope study occur test XXXX. met over that But I the in would policy remainder see commercial a coverage that's Now as asking right. and an automatic right July That's us going see would we been XXXX, wouldn't been being time, litmus to to coverage but that again, this that I in being as change you're of becomes landmark of of go turn through time. that We've now. a a for period wouldn't dime say, actually XXXX to I significant out payer force

Operator

question next Schultz Catherine Baird. Our with comes from

Unidentified Analyst

payer and This the just a if is [Tom] on status build towards NCCN of potential specifically Catherine. Wondering for give on inclusion progress 'XX? just guideline any throughout that last could us maybe kind commercial expectations for Dx-Melanoma? update just point And on here, you

Frank Stokes

to continues A over of couple commercial Sure. there. challenging comments payers. to be It push

to will year by think nice evidence, wins But in you begin other XXXX. factors. know, not be to that before, really, driven I think necessarily but increase any take the in the have steady slow implemented they going it by As I swayed are that's would progress. did rate see We are as step-wise NCCN some said but there. think to continue in be an of inclusion And we I to kind positive

Derek Maetzold

each guess, year-end, time your the timing, had the of has as or Now NCC January year, the a in-person and usually meeting, group period at in early historically, I of you July question published or second late their terms December, of that melanoma are outcome and significant had in July November. time period Tom, is that there,

would I cycle. of get expect until XXXX date, mid-summer of for updates the publication So year-end which see to reflects their that material any we not to meeting remainder sort

Unidentified Analyst

the the before, touched just pacing forward the gross we But here. sort overall you're margin tests, we how and I of the pacing getting for curious tech this in rationalization these lab the from then just heard comments gross should but contribution thinking in the And year. contribution? some how for about margin of think about about on clients on the

Frank Stokes

straight as pay paid stepwise that drops that converting will think those a And the because progressive impact zero of being efficiencies, appears trend, of tests to a with trends, nothing that in to sort to I through. be other big course, there. be addition has

that. in So We we'll pace. continue to see methodical but time, slower right see that the would over to direction a move expect here

Operator

Those are all the we questions today. for have

remarks. for concluding the I'll back So turn to now Derek call

Derek Maetzold

year full joining again XXXX and This us continued fourth in Castle concludes for for earnings and quarter call. Thank our interest Biosciences. today your you

Operator

you now us our everyone, you, may and for lines. your This disconnect call, Thank today. joining concludes

Castle Biosciences (CSTL) 28 Feb 232022 Q4 Earnings call transcript