Financial Data and Key Metrics Changes - VeriSign reported revenue of $419 million for Q3 2025, representing a 7.3% increase year-over-year [7] - Net income for the quarter was $213 million, compared to $201 million in Q3 2024, reflecting a year-over-year increase [7] - Diluted EPS increased to $2.27 from $2.07 a year ago, marking a 9.7% rise [7] - Operating cash flow was $308 million, while free cash flow reached $303 million, both up from $248 million in the same quarter last year [7] Business Line Data and Key Metrics Changes - The domain name base for .com and .net reached 171.9 million, up 1.4% year-over-year, with 10.6 million new registrations in the quarter [4] - The renewal rate for Q3 2025 is expected to be 75.3%, an increase from 72.2% a year ago, indicating improved customer retention [5][15] Market Data and Key Metrics Changes - The domain name base grew sequentially across three main regions, with the U.S. and EMEA showing the strongest growth [5] - The company anticipates a domain name base growth of 2.2% to 2.5% for the full year 2025 [5] Company Strategy and Development Direction - VeriSign continues to focus on enhancing registrar engagement and adapting marketing programs to improve domain name demand [9][10] - The company plans to roll out updated programs for 2026 based on feedback from registrars, aiming for higher quality and renewing names [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive trends observed in domain name registrations and renewals, attributing this to effective marketing strategies and favorable market conditions [9][10] - The company views AI as a significant driver for future growth, enhancing both registrations and DNS resolution services [22][24] Other Important Information - VeriSign returned $287 million to shareholders through dividends and share repurchases during the quarter [4] - The Board declared a cash dividend of $0.77 per share, payable on November 25, 2025 [6] Q&A Session Summary Question: Insights on domain name base trends and marketing programs - Management noted improvements in domain name base trends due to enhanced marketing programs and registrar engagement, with a cyclical shift contributing to growth [12][13] Question: Impact of Google AdSense changes - Management indicated that changes to Google AdSense have been part of a long-term trend, with minimal impact on their business model focused on domain resale rather than ad monetization [17][18] Question: AI's impact on the business - AI is positively influencing registrations and DNS services, with the company leveraging AI for domain name suggestions and operational efficiencies [21][22] Question: Marketing program effectiveness and spending - Management confirmed that marketing programs have contributed to growth, with adjustments made for 2026 based on registrar feedback [28][30] Question: Update on .web and new TLD auctions - The timeline for .web remains unchanged, with a final hearing scheduled for mid-November 2025, and ICANN's new gTLD round expected to open in Q2 2026 [40][51]