Verisign(US:VRSN)2025-02-07 00:22Financial Data and Key Metrics Changes - In 2024, the company achieved a revenue growth of 4.3% year-over-year, with total revenue reaching $1.557 billion [9][17] - Operating income increased by 5.7% to $1.058 billion for the year [17] - The diluted earnings per share for Q4 2024 was $2, down from $2.60 in Q4 2023, primarily due to a prior year tax benefit [18] - The company reported a decrease in shares outstanding by 6.2% from the end of 2023 [9] Business Line Data and Key Metrics Changes - The domain name base in .com and .net totaled 169 million, a decrease of 2.1% year-over-year [11] - New registrations in Q4 2024 were 9.5 million, an increase from 9 million in Q4 2023 [12] - The renewal rate for Q4 2024 is expected to be approximately 73.9%, showing improvement [12] Market Data and Key Metrics Changes - The domain name base decreased from both US and China-based registrars, while EMEA saw an increase [13] - The decline in the China registrar segment is expected to slow, now representing only 5% of the domain name base [14] Company Strategy and Development Direction - The company aims to reengage registrars on new customer acquisition through new marketing programs for .com and .net [15] - For 2025, the company expects a slight decline in the domain name base but anticipates improved trends compared to 2024 [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the adoption of new marketing programs and a potential return to growth in the domain name base [33][34] - The company is focused on maintaining strong relationships with regulatory bodies like ICANN and NTIA, emphasizing security and stability [46][47] Other Important Information - The company returned $1.2 billion to shareholders through share repurchases in 2024 [11] - Operating cash flow for Q4 2024 was $232 million, with free cash flow at $222 million [19] Q&A Session Summary Question: Insights on domain base and macro factors - Management indicated that while the domain name base is expected to continue decreasing in 2025, there are signs of improvement due to easing trends from China and the adoption of new marketing programs [31][34] Question: Details on marketing programs and regional traction - Management noted that it is early to assess the full impact of marketing programs, but positive feedback has been received from registrars [40][41] Question: Impact of leadership changes in DC - Management believes that the long-standing policies regarding security and stability will remain unaffected by new leadership in DC [45][46] Question: Update on .web and interest in new TLDs - The company remains interested in being the registry operator for .web and is considering applications for new TLDs, although no specific plans have been finalized [78][80]