Financial Data and Key Metrics Changes - In 2023, revenue grew by 4.8% year-over-year to $1.493 billion, while operating income increased by 6.1% to $1 billion [9][19] - Operating expenses totaled $492 million, up 2.2% from the previous year, resulting in an operating margin of 67% [19][20] - Free cash flow for 2023 was $808 million, with Q4 free cash flow at $199 million [23][20] - Net income for Q4 2023 was $265 million, leading to diluted earnings per share of $2.860, compared to $1.70 in Q4 2022 [21][22] Business Line Data and Key Metrics Changes - The domain base in .com and .net totaled 172.9 million, down 0.6% from 2022, with a decrease of 1.2 million names in Q4 [11][12] - New registrations in Q4 were 9 million, down from 9.7 million in the same quarter last year, and total new registrations for 2023 were 39.4 million, a decrease of 490,000 from 2022 [12][13] - The renewal rate for Q4 2023 was approximately 73.1%, slightly down from 73.3% a year ago, with a full-year renewal rate of 73.9%, below 74.2% in 2022 [12][13] Market Data and Key Metrics Changes - The decline in domain names was primarily driven by a decrease in demand from China, with a loss of 2.2 million names from China-based registrars in 2023 [14][15] - Excluding China, the domain name base grew by 1.2 million names or 0.8% during 2023 [15] - The company expects the domain name base to remain flat in 2024, with a range of negative 1% to positive 1% [16] Company Strategy and Development Direction - The company announced a price increase for .com domain names from $9.59 to $10.26 effective September 1, 2024, while maintaining competitiveness [17] - The management emphasized responsible and disciplined business management, focusing on providing secure and reliable infrastructure services [27][28] Management's Comments on Operating Environment and Future Outlook - Management noted that the challenging economic conditions and regulatory environment in China are impacting demand, making it difficult to predict future trends [31] - The company remains cautious about guidance concerning China, expecting continued negative impacts on revenue and domain base growth in 2024 [15][31] Other Important Information - The company returned $883 million to shareholders through share repurchases in 2023, with $1.12 billion remaining authorized under the current share repurchase program [10] - Operating cash flow for 2023 was $854 million, with Q4 operating cash flow at $204 million [23][20] Q&A Session Summary Question: Update on China’s regulatory environment and its impact - Management highlighted that the decline in demand from China is due to a combination of challenging economic conditions, a more stringent regulatory environment, and foreign exchange issues [31] Question: Impact of China on domain base guidance - Management indicated that the negative impact from China is expected to continue into 2024, influencing both revenue and domain name base guidance [36] Question: Update on .web domain application - Management reiterated that there are no new updates on the .web application, emphasizing confidence in the eventual outcome [38] Question: Trends in domain growth outside of China - Management noted that growth outside of China primarily came from EMEA and other segments, while the US market was slightly down [43] Question: Margin outlook and investment plans for next year - Management discussed a projected expense growth rate of about 4.6% for 2024, with ongoing investments aligned with their strategic framework [44] Question: Thoughts on GoDaddy's partnership with Ethereum Name Service - Management viewed the partnership positively, seeing it as a reinforcement of the utility of domain names and their role as stable global identifiers [46]

VeriSign (VRSN) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.83 per share. This compares to earnings of $1.70 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.92%. A quarter ago, it was expected that this internet infrastructure services provider would post earnings of $1.74 per share when it actually produced earnings of $1.83, delivering a surprise of 5.17%.Over the last fo ...

VeriSign (VRSN) closed the latest trading day at $200.25, indicating a +0.69% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.25%. Elsewhere, the Dow saw an upswing of 0.97%, while the tech-heavy Nasdaq appreciated by 1.3%.Shares of the internet infrastructure services provider witnessed a loss of 1.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.42% and the S&P 500's gain of 1.58%.Market pa ...

