Verisign(US:VRSN)2025-02-13 21:05Financial 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]