Clearwater Analytics Holdings, Inc. (CWAN) stock surged 8.95% in after-hours trading on Wednesday, following the company's impressive fourth quarter 2024 results and optimistic outlook for 2025.

The financial technology company reported record quarterly revenue of $126.5 million, up 27.7% year-over-year, surpassing analysts' expectations. Clearwater's non-GAAP diluted earnings per share of $0.13 also exceeded estimates, marking a 30% increase from the same period last year.

Driving Clearwater's robust performance was strong demand for its investment management solutions, as reflected in the 25.3% year-over-year growth in annualized recurring revenue (ARR) to $474.9 million. The company also achieved a record net revenue retention rate of 116%, highlighting its ability to expand within its existing client base.

Looking ahead, Clearwater provided an optimistic outlook for 2025, forecasting revenue of $535.5 million to $542 million, representing a 19% to 20% year-over-year growth. The company expects adjusted EBITDA margins to expand to around 34% for the full year, underscoring its profitability improvements.

Investors were further enthused by Clearwater's recent announcement of its intent to acquire Enfusion, Inc. for $1.5 billion, expanding its platform with front-to-back capabilities for the investment management industry.