Core Viewpoint - Warren Buffett has shown a long-term interest in VeriSign, accumulating shares since 2012, and the company has performed well despite market pressures, with a stock increase of over 30% year to date [1] Company Overview - VeriSign is a provider of essential internet infrastructure, maintaining the database for registered domains under .com and .net, and offering DNS services to connect domains to IP addresses [2] - The company operates a monopoly on .com and .net domains through a long-term agreement with ICANN, earning a fixed fee for domain renewals [3] Business Model - VeriSign does not sell domains directly to consumers, which eliminates customer acquisition costs, and its back-end costs do not scale with revenue, leading to high gross margins [4] Financial Performance - In Q1 2025, VeriSign's revenue rose nearly 5% to $402.3 million, despite a 1.5% decline in .com and .net domain registrations [5] - The revenue increase was driven by a nearly 7% price hike for .com domains to $10.26, with the ability to raise prices up to 7% annually under its agreement with ICANN [6] - Gross margin improved to 87.7%, and earnings per share (EPS) increased by 9% to $2.10 [7] Cash Flow and Share Buybacks - The company generated free cash flow of $286 million in the quarter and spent $230 million to repurchase 1 million shares [8] Future Outlook - VeriSign expects its domain-name base to range from a decline of 0.7% to growth of 0.9%, an improvement from previous projections [8] - The company raised its revenue guidance for the year to $1.635 billion to $1.65 billion, up from $1.615 billion to $1.635 billion [9] Investment Appeal - The company's monopoly, built-in price increases, and lack of customer acquisition costs make it an attractive investment for long-term growth [10] - Despite a forward P/E ratio of 31, the stock remains within its typical valuation range [11] - The inability to increase .com prices in the near term may hinder growth, but the potential for .net price increases and increased marketing by registrars supports long-term growth prospects [13]