Dolby Laboratories (DLB) stock surged 12.52% in the pre-market trading session on Wednesday, following the release of its strong fiscal fourth-quarter 2024 results and an optimistic outlook for the coming year.

The audio technology company reported a 5% year-over-year increase in revenue to $305 million, driven by robust growth in its flagship Dolby Atmos and Dolby Vision technologies. Non-GAAP earnings per share jumped 25% to $0.81, benefiting from higher gross margins and a lower tax rate. Additionally, Dolby raised its quarterly dividend by 10% to $0.33 per share, reflecting confidence in its financial position.

Looking ahead, Dolby expects revenue from Dolby Atmos, Dolby Vision, and imaging patents to grow around 15% in fiscal 2025. The company's acquisition of THEO is expected to accelerate growth in the emerging Dolby.io business, broadening its customer base and product portfolio. Furthermore, Dolby has expanded its automotive partnerships, more than doubling its OEM partners for Dolby Atmos to over 20, capitalizing on the growing demand for enhanced in-car entertainment experiences.