Affirm shares jumped 16% in premarket trading on Friday, after the buy now, pay later lender posted a surprise quarterly profit on the back of a strong holiday shopping season and forecast an upbeat annual revenue.

Affirm shares jumped 20% on better-than-expected revenues and a surprise profit during a strong holiday shopping season. Gross merchandise volume, an important metric signaling the total value of transactions,

Key Takeaways Affirm Holdings posted an unexpected quarterly profit as the provider of buy now, pay later loans saw a jump in its customer base.Revenue, active customer base, and gross merchandise volume all came in higher than forecasts.

(Reuters) -Affirm shares jumped 22.8% on Friday, as a strong holiday shopping season helped the buy now, pay later lender post a surprise quarterly profit and forecast upbeat annual revenue. More consumers used its BNPL services to take advantage of heavy discounts by retailers on everything from apparel to electronics to lure budget-conscious shoppers during the holiday season.