Core Viewpoint - The article discusses the impact of tariffs on financial markets and highlights two stocks, CyberArk Software and Verisign, that are well-positioned to withstand tariff-related uncertainties [1][2][3]. Group 1: CyberArk Software - CyberArk Software is identified as a strong player in the cybersecurity sector, which is likely to be one of the last areas where businesses cut spending during economic uncertainty [4][5]. - The company primarily secures data through software solutions, reducing its direct tariff risk compared to hardware-dependent firms [6]. - CyberArk specializes in Privileged Access Management (PAM), protecting users with access to sensitive information, making it resilient to business uncertainties [7][8]. - Dan Ives from Wedbush Securities notes that CyberArk is expected to outperform other tech stocks amid tariff concerns [9]. Group 2: Verisign - Verisign is a monopolistic tech firm that dominates the generic top-level domain (gTLD) market, particularly with ".com" and ".net" domains [10][11]. - The company operates under exclusive agreements with ICANN, ensuring its strong market position as businesses must pay Verisign to operate websites with these suffixes [11]. - Verisign's services are not directly affected by tariffs since it sells services rather than physical goods, and companies are unlikely to stop paying for domain registrations due to tariffs [12][13]. - The company has shown consistent revenue growth since 2008, with a net income margin of around 48%, and is backed by Warren Buffett's Berkshire Hathaway, which owns approximately 14% of its shares [14].

Domain Name Base - The domain name base reached 169.8 million at the end of Q1 2025, a decrease of 1.5% year-over-year[12] - There was a net increase of 0.78 million domain names quarter-over-quarter[12] - The .com domain names are 157.2 million and .net domain names are 12.6 million[13] Renewal Rate and New Registrations - The preliminary renewal rate for Q1 2025 was 74.0%, compared to 74.1% in the same quarter last year[17] - New name registrations in Q1 2025 were 10.1 million, an increase of 5.3% year-over-year from 9.5 million in Q1 2024[17] - Expiring names for Q2 2025 are 37.6 million, compared to 39.2 million in Q2 2024[17] Capital Allocation - The company repurchased 1.0 million shares in Q1 2025, amounting to $230 million[19] - Share repurchases totaled $1.2 billion in the four quarters ending Q1 2025[26] - The company announced a quarterly cash dividend of $0.77 per share[11, 26] Financial Performance - Revenue for Q1 2025 was $402 million, an increase of 4.7% year-over-year[22] - Operating income for Q1 2025 also increased by 4.7% year-over-year[22] - Free cash flow for the three months ended March 31, 2025, was $285.5 million[33] Full Year 2025 Guidance - The company expects domain base growth to be between -0.7% and +0.9%[24] - Revenue is projected to be between $1.635 billion and $1.650 billion[24] - Operating income is expected to be between $1.110 billion and $1.125 billion[24]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated revenue of $402 million, up 4.7% year-over-year [17] - Operating expenses totaled $131 million, slightly up from $125 million a year ago [17] - Net income for the quarter was $199 million, compared to $194 million in the same quarter last year, resulting in diluted earnings per share of $2.10, up from $1.92 [18] - Operating cash flow was $291 million, and free cash flow was $286 million, both higher than the previous year's figures [19] Business Line Data and Key Metrics Changes - The domain name base for .com and .net reached 169.8 million, an increase of 777,000 from year-end 2024 [9] - New registrations for Q1 totaled 10.1 million, compared to 9.5 million in the previous quarter and the same quarter last year [10] - Renewal rate improved to 75.3% from 74.1% a year ago [11] Market Data and Key Metrics Changes - The company observed improvements in domain name base trends across its main regions: the US, EMEA, and Asia Pacific [11] - The updated guidance for the domain name base change for 2025 is now expected to range from negative 0.7% to positive 0.9% [11] Company Strategy and Development Direction - The company is diversifying its return of capital to shareholders by initiating a cash dividend of 77¢ per share, reflecting confidence in its business stability [14][15] - The focus remains on maintaining adequate liquidity, investing in the business, and returning excess cash to shareholders [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are positive trends in new registrations and renewal rates, caution is warranted due to macroeconomic uncertainties [12][34] - The company is encouraged by registrar engagement with marketing programs, which are believed to contribute to improved registration trends [43] Other Important Information - The company repurchased 1 million shares, returning $230 million to shareholders, with $793 million remaining under the current share repurchase program [13] - The company issued $500 million in new senior notes to refinance existing debt [18] - The transition to a new CFO is planned for May, ensuring continuity in financial leadership [21] Q&A Session Summary Question: Timing of initiating a dividend - Management indicated that the decision to initiate a dividend reflects the company's stability and is part of a long-term strategy to diversify shareholder returns [25][27] Question: Drivers of domain name base performance - The company attributed the strong performance to positive trends and registrar engagement, while also acknowledging macroeconomic uncertainties [30][34] Question: Update on marketing channel programs - Management reported good registrar interest in new marketing programs, contributing to improved registration trends [42][43] Question: Macroeconomic outlook - Management expressed caution regarding the macroeconomic environment but noted positive shifts in customer acquisition and registrar spending [46][50] Question: Update on .web - The company intends to become the operator for .web and anticipates a ruling on its application to participate in the IRP soon [61][62]

