Carvana's quarterly profit climbed as it sold nearly 40% more vehicles than it did a year earlier, a reflection of hot demand for used vehicles while new cars remain pricey.

The online used-car retailer on Wednesday reported a third-quarter profit of $289 million, or 39 cents a share, compared with $151 million, or 21 cents a share, a year earlier. Analysts polled by FactSet expected 44 cents.

Revenue climbed 42% to $8.04 billion. Analysts polled by FactSet expected $7.71 billion.

The company said it sold 217,385 vehicles in the third quarter, up 39% from the prior year.

Shares surged 7.16% to $63.28 in overnight trading.

Chief Executive Ernie Garcia III said the company has doubled its customers in the last two years while continuing to lead the industry in unit economics.

In a letter to shareholders, Carvana executives said the company's growth compares with a broader industry that was approximately flat in the quarter from a year earlier.

"This makes clear that our growth is coming from market share gains as customers continue to migrate to Carvana because of the experience we offer, the selection we provide, and the value we deliver," they said in the letter.

The company in the fourth quarter expects a sequential increase in vehicles sold. It also said it now expects full-year adjusted earnings before interest, taxes, depreciation and amortization at the higher end of its previously issued range of $2.7 billion to $3 billion.