Verisign(VRSN) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for the three months ended March 31, 2025, were $402.3 million, representing a 5$384.3 million in the same period of 2024[46] - Operating income for the same period was $271.2 million, also a 5$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$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$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$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]