VeriSign (VRSN) Q1 2025 Earnings Call April 24, 2025 04:30 PM ET Company Participants David Atchley - VP, Treasury & Investor RelationsD. James Bidzos - Executive Chairman, President & CEOGeorge Kilguss - Executive VP & CFOYgal Arounian - Director - Internet Equity ResearchJohn Calys - SVP & Chief Accounting Officer Conference Call Participants Rob Oliver - Senior Research Analyst Operator Good day, everyone. Welcome to VeriSign's First Quarter twenty twenty five Earnings Call. Today's conference is being r ...

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]

Financial Performance - VeriSign reported revenue of $402 million for Q1 2025, a 4.7% increase from Q1 2024[3] - Operating income for Q1 2025 was $271 million, compared to $259 million in Q1 2024[3] - Net income for Q1 2025 was $199 million, with diluted EPS of $2.10, up from $194 million and $1.92 in Q1 2024[3] - Cash flow from operations was $291 million in Q1 2025, an increase from $257 million in Q1 2024[7] Deferred Revenues - Deferred revenues as of March 31, 2025, totaled $1.36 billion, up $57 million from year-end 2024[7] Domain Registrations - VeriSign processed 10.1 million new domain name registrations for .com and .net in Q1 2025, compared to 9.5 million in Q1 2024[7] - The renewal rate for .com and .net domains for Q4 2024 was 74.0%, up from 73.2% in Q4 2023[7] Shareholder Returns - VeriSign repurchased 1.0 million shares of common stock for $230 million during Q1 2025[7] - The Board declared a cash dividend of $0.77 per share, payable on May 28, 2025[7] Cash Position - VeriSign ended Q1 2025 with cash, cash equivalents, and marketable securities of $649 million, an increase of $49 million from year-end 2024[7]

Warren Buffett's Berkshire Hathaway has long held a position in VeriSign (VRSN 1.54%). The company first began acquiring shares in 2012. It made the bulk of its purchases from 2012 to 2014 but had periodically trimmed its position until late last year, when it suddenly began repurchasing shares in December. Berkshire has earned massive gains in the stock in its 13-year history of holding shares, but the sudden resurgence in interest comes as a surprise. Given this activity, should investors follow the lead ...

VeriSign and Palo Alto Networks face fewer headwinds than the iPhone maker.Apple (AAPL 3.95%) is often considered a reliable blue chip tech stock. But since the beginning of 2025, its stock has sunk nearly 30% amid fears of higher tariffs. Apple generates most of its revenue from its iPhones, iPads, and Macs, and most of those hardware products are manufactured in Asia.The Trump administration's "Liberation Day" tariffs against its production hubs in China, India, and Vietnam will drive up its manufacturing ...

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 ...