Twitter stock soared in Thursday after-hours trading as the company confirmed that it had reached a deal with Google, and reported quarterly earnings and revenue that beat analysts' expectations.
The social media company posted fourth-quarter adjusted earnings per share of 12 cents, compared with 2 cents per share a year earlier. Revenue nearly doubled to $479 million from $243 million.
The stock fell in after-hours trading right after the earnings announcement, but rebounded to a more than 10 percent gain.
Analysts had expected Twitter to report adjusted earnings of about 6 cents per share on $453 million in revenue, according to a consensus estimate from Thomson Reuters.
"We closed out the year with our business advancing at a great pace. Revenue growth accelerated again for the full year, and we had record quarterly profits on an adjusted EBITDA basis," Dick Costolo, Twitter's CEO, said in the company's earnings release.
"In addition, the trend thus far in Q1 leads us to believe that the absolute number of net users added in Q1 will be similar to what we saw during the first three quarters of 2014," he said.
The company said it saw 288 million monthly active users (MAUs) for the fourth quarter, which represented a 20 percent year-over-year increase, but only 4 million net adds since the prior quarter. Wall Street had expected 292 million MAUs for the fourth-quarter.
On the company's earnings call, Costolo blamed quarter-specific issues for the weaker than expected number, pointing to seasonality and Apple's iOS 8 release.
Twitter CFO Anthony Noto elaborated on this, saying the mobile operating system roll out cost the company about 4 million MAUs, by impacting both third-party polling MAUs and Twitter owned-and-operated MAUs.
Both Noto and Costolo emphasized that they expect Q1 MAUs returning to the level of absolute net adds seen in the first three quarters of 2014.