VeriSign (VRSN) closed the most recent trading day at $203.11, moving +0.03% from the previous trading session. This change outpaced the S&P 500's 0.07% loss on the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.Prior to today's trading, shares of the internet infrastructure services provider had lost 1.57% over the past month. This has lagged the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05% in that time.The ...

VeriSign (VRSN) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this internet infrastructure services provider have returned -0.2%, compared to the Zacks S&P 500 composite's +0.9% change. During this period, the Zacks Internet - Software and Services industry, which VeriSign falls in, has lost 8.1%. The key question now is: What could be the stock' ...

The latest trading session saw VeriSign (VRSN) ending at $202.44, denoting a -0.85% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.37%. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq decreased by 0.19%.The internet infrastructure services provider's stock has dropped by 1% in the past month, falling short of the Computer and Technology sector's gain of 1.22% and the S&P 500's gain of 1.56%.The investment community will be closel ...

RESTON, Va.--(BUSINESS WIRE)--VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today announced that its earnings call for the fourth quarter and full year 2023 will take place on Thursday, Feb. 8, 2024, at 4:30 p.m. (EST). The earnings news release will be distributed to the wire services at approximately 4:05 p.m. (EST) that day and will also be available directly from the company’s website at https://investor.verisign.com. Verisign wi ...

Financial Data and Key Metrics - Revenue for Q3 2023 was $376 million, up 5.4% YoY [4] - Operating income for Q3 2023 was $254 million, up 7.4% YoY [4] - Net income for Q3 2023 was $188 million, compared to $169 million in Q3 2022 [26] - Diluted EPS for Q3 2023 was $1.83, up from $1.58 in Q3 2022 [26] - Operating cash flow for Q3 2023 was $245 million, down from $262 million in Q3 2022 [26] - Free cash flow for Q3 2023 was $217 million, down from $255 million in Q3 2022 [26] - The domain name base for .com and .net totaled 173.9 million at the end of Q3 2023, slightly up from 173.8 million at the end of 2022 [37] - The domain name base decreased by 0.5 million in Q3 2023 [37] - The renewal rate for Q3 2023 was approximately 73.4%, compared to 73.7% in Q3 2022 [23] Business Line Data and Key Metrics - New domain registrations in Q3 2023 were 9.9 million, flat YoY [2] - Revenue from China-based registrars was $22 million, down $5 million YoY [7] - Revenue from registrars outside China was $354 million, up $24 million YoY [7] Market Data and Key Metrics - China market demand remains weak due to challenging economic conditions, stringent regulations, and weaker local currency [7][43] - Ex-China registrars showed growth in both new registrations and domain name base [9][23] - The company expects the full-year 2023 domain name base change to be between -0.4% and +0.4%, reflecting uncertainty primarily due to China's weakness [23] Company Strategy and Industry Competition - The company is focused on delivering secure and reliable infrastructure services and managing expenses responsibly [27][35] - The introduction of .web is expected to add more registration choices and attract millions of potential customers [3] - The company continues to invest in infrastructure while managing expenses, with a focus on responsible expense control [16][31] Management Commentary on Operating Environment and Future Outlook - The company acknowledges ongoing macroeconomic and geopolitical turbulence, including high interest rates, inflation, and geopolitical issues [9][17] - The company remains optimistic about its business fundamentals and ability to deliver strong financial results despite external challenges [28] - The company expects full-year 2023 revenue to be between $1.490 billion and $1.495 billion, with operating income between $995 million and $1 billion [40] Other Important Information - The company repurchased 1.1 million shares for $220 million in Q3 2023, with $1.34 billion remaining under the share repurchase program [38] - The company ended Q3 2023 with $943 million in cash, cash equivalents, and marketable securities [38] Q&A Session Summary Question: China Market Outlook - The company noted weak demand in China due to economic conditions, regulatory environment, and currency issues [7][43] - Management believes the situation in China is a "perfect storm" and is uncertain when it will stabilize [44] Question: ICANN's .web Decision - The company supports ICANN's decision regarding .web and believes the IRP filed by Altanovo is for delay purposes [3][39] - The company intends to bring .web to market and is monitoring legal proceedings [45] Question: Domain Growth by Geography - The company does not break out domain name base by geography for competitive reasons but points to geographic revenue disclosures for growth insights [9][47] - The company charges the same price across all markets, and the domain name base remains resilient outside of China [47] Question: Cost Management and Investments - The company expects expenses to be lower by around 3% in 2023, with $5 million in cost savings from .tv migration [10] - The company will provide full-year 2024 guidance in the next earnings call [10][16] Question: Macroeconomic Impact - The company acknowledges macroeconomic and geopolitical challenges, including high interest rates and inflation, but remains focused on controlling what it can [12][17] - The company is cautious about the impact of global events, such as the Ukraine conflict and Middle East tensions, on the economy [17]

