VeriSign (VRSN 8.43%) shares took off Friday morning after the company released first-quarter earnings and declared a dividend for the first time. Its solid results also allowed the company to raise revenue guidance for the full year.Investors jumped into what has been one of the big stock market winners so far this year. Shares jumped 9.3% higher as of 11:35 a.m. ET, giving the stock a gain of 33% year to date.VeriSign is a big Warren Buffett holdingThe initiation of a quarterly cash dividend surely made s ...

VERISIGN* Q1 2025 Earnings Conference Call April 24, 2025 Safe Harbor Disclosure Statements in this presentation other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding (i) Q1 2025 renewal rate expectations, (ii) Domain Name Base change expectations, (iii) our full year 2025 financial guidan ...

VeriSign, Inc. (NASDAQ:VRSN) Q1 2025 Earnings Conference Call April 24, 2025 4:30 PM ET Company Participants David Atchley - VP, IR & Corporate Treasurer James Bidzos - Executive Chairman, President & CEO George Kilguss - EVP & CFO John Calys - SVP, Global Controller and Chief Accounting Officer Conference Call Participants Ygal Arounian - Citi Rob Oliver - Baird Operator Good day, everyone. Welcome to VeriSign, Inc.'s first quarter 2025 earnings call. Today's conference is being recorded. Recording of this ...

Financial Performance - Revenues for the three months ended March 31, 2025, were $402.3 million, representing a 5% increase compared to $384.3 million in the same period of 2024[46] - Operating income for the same period was $271.2 million, also a 5% increase from $258.0 million in the prior year[46] - Cash flows from operating activities were $291.3 million for the three months ended March 31, 2025, compared to $257.3 million in the same period of 2024[46] - Revenues from the U.S. increased by 4% to $266.1 million, while revenues from EMEA rose by 11% to $67.0 million[55] - Net cash provided by operating activities increased to $291.3 million for the three months ended March 31, 2025, compared to $257.3 million in the same period last year, driven by higher cash received from customers[69] Domain Registrations - The number of .com and .net registrations decreased by 1.5% to 169.8 million as of March 31, 2025, compared to 172.5 million a year earlier[53] - New domain name registrations for .com and .net increased to 10.1 million during the three months ended March 31, 2025, up from 9.5 million in the same period of 2024[46] - The renewal rate for .com and .net domains was 74.0% for Q4 2024, an increase from 73.2% in Q4 2023[46] - The annual registry-level wholesale fee for .com domain registrations increased from $9.59 to $10.26 effective September 1, 2024[52] Expenses and Income - Selling, general and administrative expenses increased by 8% to $55.7 million for the three months ended March 31, 2025, compared to $51.5 million in the same period last year, primarily due to higher compensation and benefits expenses[60] - Interest expense increased slightly due to interest accrued on the 2032 Notes issued on March 11, 2025[61] - Non-operating income decreased due to lower interest income from reduced investments in debt securities and slightly lower interest rates[62] - Income tax expense was $59.1 million with an effective tax rate of 23% for the three months ended March 31, 2025, compared to $59.9 million and 24% in the same period last year[63] Cash and Shareholder Returns - Cash and cash equivalents increased to $575.4 million as of March 31, 2025, from $206.7 million as of December 31, 2024, while total liquidity reached $648.5 million[64] - The company repurchased 1.0 million shares of common stock for $229.9 million during the three months ended March 31, 2025[51] - The company repurchased 1.0 million shares for $229.9 million during the three months ended March 31, 2025, with approximately $792.7 million remaining for future repurchases[65] - A cash dividend of $0.77 per share was declared on March 11, 2025, payable on May 28, 2025[51] - A cash dividend of $0.77 per share was declared, payable on May 28, 2025, to stockholders of record as of May 19, 2025[67] Financing Activities - The company issued $500.0 million of 5.25% senior notes due June 1, 2032, and used the proceeds to repay existing senior notes[66] - Net cash used in financing activities decreased to $239.9 million for the three months ended March 31, 2025, compared to $261.6 million in the same period last year, primarily due to proceeds from the issuance of the 2032 Notes[74]

RESTON, VA - April 24, 2025 - VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the first quarter of 2025. VeriSign, Inc. and its subsidiaries ("Verisign") reported revenue of $402 million for the first quarter of 2025, up 4.7 percent from the same quarter in 2024. Operating income was $271 million for the first quarter of 2025, compared to $259 million for the same quarter of 2024. Verisign reported n ...

