Faro Technologies Inc. (NASDAQ: FARO) stock soared 17.25% in pre-market trading on Tuesday, following the company's impressive fourth-quarter 2024 financial results and positive outlook driven by strategic growth initiatives.

The 3D metrology and digital reality capture solutions provider reported better-than-expected Q4 revenue of $93.5 million, exceeding guidance range. Non-GAAP gross margin expanded by over 600 basis points year-over-year to 57.4%, reaching the high end of guidance. Faro generated non-GAAP earnings per share of $0.50, representing the seventh consecutive quarter of exceeding expectations.

Key highlights from the earnings release and call include:

• Faro launched several new products, including the FaroArm Quantum X and the Focus Premium laser scanner portfolio, enhancing its core product offerings.
• The company entered a multi-year collaboration and distribution agreement with Topcon, a worldwide leader in the digital reality space, expected to generate significant revenue at full ramp.
• Faro signed a multi-year OEM partnership agreement with a leading metrology company, enabling the partner to white label certain Faro products, expected to launch in Q4 2025.
• Faro unveiled the FARO Leap ST handheld scanner, marking its entry into a new $800 million addressable market category.

Despite ongoing macroeconomic challenges, Faro expressed confidence in its strategic direction and ability to drive substantial value for shareholders through organic growth initiatives and operational excellence. The company remains optimistic about outpacing market growth in the coming years, backed by its strong financial performance and strategic partnerships.