Shares of energy drink company Celsius Holdings (CELH 2.12%) blasted 63.6% higher during February, according to data provided by S&P Global Market Intelligence. The stock had already climbed 36% higher by Feb. 28. But on Feb. 29, the stock further soared after the company reported its financial results for the fourth quarter of 2023.

Anticipation was clearly building for Celsius throughout the month. And for good reason: Third-party data suggested that the company was having yet another monster quarter of growth.

The third-party data proved to be good. For 2023, Celsius grew its revenue by 102% year over year to more than $1.3 billion. This included 95% top-line growth in Q4. In short, consumers are thirsty for Celsius.

The bottom line looks good for Celsius as well. In 2023, the company had record operating income of $266 million. This represented a very healthy operating margin of 20%.

With revenue growing at a triple-digit pace and impressive profits, the market was rightly excited about Celsius stock last month.

Consumers seem to know what they want

Celsius is selling more product than ever before because its products are more broadly available than ever before. According to CEO John Fieldly, in 2023, the company "achieved nearly complete distribution coverage in the United States."

With its rapid distribution gains, one would think that Celsius would be spending exorbitantly on marketing to gain brand recognition. But the company is doing better than one would expect here as well. It had sales and marketing expenses of just $80 million in Q4, which was surprisingly down 11% from the prior-year period.

This is another datapoint suggesting strong consumer demand for Celsius. And it helped the company cap off its massively profitable year.

What's next for Celsius?

Trading at 15 times its trailing sales, Celsius' valuation is pricey and it indicates that the market expects robust ongoing top-line growth. But where is growth going to come from if it's already achieved full U.S. distribution?

Management supplied three potential avenues for ongoing growth in 2024. First, it can increase how many products it has at existing points of distribution. Second, it can increase distribution channels such as vending machines and cafeterias. And third, it can grow in international markets.

To the latter opportunity, nearly 96% of Celsius' 2023 sales came from North America, most of which was in U.S. markets. However, it's already started looking outside of the U.S. for growth. Management specifically called out sales in Canada exceeding its expectations during its first two months of distribution north of the border.

Therefore, the stock may not be cheap. But Celsius' growth has been extraordinary and it still is looking toward untapped opportunities. In closing, I'd be quite encouraged if I were a Celsius shareholder.