Verisign(US:VRSN)2025-10-23 21:30Financial Data and Key Metrics Changes - VeriSign reported revenue of $419 million for Q3 2025, representing a 7.3% increase year-over-year [8] - Net income for the quarter was $213 million, compared to $207 million in the previous quarter and $201 million in Q3 2024 [8] - Diluted EPS increased to $2.27 from $2.21 in the previous quarter and $2.07 a year ago [8] - Operating cash flow was $308 million, and free cash flow was $303 million, up from $253 million and $248 million respectively in the same quarter last year [8] 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][5] - The renewal rate for Q3 2025 is expected to be 75.3%, an increase from 72.2% a year ago [5][17] 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][15] - The growth in the domain name base is expected to be between 2.2% and 2.5% for 2025 [5] Company Strategy and Development Direction - The company continues to focus on enhancing registrar engagement and adapting marketing programs to improve domain name base trends [10][14] - Plans for 2026 programs have been rolled out, incorporating feedback from registrars to refine strategies [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of demand for domain names, attributing it to effective marketing strategies and favorable cyclical shifts [10][18] - The impact of AI on the business is seen as positive, with increased registrations and utilization of DNS services [23][24] Other Important Information - The company returned $287 million to shareholders through dividends and share repurchases during the quarter [4][6] - A cash dividend of $0.77 per share was declared, 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 [13][14] Question: Impact of Google AdSense changes - Management indicated that changes to Google AdSense have minimal impact on their business, as the trend of reducing reliance on ad monetization has been ongoing for years [19][20] Question: AI's impact on the business - AI is positively influencing registrations and DNS utilization, with the company leveraging AI for domain name suggestions and operational efficiencies [22][23][25] Question: Update on .web and new TLDs - No significant updates on .web; the final hearing is scheduled for mid-November 2025, and ICANN's new gTLD round is expected to open in Q2 2026 [38][40]