Starling Oncology shares gained after the company raised its sales outlook.

The stock climbed 27% to $6.36 in pre-market trading Friday. Starling started trading publicly earlier this week.

The community cancer care company said it now expects annual revenue to be $650 million to $670 million, up from prior guidance of $630 million to $650 million. It also raised its gross profit outlook.

The raise came as Starling said second-quarter revenue jumped 35% to $161.3 million. That was ahead of Wall Street's estimate of $155.3 million.

The company narrowed its loss to $9.8 million, or 8 cents a share, from $17 million, or 15 cents a share. Analysts polled by FactSet were expecting a loss of 6 cents a share.

Starling signed its first delegated contracts outside of Florida, in Nevada and Oregon, and reached an exclusivity agreement with one of its largest partners across California.

Those deals are expected to drive capitated revenue growth going forward, Chief Executive Daniel Virnich said.