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 ...

Core Viewpoint - Apple faces significant challenges due to increased tariffs, leading to a nearly 30% decline in its stock since the beginning of 2025, while VeriSign and Palo Alto Networks are seen as more resilient investment options in the current environment [1][4]. Group 1: Apple - Apple generates a majority of its revenue from hardware products manufactured in Asia, making it vulnerable to tariff increases [1][2]. - The Trump administration's tariffs are expected to raise manufacturing costs and could lead to higher retail prices in international markets, impacting Apple's revenue growth and margins [2][3]. - Despite having $141 billion in cash and marketable securities, Apple's stock may continue to decline unless tariff policies are reconsidered [3]. Group 2: VeriSign - VeriSign operates the authoritative domain name registries for .com and .net, with a business model characterized by predictable growth and a wide moat [5][7]. - From 2014 to 2024, VeriSign's .com and .net registrations grew from 130.6 million to 169 million, with a revenue CAGR of 4% and an EPS CAGR of 12% [6]. - The company has faced regulatory scrutiny, but recent agreements with the U.S. government have alleviated these concerns, and its business is not significantly impacted by tariffs [8]. - Analysts project a 9% EPS growth for VeriSign in 2025 and a reasonable valuation at 27 times forward earnings [9]. Group 3: Palo Alto Networks - Palo Alto Networks is a leading cybersecurity company with over 80,000 enterprise customers, offering services across three main ecosystems: Strata, Prisma, and Cortex [10]. - The company has experienced a revenue CAGR of 30% from fiscal 2014 to 2024, driven by its next-gen security services [11]. - Palo Alto's business is insulated from tariffs as clients prioritize digital security, and its platformization strategy enhances its competitive position [12]. - Analysts expect a revenue CAGR of 15% from fiscal 2024 to 2027, with EPS growth projected at 24% over the following two years despite a dip in fiscal 2025 [13].

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]

Company Overview - VeriSign is a specialist in internet domain registration and has seen a positive stock performance recently, particularly after Berkshire Hathaway increased its stake in the company [1] - The company has a strong economic moat, which is a key factor in its business model and performance [1] Historical Performance - Investors who bought shares of VeriSign after its IPO in 1998 would have significantly increased their holdings due to two stock splits in 1999, resulting in four times the original shares for each purchased before 1999 [2][3] - VeriSign has maintained its exclusivity in holding registration rights for .com and .net domains, renewing its rights annually as long as it meets ICANN's criteria [4] Financial Performance - The company's revenue is projected to grow modestly by 4% in full-year 2024, reaching $1.56 billion [5] - Net income has shown more volatility, with a 21% increase in 2023 to $818 million, followed by a 4% decrease in 2024 to $786 million [5] - VeriSign combines modest growth with high profitability, which may not appeal to all investors despite its unique market position [6]

Financial Performance - The company recorded revenues of $1,557.4 million in 2024, representing a 4% increase compared to 2023[151] - Operating income for 2024 was $1,058.2 million, reflecting a 6% increase from the previous year[151] - Revenues from the U.S. market were $1,035.5 million, a 4% increase from 2023[162] - Total revenues for the year ended December 31, 2024, were $1,557.4 million, an increase of 4.3% compared to $1,493.1 million in 2023[218] - Net income for 2024 was $785.7 million, a decrease of 3.9% from $817.6 million in 2023[218] - Income before income taxes for 2024 was $1,021.9 million, compared to $976.5 million in 2023, reflecting a year-over-year increase of approximately 4.5%[293] Cash Flow and Liquidity - Cash flows from operating activities increased by 6% to $902.6 million in 2024[151] - Net cash provided by operating activities increased to $902.6 million in 2024 from $853.8 million in 2023[178] - Cash and cash equivalents decreased to $206.7 million in 2024 from $240.1 million in 2023, while marketable securities fell to $393.2 million from $686.3 million[174] - The company believes existing cash and marketable securities will be sufficient to meet working capital and capital expenditure requirements for the next 12 months[177] Share Repurchase and Stockholder Equity - The company repurchased 6.6 million shares for a total cost of $1.21 billion in 2024, with $1.02 billion remaining for future repurchases[151] - The company repurchased common stock totaling $1,225.6 million in 2024, compared to $901.4 million in 2023, reflecting a 36% increase[223] - Total stockholders' deficit at the end of 2024 was $(1,957.9) million, an increase from $(1,581.0) million in 2023[221] Expenses - Research and development expenses increased by 6% in 2024 to $96.7 million, compared to $91.0 million in 2023[164] - Selling, general and administrative expenses rose by 3% in 2024 to $211.1 million, up from $204.2 million in 2023[167] - The total income tax expense for 2024 was $236.2 million, up from $158.9 million in 2023, largely due to increased foreign current expenses[296] Registrations and Domain Performance - The total number of .com and .net registrations decreased by 2.1% to 169.0 million as of December 31, 2024[151] - The company processed 37.4 million new domain name registrations in 2024, down from 39.4 million in 2023[151] - The renewal rate for .com and .net domains was 72.2% in Q3 2024, compared to 73.5% in Q3 2023[151] Assets and Liabilities - Total assets decreased to $1,406.5 million in 2024 from $1,749.0 million in 2023, representing a decline of 19.6%[215] - Total liabilities increased to $3,364.4 million in 2024 from $3,330.0 million in 2023, an increase of 1.0%[215] - The company had $750.0 million in senior unsecured notes due 2031 and $500.0 million due April 2025, with plans to refinance the latter[176] Tax and Deferred Tax - The company recognized $281.3 million of deferred tax assets as of December 31, 2024, down from $301.0 million in 2023[201] - The Company had total deferred tax assets of $344.0 million as of December 31, 2024, down from $375.5 million in 2023[297] - The ending balance of gross unrecognized tax benefits as of December 31, 2024, was $6.5 million, a decrease from $9.6 million in 2023[300] Commitments and Obligations - Verisign's total minimum payment obligations amount to $2,114.5 million, which includes $2,023.1 million in Senior Notes and $67.1 million in purchase obligations for 2025[12] - The company has purchase obligations with telecommunication carriers and service providers, which are significant for its operations[304] - The company entered into a $200.0 million committed unsecured revolving credit facility in December 2023, with no borrowings outstanding as of December 31, 2024[272] Miscellaneous - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the audit opinion[208] - The company adopted ASU No. 2023-07, which did not have a material impact on the consolidated financial statements[252] - The company recognized net remeasurement gains of $14.7 million in 2023, with no significant gains or losses in 2024[238]