Certara Inc. (CERT) witnessed a significant pre-market surge of 7.87% on Thursday, driven by its impressive fourth-quarter results and robust growth prospects fueled by strategic acquisitions and AI integration.

The company reported strong financial performance for the fourth quarter and full year 2024, with total revenue reaching $385.1 million, representing a 9% year-over-year increase. Certara's fourth-quarter bookings grew by 22%, driven by a 38% increase in software bookings and a 12% rise in services bookings, reflecting the company's ability to capitalize on the growing demand for its products and services.

One of the key highlights was the successful integration of the recently acquired Chemaxon, which contributed $6.6 million to fourth-quarter revenue. Chemaxon's expertise in chemical property insights and drug discovery has opened new opportunities for Certara, enabling the company to expand its presence in the early stages of the drug development pipeline.

Furthermore, Certara's focus on integrating artificial intelligence (AI) into its software offerings has positioned the company at the forefront of technological advancements in the biopharmaceutical industry. The company's CoAuthor regulatory writing product, leveraging AI capabilities, has gained traction with multiple paying customers and a strong pipeline. Certara plans to continue enhancing CoAuthor's functionality and expanding its AI-driven solutions, unlocking significant growth potential.

With a strong customer base of over 2,400 life sciences companies and substantial growth in high-value contracts, Certara's model-informed drug development (MIDD) approach continues to gain momentum. The company's strategic investments in research and development, product integration, and commercialization efforts have laid the foundation for sustained growth and increased market share.