Shares of Castle Biosciences, Inc. (NASDAQ: CSTL) surged 10.72% on November 6, 2024, following the company's strong third-quarter financial performance and positive clinical study results for its DecisionDx-Melanoma test.

For the third quarter, Castle Biosciences reported revenue of $85.8 million, up 40% year-over-year, surpassing analyst estimates. The company achieved profitability, with net income of $2.27 million and earnings per share of $0.082, exceeding expectations. Bolstered by its growth momentum, Castle Biosciences raised its full-year 2024 revenue guidance to $320-$330 million.

Moreover, Castle Biosciences presented updated findings from its prospective DECIDE study at the Dermato-Onco2024 conference. The data showed that integrating DecisionDx-Melanoma test results into clinical decision-making led to a significant 25% reduction in unnecessary sentinel lymph node biopsy (SLNB) procedures. Notably, no patients with a low predicted risk of lymph node positivity (less than 5%) who opted for SLNB had a positive node, supporting the test's ability to safely identify patients who can avoid the invasive procedure.