Criteo SA's (CRTO) stock surged over 21% in pre-market trading on Wednesday, following the company's record fourth quarter 2024 results and an optimistic outlook for 2025.

The commerce media company reported stellar financial performance for Q4 2024, with revenue of $553 million, up 21% quarter-over-quarter. Adjusted EBITDA increased 4% year-over-year to $144 million, while adjusted diluted EPS grew 15% to $1.75, beating analysts' estimates.

Key highlights driving Criteo's strong Q4 and full-year 2024 performance include:

• Retail Media revenue surged 20% in Q4 and 24% for the full year, fueled by strength in onsite advertising, new client wins, and growing network effects.
• Contribution ex-TAC rose 6% in Q4 and 10% for the year, reflecting effective cost management and robust performance across both Retail Media and Performance Media segments.
• Criteo deployed a record $225 million for share repurchases in 2024 and increased its remaining buyback authorization to $200 million.

For 2025, Criteo is targeting mid-single-digit growth in Contribution ex-TAC at constant currency and an Adjusted EBITDA margin of approximately 33-34% of Contribution ex-TAC. The company's newly appointed CEO, Michael Komasinski, expressed confidence in Criteo's ability to drive AI-driven innovation and future growth.

Analysts view the record Q4 performance, substantial share buybacks, and positive 2025 guidance as key catalysts behind Criteo's significant pre-market surge on Wednesday. The company's focus on expanding its Commerce Media Platform and leveraging cutting-edge technologies like generative AI and autonomous driving seems to have resonated well with investors.