VeriSign, Inc. (NASDAQ:VRSN) Q4 2021 Earnings Conference Call February 10, 2022 4:30 PM ET Company Participants David Atchley - Vice President, Investor Relations, and Corporate Treasurer Jim Bidzos - Executive Chairman and Chief Executive Officer Todd Strubbe - President and Chief Operating Officer George Kilguss - Executive Vice President and Chief Financial Officer Conference Call Participants Sterling Auty - JPMorgan Rob Oliver - Robert W. Baird Operator Good day, everyone, and welcome to VeriSign's Fou ...

Verisign Q3 2021 Earnings Conference Call October 28, 2021 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) Q3 2021 renewal rate expectations, (ii) Domain Name Base increase expectations, and (iii) our full year 2021 financial ...

VeriSign, Inc. (NASDAQ:VRSN) Q1 2022 Earnings Conference Call October 28, 2021 4:30 PM ET Company Participants David Atchley - VP, IR, Corporate Treasurer Jim Bidzos - Chairman & CEO George Kilguss - CFO Conference Call Participants Rob Oliver - Robert W. Baird Nick Jones - Citi Sterling Auty - JPMorgan Operator Good day, everyone. Welcome to the VeriSign's Third Quarter 2021 Earnings Call. Today's conference is being recorded. Recording of this call is not permitted unless preauthorized. Thank you. At this ...

Revenue and Registrations - For the three and nine months ended September 30, 2021, the company recorded revenues of $334.2 million and $987.3 million, representing increases of 5% and 4% compared to the same periods in 2020[46]. - The company had 172.1 million .com and .net registrations as of September 30, 2021, a 5% increase from 163.7 million registrations on September 30, 2020[53]. - Total revenues for the three months ended September 30, 2021, were $334,242,000, representing a 5% increase compared to $317,879,000 in the same period of 2020[57]. - U.S. revenues increased by 6% to $214,352,000 for the three months ended September 30, 2021, while revenues from China decreased by 10% to $24,607,000[57]. - The company expects quarterly revenues to continue to grow in the fourth quarter of 2021 due to the increase in .com domain names and the recent price increase[55]. Operating Income and Expenses - Operating income for the three and nine months ended September 30, 2021, was $221.3 million and $644.7 million, reflecting increases of 7% and 4% respectively compared to the same periods in 2020[46]. - Cost of revenues for the three months ended September 30, 2021, was $47,801,000, a 6% increase from $45,024,000 in the same period last year[59]. - Sales and marketing expenses rose by 12% to $9,410,000 for the three months ended September 30, 2021, compared to $8,389,000 in the same period of 2020[63]. - Research and development expenses remained consistent at $19,566,000 for the three months ended September 30, 2021, compared to $19,708,000 in the same period last year[66]. - General and administrative expenses decreased by 5% to $36,160,000 for the three months ended September 30, 2021, down from $38,109,000 in the same period of 2020[70]. - Interest expense decreased by $3.7 million for the three months ended September 30, 2021, compared to the same period last year, due to lower interest rates on the company's debt[73]. - The effective tax rate for the three months ended September 30, 2021, was 23%, compared to 8% in the same period of 2020[76]. Cash Flow and Financial Position - The company generated cash flows from operating activities of $600.9 million during the nine months ended September 30, 2021, compared to $535.0 million for the same period in 2020[50]. - Cash and cash equivalents as of September 30, 2021, were $256,869,000, down from $401,194,000 as of December 31, 2020[79]. - Marketable securities increased to $941,552,000 as of September 30, 2021, compared to $765,713,000 as of December 31, 2020[79]. - For the nine months ended September 30, 2021, net cash provided by operating activities was $600.9 million, an increase from $534.9 million in the same period last year[83]. - Cash received from customers increased due to higher domain name registrations and renewals, partially offset by increased cash paid to employees and vendors[85]. - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $148.1 million for the nine months ended September 30, 2021[83]. Share Repurchase and Debt Management - The company repurchased 0.8 million shares of common stock for an aggregate cost of $172.4 million during the three months ended September 30, 2021[50]. - During the three months ended September 30, 2021, the company repurchased 0.8 million shares for an aggregate cost of $172.4 million, with approximately $565.1 million remaining for future share repurchases[80]. - The company issued $750.0 million of 2.700% senior unsecured notes due June 15, 2031, and redeemed all $750.0 million of 4.625% senior notes due 2023[81]. - As of September 30, 2021, the company had no borrowings outstanding under its $200.0 million credit facility expiring in 2024[81]. - The company believes existing cash, cash equivalents, and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[82]. Market Conditions and Future Outlook - The renewal rate for .com and .net domains for the second quarter of 2021 was 75.4%, up from 72.8% in the second quarter of 2020[46]. - The company anticipates that the ongoing COVID-19 pandemic may continue to impact the demand for domain names as businesses seek to establish or expand their online presence[49]. - Net cash used in investing activities decreased to $215.1 million for the nine months ended September 30, 2021, compared to $305.8 million in the same period last year[83]. - Net cash used in financing activities decreased to $533.3 million for the nine months ended September 30, 2021, primarily due to proceeds from the issuance of the 2031 Notes[88].

