Core Insights - The market experienced strong selling in December 2024, deviating from the typical Santa Claus rally [1] - Berkshire Hathaway, led by Warren Buffett, made significant investments in Verisign, a classic internet stock that has appreciated over 3,000% since its IPO in 1998 [2] Company Strategy - Berkshire Hathaway has maintained a disciplined investment approach, focusing on value rather than high-multiple AI stocks, and has accumulated over $300 billion in cash, indicating a view of the market as overvalued [3] - Despite a quiet year for acquisitions, Berkshire outperformed the S&P 500 slightly and increased its stake in Verisign during market declines [4] Investment Details - Between December 17 and December 30, Berkshire purchased over 454,000 shares of Verisign at an average price of $198.88, totaling over $90 million, resulting in a 13.8% stake in the company [5] - Verisign's stock has increased approximately 3,150% since its public offering, yet it remains under the radar with only two analysts covering it [6] Company Attributes - Verisign is the largest domain operator globally, managing nearly 170 million dot-com and dot-net domains, which provides a competitive advantage [7] - The company has a profit margin exceeding 55%, indicating strong pricing power [7] Market Concerns - Verisign's stock rose only about 3% in 2024, underperforming the broader market, with concerns about a decline in active and registered domain names, which fell by approximately 2.5% year-over-year in Q3 [8] - Regulatory concerns regarding Verisign's contract to run the dot-com registry were alleviated with the contract renewal, although pricing tactics remain under scrutiny [9][10]

Company Analysis - VeriSign (NASDAQ: VRSN) trades at a slight premium with a P/E ratio of around 23x, slightly above the current S&P 500 P/E ratio of 28 7% [1] - The P/E ratio of VeriSign is expected to stabilize at around 22x [1] Analyst Background - The analyst has a strong foundation in financial modeling, valuation, and data analysis [1] - The analyst holds FMVA (Financial Modeling & Valuation Analyst) and BIDA (Business Intelligence & Data Analyst) certifications from the Corporate Finance Institute (CFI) in Canada [1] - The analyst has a bachelor's degree in petroleum and gas engineering [1] Analyst Focus - The analyst is particularly interested in the technology, infrastructure, and internet services sectors [1] - The analyst focuses on companies with great fundamentals and growth potential [1] - The analyst aims to provide value to readers and investors who share a passion for long-term investing [1]

Core Viewpoint - Senator Elizabeth Warren is advocating for an antitrust investigation into the web domain registration business, specifically targeting Verisign's control over the top-level domain (TLD) market [1][4]. Group 1: Market Control and Pricing - The TLD market is currently dominated by Verisign, which manages the .com domain used by 150 million websites, charging over $10 annually for each registration [2][3]. - Verisign's pricing strategy has reportedly generated over $1 billion in revenue, which critics argue is a result of predatory pricing that benefits shareholders rather than improving service [3]. - During President Trump's administration, the NTIA relaxed restrictions on Verisign, allowing the company to increase its annual registration fees by more than 30% [3]. Group 2: Allegations and Responses - Advocacy groups, including The American Economic Liberties Project, have accused Verisign of holding a monopoly in the TLD sector and have urged the NTIA and Justice Department not to renew its no-bid contract [4]. - Verisign has responded to these allegations by claiming that criticisms are based on factual inaccuracies and misunderstandings of the domain name industry, asserting that the technical nature of TLD registries necessitates a single operator [5]. - The company argues that there is a diverse array of choices in the marketplace, with other TLDs like .org, .shop, .ai, and .uk not being monopolies [5].

Q3 2024 Earnings Conference Call October 24, 2024 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 2024 renewal rate expectations, (ii) Domain Name Base change expectations, and (iii) our full year 2024 financial guidance f ...

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 September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Trading Symbol(s) VRSN For the transition period from to Commission File Number: 000-23593 VERISIGN, INC. (Exact name of regi ...

