Proto Labs Inc. (PRLB), a leading digital manufacturing service provider, saw its shares surge 6.78% in pre-market trading on Friday, following the release of its fourth-quarter 2024 financial results and first-quarter 2025 outlook.

In the fourth quarter, Proto Labs reported revenue of $121.8 million, a 2.6% decrease compared to the same period in 2023. However, the company's non-GAAP net income was $9.4 million, or $0.38 per diluted share, beating analysts' estimates of $0.34 per share. The company's strong performance was driven by continued growth in its Protolabs Network, which accounted for $26.5 million in revenue, up 17.9% year-over-year.

For the full year 2024, Proto Labs reported revenue of $500.9 million, a 0.6% decrease from 2023, but non-GAAP net income of $41.2 million, or $1.63 per diluted share, up from $1.59 per share in the previous year. The company's gross margin also improved to 45.2% of revenue, compared to 44.7% in 2023.

Looking ahead to the first quarter of 2025, Proto Labs expects to generate revenue between $120 million and $128 million, and non-GAAP diluted net income per share between $0.26 and $0.34. The company's outlook and strong fourth-quarter results seem to have boosted investor confidence, driving the pre-market surge in its stock price.