VeriSign, Inc. (NASDAQ:VRSN) Q2 2021 Earnings Conference Call July 22, 2021 4:30 PM ET Company Participants David Atchley - Vice President, Investor Relations & Corporate Treasurer Jim Bidzos - Executive Chairman & Chief Executive Officer George Kilguss - Executive Vice President & Chief Financial Officer Conference Call Participants Rob Oliver - R.W. Baird Nick Jones - Citi Operator Good day, everyone, and welcome to VeriSign Second Quarter 2021 Earnings Conference Call. Today's conference is being recordi ...

Q2 2021 Earnings Conference Call July 22, 2021 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) Q2 2021 renewal rate expectations, (ii) Domain Name Base increase expectations, and (iii) our full year 2021 financial guidance fo ...

[Part I—Financial Information](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Verisign's unaudited condensed consolidated financial statements for the period ended June 30, 2021, including Balance Sheets, Statements of Comprehensive Income, Stockholders' Deficit, and Cash Flows, with accompanying notes on accounting policies and financial figures [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2021, Verisign's total assets were **$1.74 billion**, total liabilities **$3.16 billion**, and stockholders' deficit increased to **$1.42 billion** from **$1.39 billion** due to share repurchases Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $1,189,067 | $1,217,940 | | **Total assets** | $1,741,380 | $1,766,910 | | **Total current liabilities** | $998,334 | $988,693 | | **Total liabilities** | $3,159,165 | $3,157,108 | | **Total stockholders' deficit** | $(1,417,785) | $(1,390,198) | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) In Q2 2021, revenues rose **4.8%** to **$329.4 million** and operating income grew **3.0%** to **$213.0 million**, with six-month revenues reaching **$653.0 million** and net income at **$298.1 million** Financial Performance (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $329,405 | $314,365 | $653,026 | $626,889 | | **Operating Income** | $212,979 | $206,780 | $423,386 | $413,044 | | **Net Income** | $147,772 | $152,479 | $298,126 | $486,595 | | **Diluted EPS** | $1.31 | $1.32 | $2.64 | $4.19 | [Condensed Consolidated Statements of Stockholders' Deficit](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Deficit) Stockholders' deficit increased from **$1.39 billion** to **$1.42 billion** by June 2021, primarily due to **$361.2 million** in share repurchases, partially offset by **$298.1 million** in net income - For the six months ended June 30, 2021, the company repurchased **$361.2 million** of its common stock[12](index=12&type=chunk) - Net income of **$298.1 million** for the six months ended June 30, 2021, partially offset the increase in the accumulated deficit caused by share repurchases[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$340.8 million** for the first half of 2021, with **$164.9 million** used in investing and **$360.8 million** in financing activities, primarily for share repurchases and debt refinancing Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $340,844 | $395,372 | | **Net cash used in investing activities** | $(164,884) | $(174,368) | | **Net cash used in financing activities** | $(360,769) | $(421,530) | | **Net decrease in cash, cash equivalents, and restricted cash** | $(185,173) | $(201,491) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail key financial events, including the issuance of **$750.0 million** in new senior notes and redemption of existing debt, **$345.1 million** in share repurchases, and revenue growth across most regions except China - On June 8, 2021, the company issued **$750.0 million** of 2.700% senior notes due 2031, using proceeds to redeem **$750.0 million** of 4.625% senior notes due 2023, resulting in a **$2.1 million** loss on debt extinguishment[33](index=33&type=chunk)[34](index=34&type=chunk) - During the six months ended June 30, 2021, the company repurchased **1.7 million** shares of its common stock for an aggregate cost of **$345.1 million**; **$737.5 million** remained available for future repurchases as of June 30, 2021[27](index=27&type=chunk) Revenues by Geography (in thousands) | Region | Six Months 2021 | Six Months 2020 | % Change | | :--- | :--- | :--- | :--- | | U.S. | $418,072 | $396,911 | +5.3% | | EMEA | $114,102 | $105,069 | +8.6% | | China | $50,367 | $59,213 | -14.9% | | Other | $70,485 | $65,696 | +7.3% | | **Total** | **$653,026** | **$626,889** | **+4.2%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=12&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2021 operational and financial performance, highlighting a **5%** increase in .com and .net domain registrations driving revenue growth, regional performance, cost analysis, liquidity, and recent debt refinancing, alongside a planned .com price increase - The company announced it will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from **$7.85** to **$8.39**, effective September 1, 2021[52](index=52&type=chunk) - The domain name base for .com and .net registrations grew to **170.6 million** as of June 30, 2021, a **5%** increase from the prior year, driving revenue growth[43](index=43&type=chunk)[45](index=45&type=chunk) - The company believes the COVID-19 pandemic has led to an increase in demand for domain names as businesses expand their online presence, but the long-term impact remains uncertain[48](index=48&type=chunk) [Business Highlights and Trends](index=12&type=section&id=Business%20Highlights%20and%20Trends) Verisign's Q2 2021 revenues increased **5%**, driven by a **5%** growth in .com and .net domain base to **170.6 million** registrations, with **11.7 million** new registrations and a **76.0%** Q1 renewal rate, alongside **$172.5 million** in share repurchases Key Business Metrics - Q2 2021 | Metric | Q2 2021 | YoY Change | | :--- | :--- | :--- | | Revenues | $329.4M | +5% | | Operating Income | $213.0M | +3% | | .com & .net Registrations | 170.6M | +5% | | New .com & .net Registrations | 11.7M | +5.4% (vs 11.1M) | - The final .com and .net renewal rate for the first quarter of 2021 was **76.0%**, compared to **75.4%** for the first quarter of 2020[45](index=45&type=chunk) [Results of Operations](index=14&type=section&id=Results%20of%20Operations) Q2 and H1 2021 revenues increased **5%** and **4%** respectively, driven by a **6%** rise in .com domain base, with growth in most regions except a **14%** decline in China, while cost of revenues increased due to higher ICANN fees and operating expenses rose moderately Revenue Comparison (in thousands) | Period | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $329,405 | $314,365 | 5% | | **Six Months Ended June 30** | $653,026 | $626,889 | 4% | - Revenues from registrars based in China declined during the three and six months ended June 30, 2021 by **14%** and **15%** respectively, due to lower new registrations and renewal rates[57](index=57&type=chunk) - Cost of revenues increased for the three and six months ended June 30, 2021, primarily due to higher registry fees payable to ICANN[59](index=59&type=chunk)[60](index=60&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2021, Verisign held **$1.12 billion** in liquidity, generated **$340.8 million** from operations, and used cash for **$172.5 million** in share repurchases and debt refinancing, with management confident in sufficient liquidity for the next 12 months Sources of Liquidity (in thousands) | Component | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $216,497 | $401,194 | | Marketable securities | $906,492 | $765,713 | | **Total** | **$1,122,989** | **$1,166,907** | - In June 2021, the company issued **$750.0 million** of 2.700% senior notes due 2031 and used the proceeds to redeem its **$750.0 million** 4.625% senior notes due 2023[78](index=78&type=chunk) - Net cash from operating activities decreased to **$340.8 million** for the first six months of 2021 from **$395.4 million** in the prior year, primarily due to higher cash payments for income taxes[80](index=80&type=chunk)[82](index=82&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its market risk exposures since December 31, 2020 - There have been no significant changes in our market risk exposures since December 31, 2020[87](index=87&type=chunk) [Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2021, Verisign's CEO and CFO concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[88](index=88&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[89](index=89&type=chunk) [Part II—Other Information](index=20&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=20&type=section&id=Item%201.%20Legal%20Proceedings) The company provides an update on the .web gTLD auction dispute, where an IRP panel dismissed Afilias' claims to invalidate the auction but recommended ICANN's Board consider objections before delegating .web, with a ruling on a subsequent application anticipated in Q4 2021 - An IRP panel delivered a final decision on May 20, 2021, regarding the .web gTLD auction dispute with Afilias[93](index=93&type=chunk) - The panel dismissed Afilias' claims to invalidate the .web auction and be awarded the .web TLD, but recommended ICANN's Board consider Afilias' objections before making a final decision on the delegation of .web[93](index=93&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) Verisign reports no material changes to its risk factors since the December 31, 2020, Annual Report on Form 10-K, referring investors to that document for comprehensive risk discussion - There have been no material changes to the Company's risk factors since the 2020 Form 10-K[96](index=96&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=20&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2021, Verisign repurchased approximately **797,000** shares for **$172.5 million** at an average price of **$216.44** per share, with **$737.5 million** remaining for future repurchases as of June 30, 2021 Share Repurchase Activity (Q2 2021) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | April 2021 | 277 | $207.33 | $852.5 million | | May 2021 | 248 | $220.95 | $797.7 million | | June 2021 | 272 | $221.73 | $737.5 million | | **Total Q2** | **797** | **-** | **-** | [Exhibits](index=21&type=section&id=Item%206.%20Exhibits) This section lists Form 10-Q exhibits, including the Indenture for new debt, CEO and CFO certifications, and the Interactive Data File (XBRL) - The exhibits filed with this report include the Indenture for the June 2021 debt issuance, CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and the Inline XBRL document[99](index=99&type=chunk)

Q1 2021 Earnings Conference Call April 22, 2021 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 2021 renewal rate expectations, (ii) Domain Name Base increase expectations, and (iii) our full year 2021 financial guidance f ...

VeriSign, Inc. (NASDAQ:VRSN) Q1 2021 Earnings Conference Call April 22, 2021 4:30 PM ET Company Participants David Atchley - VP & Corporate Treasurer Jim Bidzos - Executive Chairman and CEO George Kilguss - Executive Vice President and CFO Conference Call Participants Rob Oliver - Baird Nick Jones - Citi Sterling Auty - JPMorgan Operator Good day, everyone, and welcome to VeriSign's First Quarter 2021 Earnings Call. Today's conference is being recording. Recording of this call is not permitted unless preaut ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 000-23593 VERISIGN, INC. (Exact name of registrant as specified in its ...