Verisign(US:VRSN)2021-10-27 16:00Revenue and Registrations - For the three and nine months ended September 30, 2021, the company recorded revenues of $334.2 million and $987.3 million, representing increases of 5% and 4% compared to the same periods in 2020[46]. - The company had 172.1 million .com and .net registrations as of September 30, 2021, a 5% increase from 163.7 million registrations on September 30, 2020[53]. - Total revenues for the three months ended September 30, 2021, were $334,242,000, representing a 5% increase compared to $317,879,000 in the same period of 2020[57]. - U.S. revenues increased by 6% to $214,352,000 for the three months ended September 30, 2021, while revenues from China decreased by 10% to $24,607,000[57]. - The company expects quarterly revenues to continue to grow in the fourth quarter of 2021 due to the increase in .com domain names and the recent price increase[55]. Operating Income and Expenses - Operating income for the three and nine months ended September 30, 2021, was $221.3 million and $644.7 million, reflecting increases of 7% and 4% respectively compared to the same periods in 2020[46]. - Cost of revenues for the three months ended September 30, 2021, was $47,801,000, a 6% increase from $45,024,000 in the same period last year[59]. - Sales and marketing expenses rose by 12% to $9,410,000 for the three months ended September 30, 2021, compared to $8,389,000 in the same period of 2020[63]. - Research and development expenses remained consistent at $19,566,000 for the three months ended September 30, 2021, compared to $19,708,000 in the same period last year[66]. - General and administrative expenses decreased by 5% to $36,160,000 for the three months ended September 30, 2021, down from $38,109,000 in the same period of 2020[70]. - Interest expense decreased by $3.7 million for the three months ended September 30, 2021, compared to the same period last year, due to lower interest rates on the company's debt[73]. - The effective tax rate for the three months ended September 30, 2021, was 23%, compared to 8% in the same period of 2020[76]. Cash Flow and Financial Position - The company generated cash flows from operating activities of $600.9 million during the nine months ended September 30, 2021, compared to $535.0 million for the same period in 2020[50]. - Cash and cash equivalents as of September 30, 2021, were $256,869,000, down from $401,194,000 as of December 31, 2020[79]. - Marketable securities increased to $941,552,000 as of September 30, 2021, compared to $765,713,000 as of December 31, 2020[79]. - For the nine months ended September 30, 2021, net cash provided by operating activities was $600.9 million, an increase from $534.9 million in the same period last year[83]. - Cash received from customers increased due to higher domain name registrations and renewals, partially offset by increased cash paid to employees and vendors[85]. - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $148.1 million for the nine months ended September 30, 2021[83]. Share Repurchase and Debt Management - The company repurchased 0.8 million shares of common stock for an aggregate cost of $172.4 million during the three months ended September 30, 2021[50]. - During the three months ended September 30, 2021, the company repurchased 0.8 million shares for an aggregate cost of $172.4 million, with approximately $565.1 million remaining for future share repurchases[80]. - The company issued $750.0 million of 2.700% senior unsecured notes due June 15, 2031, and redeemed all $750.0 million of 4.625% senior notes due 2023[81]. - As of September 30, 2021, the company had no borrowings outstanding under its $200.0 million credit facility expiring in 2024[81]. - The company believes existing cash, cash equivalents, and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[82]. Market Conditions and Future Outlook - The renewal rate for .com and .net domains for the second quarter of 2021 was 75.4%, up from 72.8% in the second quarter of 2020[46]. - The company anticipates that the ongoing COVID-19 pandemic may continue to impact the demand for domain names as businesses seek to establish or expand their online presence[49]. - Net cash used in investing activities decreased to $215.1 million for the nine months ended September 30, 2021, compared to $305.8 million in the same period last year[83]. - Net cash used in financing activities decreased to $533.3 million for the nine months ended September 30, 2021, primarily due to proceeds from the issuance of the 2031 Notes[88].