Castle Biosciences, Inc. (CSTL) experienced a significant stock price drop of 5.20% on November 5, 2024, despite reporting impressive third-quarter financial results. The company's stock fell to $XX.XX, despite the following positive highlights from its Q3 2024 earnings report:

- Revenue increased by 39% year-over-year to $85.8 million, surpassing analysts' expectations. - The company achieved profitability, with net income of $2.3 million, compared to a net loss of $6.9 million in Q3 2023. - Adjusted EBITDA improved by $15.1 million from the previous year's third quarter, reaching $21.6 million. - Castle Biosciences raised its full-year 2024 revenue guidance to $320 million to $330 million, reflecting 45% to 50% year-over-year growth.

Despite these positive developments, the stock price plummeted, potentially due to the following factors mentioned in the earnings call highlights:

- The company experienced higher operational expenses, including a rise in general and administrative expenses, sales and marketing expenses, and cost of sales expenses. - Investors may have concerns about the reimbursement landscape for Castle Biosciences' pharmacogenomic test, IDgenetix, as the company faces inconsistent payments from commercial insurers. - The company anticipates potential volume impacts in the fourth quarter due to recent hurricanes affecting dermatology practices in certain regions.