Shares of Affirm Holdings surged Friday after the "buy now, pay later" company raised its revenue forecast for fiscal 2022.

Affirm (ticker: AFRM) said it expects revenue for the fiscal year of $1.33 billion to $1.34 billion, higher than its prior estimates of $1.31 billion. Analysts surveyed by FactSet expect revenue of $1.33 billion.

The company said it expects gross merchandise value of $15 billion to $15.14 billion in fiscal 2022, higher than previous expectations of about $14.8 billion.

The stock soared 29.2% to $23.31 in premarket trading Friday. It closed with a gain of more than 23% on Thursday. Affirm shares have fallen 82% year to date.

For the fiscal fourth quarter, Affirm said it expects revenue of $345 million to $355 million; analysts were looking for $352 million.

Affirm said revenue in the fiscal third quarter rose 54% from a year earlier to $354.8 million, and higher than estimates of $344.3 million. The company reported a loss of 19 cents a share, narrower than the year-earlier loss of $1.23 a share, and narrower than Wall Street expectations for a loss of 46 cents.

Gross merchandise volume in the third quarter jumped 73% to $3.9 billion.

"Our strong performance demonstrates our ability to drive growth with attractive unit economics, despite volatile market conditions," said Chief Financial Officer Michael Linford in a statement.

On the earnings conference call, Chief Executive Max Levchin noted how Affirm has posted profits on an adjusted operating income basis in three of the last five quarters.

"Our plan is to achieve a sustained profitability run rate on an adjusted basis by the end of the next fiscal year. That is to say, we expect to generate revenue that consistently exceeds our adjusted operating expense starting July 1, 2023," Levchin said.

Affirm also announced a multi-year extension of its partnership with Shopify in the U.S.

Mizuho analysts said Affirm's "very strong" third-quarter results "should offer a big sigh of relief." They maintained their Buy rating on the stock and $79 price target.

Ahead of the earnings, J.P. Morgan initiated coverage on the stock with a Neutral rating and a price target of $30.

"Affirm is a commerce disruptor, driving the convergence of retail, technology and e-commerce through its consumer marketplace app and innovative financing products," J.P. Morgan analysts wrote in a research note.