Shares of Clarivate Plc (NYSE:CLVT) surged 5.18% in Wednesday's trading session, as the information services company reported better-than-expected fourth quarter 2024 earnings and announced a new $500 million share repurchase program.

For the quarter ended December 31, 2024, Clarivate reported adjusted earnings per share of $0.21, beating Wall Street's expectations of $0.20. Revenue came in at $663 million, also exceeding estimates of $660.12 million. The company cited growth in subscription revenues as a key driver.

While overall revenues declined 3% year-over-year, Clarivate made progress in its transition towards more predictable, recurring revenue streams. Subscription revenues grew 0.1% organically, offsetting declines in transactional sales.

Looking ahead, Clarivate forecast 2025 recurring organic revenue growth in the range of -1% to 1%. The company expects adjusted EBITDA of $940 million to $1 billion, as it implements cost-cutting measures and capital allocation strategies.

In a bid to boost shareholder returns, Clarivate announced a new $500 million share repurchase program through 2026. The company also prepaid $198 million of debt in 2024 as part of its balanced capital allocation strategy.

However, the earnings release also revealed that Clarivate is initiating a review of strategic alternatives, including potential divestitures of business units or an entire segment. CEO Matti Shem Tov cited this move as part of the company's efforts to "reinvigorate" growth and build for the future.