Financial Performance - For the three and nine months ended September 30, 2023, the company recorded revenues of $376.3 million and $1,112.7 million, representing a 5% increase compared to the same periods in 2022[45]. - The operating income for the same periods was $254.3 million and $744.3 million, reflecting a 7% increase year-over-year[45]. - Cash flows from operating activities for the nine months ended September 30, 2023, were $649.6 million, compared to $614.2 million for the same period in 2022[50]. - Net cash provided by operating activities increased to $649.6 million for the nine months ended September 30, 2023, compared to $614.2 million in the same period last year[69]. - Net cash used in financing activities decreased to $663.5 million for the nine months ended September 30, 2023, compared to $821.7 million in the same period last year[74]. Domain Registrations - As of September 30, 2023, the company had 173.9 million .com and .net registrations, a 0.1% decrease from the previous year and a net decrease of 0.5 million from June 30, 2023[45]. - The renewal rate for .com and .net domains for Q2 2023 was 73.4%, down from 73.8% in Q2 2022[45]. - The company experienced competitive pressure from ccTLDs and other gTLDs, which has limited the demand for domain names, particularly in China[52]. Revenue by Geography - Geographic revenue from the U.S. increased by 6% to $250.8 million for Q3 2023, while revenue from China decreased by 18% to $22.0 million[53]. Expenses - Research and development expenses increased by 4% to $21.7 million for the three months ended September 30, 2023, and by 6% to $68.1 million for the nine months ended September 30, 2023[57][58]. - Selling, general and administrative expenses rose by 5% to $51.7 million for the three months ended September 30, 2023, and by 5% to $151.5 million for the nine months ended September 30, 2023[60][61]. - The cost of revenues for Q3 2023 was $48.6 million, a 3% decrease from $50.0 million in Q3 2022[55]. - Cost of revenues decreased by $3.7 million due to a transition in registry operations, partially offset by a $3.1 million increase in compensation and benefit expenses[56]. Share Repurchase and Debt - The company authorized a total share repurchase program of up to $1.50 billion, with approximately $1.34 billion remaining available for future repurchases as of September 30, 2023[45]. - The company had $750.0 million in 2.70% senior unsecured notes due 2031 and $550.0 million in 4.75% senior unsecured notes due 2027 as of September 30, 2023[67]. Cash and Liquidity - Cash and cash equivalents decreased to $157.7 million as of September 30, 2023, down from $373.6 million at the end of 2022[65]. - The company believes existing cash, cash equivalents, and marketable securities will be sufficient to meet working capital and capital expenditure requirements for the next 12 months[68]. Taxation - The effective tax rate remained consistent at 24% for the three and nine months ended September 30, 2023[64]. Future Plans - The company plans to increase the annual registry-level wholesale fee for .net domain registrations from $9.92 to $10.91, effective February 1, 2024[50].

VeriSign, Inc. (NASDAQ:VRSN) Q2 2023 Earnings Conference Call July 27, 2023 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 - Robert W. Baird Ygal Arounian - Citigroup Operator Good day, everyone. Welcome to VeriSign's Second Quarter 2023 Earnings Call. Today's conference is being recorde ...