This story is developing. Please check back for further GoPro and Microsoft updates.

Shares in GoPro jumped more than 4 percent in after-hours trading after the announcement of a patent licensing deal between the company and Microsoft.

"This agreement with GoPro shows the incredible breadth of technology sharing enabled through patent transactions," Nick Psyhogeos, president of Microsoft Technology Licensing, said in a statement. "Microsoft's licensing of personal wearable technologies is seeing strong demand as we partner with companies from all industries to optimize solutions for their customers around the globe."

The deal is a new "collaborative patent licensing agreement" for "certain file storage and other system technologies," according to Microsoft, which said in its announcement that the terms of the agreement are confidential.

GoPro's stock is down more than 40 percent year-to-date. It reported fourth-quarter earnings and revenue earlier this week that came in below Wall Street's expectations, and it guided lower than analysts had forecast.

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