Financial Performance - VeriSign reported revenue of $391 million for Q3 2024, a 3.8% increase from Q3 2023[1] - Operating income for Q3 2024 was $269 million, compared to $254 million in Q3 2023[1] - Net income for Q3 2024 was $201 million, with diluted EPS of $2.07, up from net income of $188 million and diluted EPS of $1.83 in Q3 2023[1] - Net income for the nine months ended September 30, 2024, increased to $594.2 million, up from $552.9 million in the same period last year, representing a growth of approximately 7.3%[11] - Net cash provided by operating activities rose to $671.1 million, compared to $649.6 million in the prior year, reflecting an increase of about 3.8%[11] - Cash paid for income taxes, net of refunds received, was $187.1 million, compared to $178.8 million in the prior year, reflecting an increase of about 4.6%[11] Cash Flow and Investments - Cash flow from operations was $253 million in Q3 2024, compared to $245 million in Q3 2023[2] - Proceeds from maturities and sales of marketable securities reached $1,009.6 million, significantly higher than $750.8 million in the previous year, indicating a growth of approximately 34.4%[11] - Cash, cash equivalents, and restricted cash at the end of the period totaled $272.7 million, up from $163.0 million at the end of the previous year, marking an increase of approximately 67.3%[11] - The company experienced a net increase in cash of $27.2 million, contrasting with a decrease of $(216.0) million in the same period last year[11] Shareholder Actions - VeriSign repurchased 1.7 million shares of common stock for an aggregate cost of $301 million during Q3 2024[2] - As of September 30, 2024, there was $1.28 billion remaining for future share repurchases under the share repurchase program[2] Domain Registrations - VeriSign ended Q3 2024 with 169.6 million .com and .net domain name registrations, a 2.5% decrease from Q3 2023[3] - During Q3 2024, VeriSign processed 9.3 million new domain name registrations for .com and .net, down from 9.9 million in Q3 2023[3] - The renewal rate for .com and .net domains for Q2 2024 was 72.7%, compared to 73.4% in Q2 2023[3] Deferred Revenues - Deferred revenues as of September 30, 2024, totaled $1.30 billion, an increase of $53 million from year-end 2023[2] - Deferred revenues increased to $52.9 million, compared to $43.0 million in the previous year, representing a growth of about 23.3%[11] Expenses and Depreciation - The company reported a decrease in depreciation of property and equipment to $28.1 million from $33.7 million, a reduction of approximately 16.6%[11] - Stock-based compensation expense remained relatively stable at $45.2 million, slightly up from $45.0 million year-over-year[11] Financing Activities - Net cash used in financing activities was $(951.0) million, compared to $(663.5) million in the same period last year, showing an increase in cash outflow of about 43.4%[11]

UKRAINE - 2021/04/26: In this photo illustration, the Verisign logo is seen on a smartphone and a pc ... [+] screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Given its better prospects, we believe VeriSign stock (NASDAQ: VRSN), which provides domain name registry services and internet infrastructure, is a better pick than its industry peer, Gen Digital stock (NASDAQ: GEN), best known for its cyber safety products, including Norto ...

VeriSign, Inc. (NASDAQ:VRSN) Q2 2024 Earnings Conference Call July 25, 2024 4:30 PM ET Company Participants David Atchley - Vice President of Investor Relations & Corporate Treasurer Jim Bidzos - Executive Chairman, President & Chief Executive Officer George Kilguss - Executive Vice President & Chief Financial Officer Conference Call Participants Rob Oliver - Baird Ygal Arounian - Citigroup Operator Good day, everyone. Welcome to VeriSign's Second Quarter 2024 Earnings Call. Today's conference is being reco ...

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 June 30, 2024 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. Registrant's telephone number, including area c ...

Verisign Reports Second Quarter 2024 Results RESTON, VA - July 25, 2024 - VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the second quarter of 2024. VeriSign, Inc. and its subsidiaries ("Verisign") reported revenue of $387 million for the second quarter of 2024, up 4.1 percent from the same quarter in 2023. Operating income was $266 million for the second quarter of 2024, compared to $249 million fo ...