Verisign Reports First Quarter 2024 Results

Published

RESTON, Va.--(BUSINESS WIRE)-- VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the first quarter of 2024.

VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $384 million for the first quarter of 2024, up 5.5 percent from the same quarter in 2023. Operating income was $259 million for the first quarter of 2024, compared to $241 million for the same quarter of 2023. Verisign reported net income of $194 million and diluted earnings per share (diluted “EPS”) of $1.92 for the first quarter of 2024, compared to net income of $179 million and diluted EPS of $1.70 for the same quarter of 2023.

“These results mark another quarter of solid, consistent financial performance to start 2024,” said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.

Financial Highlights

  • Verisign ended the first quarter of 2024 with cash, cash equivalents and marketable securities of $925 million, a decrease of $2 million from year-end 2023.
  • Cash flow from operations was $257 million for the first quarter of 2024, compared to $259 million for the same quarter of 2023.
  • Deferred revenues as of March 31, 2024 totaled $1.28 billion, an increase of $39 million from year-end 2023.
  • During the first quarter of 2024, Verisign repurchased 1.3 million shares of its common stock for an aggregate cost of $260 million. As of March 31, 2024, there was $860 million remaining for future share repurchases under the share repurchase program, which has no expiration.

Business Highlights

  • Verisign ended the first quarter of 2024 with 172.5 million .com and .net domain name registrations in the domain name base, a 1.3 percent decrease from the end of the first quarter of 2023, and a net decrease of 0.27 million domain names during the first quarter of 2024.
  • During the first quarter of 2024, Verisign processed 9.5 million new domain name registrations for .com and .net, compared with 10.3 million for the first quarter of 2023.
  • The final .com and .net renewal rate for the fourth quarter of 2023 was 73.2 percent compared to 73.3 percent for the same quarter of 2022. Renewal rates are not fully measurable until 45 days after the end of the quarter.

Today’s Conference Call

Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the first quarter 2024 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (786) 789-4783 (international), conference ID: Verisign. A listen-only live web cast of the conference call and accompanying slide presentation will also be available at https://investor.verisign.com. An audio archive of the call will be available at https://investor.verisign.com/events.cfm. This news release and the financial information discussed on today’s conference call are available at https://investor.verisign.com.

About Verisign

Verisign (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, enables internet navigation for many of the world’s most recognized domain names. Verisign helps enable the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more please visit verisign.com.

VRSNF

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, attempted security breaches, cyber-attacks, and DDoS attacks against our systems and services; the introduction of undetected or unknown defects in our systems or services; vulnerabilities in the global routing system; system interruptions or system failures; damage or interruptions to our data centers, data center systems or resolution systems; risks arising from our operation of root servers and our performance of the Root Zone Maintainer functions; deterioration of economic conditions, particularly in China; our ability to compete in the highly competitive business environment in which we operate; any loss or modification of our right to operate the .com and .net gTLDs; changes or challenges to the pricing provisions of the .com Registry Agreement; new or existing governmental laws and regulations in the U.S. or other applicable non-U.S. jurisdictions; new laws, regulations, directives or ICANN policies that require us to obtain and maintain personal information of registrants; economic, legal, regulatory, and political risks associated with our international operations; unfavorable changes in, or interpretations of, tax rules and regulations; risks from the adoption of ICANN’s consensus and temporary policies, technical standards and other processes; the weakening of, changes to, the multi-stakeholder model of internet governance; the outcome of claims, lawsuits, audits or investigations; changes in internet practices and behavior and the adoption of substitute technologies, or the negative impact of wholesale price increases; our ability to expand our services into developing and emerging economies; our ability to maintain strong relationships with registrars and their resellers; our ability to attract, retain and motivate highly skilled employees; and our ability to protect and enforce our intellectual property rights. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended Dec. 31, 2023, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.

©2024 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.

 

VERISIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value)

(Unaudited)

 

 

March 31, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

731.8

 

 

$

240.1

 

Marketable securities

 

192.9

 

 

 

686.3

 

Other current assets

 

63.6

 

 

 

61.9

 

Total current assets

 

988.3

 

 

 

988.3

 

Property and equipment, net

 

227.2

 

 

 

233.2

 

Goodwill

 

52.5

 

 

 

52.5

 

Deferred tax assets

 

283.2

 

 

 

301.0

 

Deposits to acquire intangible assets

 

145.0

 

 

 

145.0

 

Other long-term assets

 

31.6

 

 

 

29.0

 

Total long-term assets

 

739.5

 

 

 

760.7

 

Total assets

$

1,727.8

 

 

$

1,749.0

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$

249.9

 

 

$

257.4

 