Tomas Riba is an economist and former Chief Financial Officer (CFO). He invests in high-quality companies that can compound their cash flow over the long term.His journey in financial markets started at a young age, and he has been investing since 2007. Following his studies in economics, Tomas initially built his career in accounting.After taking on the role of CFO for a holding company operating in the pharma, medical device, textile, food, and real estate industries, he pursued an academic career. Curren ...

VeriSign, Inc. (NASDAQ: VRSN ) is due to report its Q1 ’25 earnings on the 24 th of April after the market close, so I wanted to go over some numbers and what I willMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure: I/we have no stock, option or si ...

Core Insights - Warren Buffett has a history of achieving significant returns for investors, with a compound annual return of over 20% for shareholders over the last 60 years [2] - Buffett's investment strategy often involves going against Wall Street sentiment, as evidenced by his recent investment in VeriSign, which is not favored by many analysts [3][14] Company Overview - VeriSign holds exclusive rights to register .com and .net domains, allowing it to consistently raise prices within regulated limits set by ICANN [7] - The company reported a gross margin of 87.7% and an operating margin of 67.9% last year, indicating strong profitability [8] Recent Developments - Buffett increased his stake in VeriSign, purchasing $94 million worth of shares, bringing Berkshire Hathaway's ownership to 14% [5] - The shares were acquired at prices between $191 and $206, which are below the price targets set by analysts ranging from $260 to $275 [6] Market Position - Despite a decline in the total number of registered domains, VeriSign is experiencing strong new name registration rates and expects fewer expiring domains in 2025 [9][10] - Management is optimistic about future growth, focusing on customer acquisition and reducing the impact of high-churn Chinese-registered domains [10] Investment Considerations - VeriSign's stock has performed well since Buffett's purchase, trading around $255 per share, but carries a forward P/E ratio of approximately 29.6, indicating potential risk [11][12] - The company offers slow and steady growth with predictable free cash flow, which may appeal to investors in a volatile market [13]

VeriSign (VRSN 2.75%) has defied the recent stock market sell-off, with shares rising 19% year to date.The company continues to benefit as the sole registry operator for .com and .net domains, playing a pivotal role in internet services. However, a dynamic tech landscape, marked by the rise of alternative domain names like .ai and .io, has introduced uncertainty about VeriSign's long-term industry dominance.With the stock nearing its all-time high of $256 set in 2021, can the rally keep going? Or is it time ...

Core Viewpoint - Warren Buffett's recent stock selling does not preclude Berkshire Hathaway from making strategic purchases, particularly in VeriSign, which has not been added to since 2014 [1][2][3] Group 1: Berkshire Hathaway's Investment in VeriSign - Berkshire Hathaway increased its stake in VeriSign by approximately 474,000 shares, marking a 3.7% increase [2] - The last transaction involving VeriSign was a reduction of 1.1% in March 2020, making the recent purchase noteworthy [3] - The recent buy occurred at a similar price point to previous sales in 2020, but with a 20% lower share count due to share repurchases, indicating a lower market cap [4] Group 2: VeriSign's Business Operations - VeriSign operates the authoritative registry for .com and .net domain names and manages two of the 13 global root servers for the internet [5] - The company renewed contracts with ICANN and NTIA for six more years, allowing for a 7% price increase in the last four years of the contract [6][7] - This pricing strategy suggests a potential total price increase of around 30% over the next six years, which may outpace inflation [8] Group 3: Domain Registration Trends - In 2024, VeriSign experienced 4.3% revenue growth, entirely driven by price increases, while overall domain registrations fell by 2.1% [9] - Management indicated that declines in domain registrations in China may moderate, and new stimulus measures could lead to growth in that market [11] - The U.S. market, which also saw declines, may reverse in 2025 as VeriSign collaborates with registrars to enhance customer acquisition [12][13] Group 4: Future Growth Potential - Although net growth in domain names has not yet occurred, positive trends in gross additions suggest potential for recovery [14] - The post-pandemic slowdown in domain registrations is expected to eventually stabilize, leading to growth resuming around 2027 when price increases can be implemented again [15] - VeriSign's regulated monopoly supports a high-margin, cash-generative business model, which is likely to enhance earnings per share through share buybacks [16] Group 5: Stock Performance Outlook - Despite a 20% increase in stock price since Berkshire's recent purchase, VeriSign is still considered a viable long-term investment [17]