Deferred revenues

 

964.0

 

 

 

931.1

 

Total current liabilities

 

1,213.9

 

 

 

1,188.5

 

Long-term deferred revenues

 

320.8

 

 

 

315.0

 

Senior notes

 

1,790.7

 

 

 

1,790.2

 

Long-term tax and other liabilities

 

38.1

 

 

 

36.3

 

Total long-term liabilities

 

2,149.6

 

 

 

2,141.5

 

Total liabilities

 

3,363.5

 

 

 

3,330.0

 

Commitments and contingencies

 

 

 

Stockholders’ deficit:

 

 

 

Preferred stock—par value $.001 per share; Authorized shares: 5.0; Issued and outstanding shares: none

 

 

 

 

 

Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000; Issued shares: 355.1 at March 31, 2024 and 354.9 at December 31, 2023; Outstanding shares: 100.1 at March 31, 2024 and 101.3 at December 31, 2023

 

11,559.4

 

 

 

11,808.0

 

Accumulated deficit

 

(13,192.3

)

 

 

(13,386.4

)

Accumulated other comprehensive loss

 

(2.8

)

 

 

(2.6

)

Total stockholders’ deficit

 

(1,635.7

)

 

 

(1,581.0

)

Total liabilities and stockholders’ deficit

$

1,727.8

 

 

$

1,749.0

 

 
 

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions, except per share data)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Revenues

$

384.3

 

 

$

364.4

 

Costs and expenses:

 

 

 

Cost of revenues

 

49.1

 

 

 

49.9

 

Research and development

 

24.8

 

 

 

24.2

 

Selling, general and administrative

 

51.5

 

 

 

49.0

 

Total costs and expenses

 

125.4

 

 

 

123.1

 

Operating income

 

258.9

 

 

 

241.3

 

Interest expense

 

(18.8

)

 

 

(18.8

)

Non-operating income, net

 

13.9

 

 

 

11.3

 

Income before income taxes

 

254.0

 

 

 

233.8

 

Income tax expense

 

(59.9

)

 

 

(55.1

)

Net income

 

194.1

 

 

 

178.7

 

Other comprehensive loss

 

(0.2

)

 

 

 

Comprehensive income

$

193.9

 

 

$

178.7

 

 

 

 

 

Earnings per share:

 

 

 

Basic

$

1.93

 

 

$

1.70

 

Diluted

$

1.92

 

 

$

1.70

 

Shares used to compute earnings per share

 

 

 

Basic

 

100.8

 

 

 

104.9

 

Diluted

 

100.9

 

 

 

105.0

 

 
 

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net income

$

194.1

 

 

$

178.7

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation of property and equipment

 

9.8

 

 

 

11.6

 

Stock-based compensation expense

 

15.1

 

 

 

13.8

 

Amortization of discount on investments in debt securities

 

(7.0

)

 

 

(4.0

)

Other, net

 

1.0

 

 

 

1.1

 

Changes in operating assets and liabilities:

 

 

 

Other assets

 

(4.1

)

 

 

1.9

 

Other liabilities

 

(8.0

)

 

 

12.1

 

Deferred revenues

 

38.6

 

 

 

41.8

 

Net deferred income taxes

 

17.8

 

 

 

2.0

 

Net cash provided by operating activities

 

257.3

 

 

 

259.0

 

Cash flows from investing activities:

 

 

 

Proceeds from maturities and sales of marketable securities

 

658.0

 

 

 

562.0

 

Purchases of marketable securities

 

(157.8

)

 

 

(146.5

)

Purchases of property and equipment

 

(3.8

)

 

 

(5.7

)

Net cash provided by investing activities

 

496.4

 

 

 

409.8

 

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(269.9

)

 

 

(230.5

)

Proceeds from employee stock purchase plan

 

8.3

 

 

 

8.0

 

Net cash used in financing activities

 

(261.6

)

 

 

(222.5

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(0.4

)

 

 

(0.2

)

Net increase in cash, cash equivalents, and restricted cash

 

491.7

 

 

 

446.1

 

Cash, cash equivalents, and restricted cash at beginning of period

 

245.5

 

 

 

379.0

 

Cash, cash equivalents, and restricted cash at end of period

$

737.2

 

 

$

825.1

 

Supplemental cash flow disclosures:

 

 

 

Cash paid for interest

$

13.1

 

 

$

13.1

 

Cash paid for income taxes, net of refunds received

$

16.1

 

 

$

18.3

 

 

Investor Relations: David Atchley, datchley@verisign.com, 703-948-3447 Media Relations: David McGuire, davmcguire@verisign.com, 703-948-3800

Source: VeriSign, Inc.

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