Verisign Reports Second Quarter 2024 Results
“We delivered another solid quarter, both operationally and financially, by focusing on our mission. Last week we marked 27 years of providing 100% availability in the .com/.net domain name resolution system,” said
Financial Highlights
-
Verisign ended the second quarter of 2024 with cash, cash equivalents and marketable securities of$690 million , a decrease of$236 million from year-end 2023. -
Cash flow from operations was
$160 million for the second quarter of 2024, compared to$145 million for the same quarter of 2023. -
Deferred revenues as of
June 30, 2024 totaled$1.29 billion , an increase of$43 million from year-end 2023. -
During the second quarter of 2024,
Verisign repurchased 2.2 million shares of its common stock for an aggregate cost of$388 million . -
Effective
July 25, 2024 the Board of Directors approved an additional authorization for share repurchases of approximately$1.11 billion of common stock, which brings the total amount to$1.5 billion authorized and available under Verisign’s share repurchase program, which has no expiration.
Business Highlights
-
Verisign ended the second quarter of 2024 with 170.6 million .com and .net domain name registrations in the domain name base, a 2.2 percent decrease from the end of the second quarter of 2023, and a net decrease of 1.8 million domain names during the second quarter of 2024. -
During the second quarter of 2024,
Verisign processed 9.2 million new domain name registrations for .com and .net, compared with 10.2 million for the second quarter of 2023. - The final .com and .net renewal rate for the first quarter of 2024 was 74.1 percent compared to 75.5 percent for the same quarter of 2023. Renewal rates are not fully measurable until 45 days after the end of the quarter.
Today’s Conference Call
About
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
©2024
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CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value) (Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
252.2 |
|
|
$ |
240.1 |
|
|
Marketable securities |
|
437.7 |
|
|
|
686.3 |
|
|
Other current assets |
|
71.3 |
|
|
|
61.9 |
|
|
Total current assets |
|
761.2 |
|
|
|
988.3 |
|
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Property and equipment, net |
|
227.8 |
|
|
|
233.2 |
|
|
|
|
52.5 |
|
|
|
52.5 |
|
|
Deferred tax assets |
|
279.8 |
|
|
|
301.0 |
|
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Deposits to acquire intangible assets |
|
145.0 |
|
|
|
145.0 |
|
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Other long-term assets |
|
38.8 |
|
|
|
29.0 |
|
|
Total long-term assets |
|
743.9 |
|
|
|
760.7 |
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Total assets |
$ |
1,505.1 |
|
|
$ |
1,749.0 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable and accrued liabilities |
$ |
224.2 |
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|
$ |
257.4 |
|
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Deferred revenues |
|
967.1 |
|
|
|
931.1 |
|
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Total current liabilities |
|
1,191.3 |
|
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|
1,188.5 |
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Long-term deferred revenues |
|
321.6 |
|
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|
315.0 |
|
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Senior notes |
|
1,791.3 |
|
|
|
1,790.2 |
|
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Long-term tax and other liabilities |
|
17.3 |
|
|
|
36.3 |
|
|
Total long-term liabilities |
|
2,130.2 |
|
|
|
2,141.5 |
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Total liabilities |
|
3,321.5 |
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3,330.0 |
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Commitments and contingencies |
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Stockholders’ deficit: |
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Preferred stock—par value |
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— |
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— |
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Common stock and additional paid-in capital—par value |
|
11,179.9 |
|
|
|
11,808.0 |
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Accumulated deficit |
|
(12,993.5 |
) |
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|
(13,386.4 |
) |
|
Accumulated other comprehensive loss |
|
(2.8 |
) |
|
|
(2.6 |
) |
|
Total stockholders’ deficit |
|
(1,816.4 |
) |
|
|
(1,581.0 |
) |
|
Total liabilities and stockholders’ deficit |
$ |
1,505.1 |
|
|
$ |
1,749.0 |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, except per share data) (Unaudited) |
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
$ |
387.1 |
|
|
$ |
372.0 |
|
|
$ |
771.4 |
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|
$ |
736.4 |
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Costs and expenses: |
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|
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Cost of revenues |
|
47.1 |
|
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|
50.3 |
|
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|
96.2 |
|
|
|
100.2 |
|
|
Research and development |
|
23.8 |
|
|
|
22.2 |
|
|
|
48.6 |
|
|
|
46.4 |
|
|
Selling, general and administrative |
|
50.0 |
|
|
|
50.8 |
|
|
|
101.5 |
|
|
|
99.8 |
|
|
Total costs and expenses |
|
120.9 |
|
|
|
123.3 |
|
|
|
246.3 |
|
|
|
246.4 |
|
|
Operating income |
|
266.2 |
|
|
|
248.7 |
|
|
|
525.1 |
|
|
|
490.0 |
|
|
Interest expense |
|
(18.8 |
) |
|
|
(18.9 |
) |
|
|
(37.6 |
) |
|
|
(37.7 |
) |
|
Non-operating income, net |
|
11.5 |
|
|
|
12.7 |
|
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|
25.4 |
|
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|
24.0 |
|
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Income before income taxes |
|
258.9 |
|
|
|
242.5 |
|
|
|
512.9 |
|
|
|
476.3 |
|
|
Income tax expense |
|
(60.1 |
) |
|
|
(56.8 |
) |
|
|
(120.0 |
) |
|
|
(111.9 |
) |
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Net income |
|
198.8 |
|
|
|
185.7 |
|
|
|
392.9 |
|
|
|
364.4 |
|
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Other comprehensive loss |
|
— |
|
|
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
Comprehensive income |
$ |
198.8 |
|
|
$ |
185.0 |
|
|
$ |
392.7 |
|
|
$ |
363.7 |
|
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Earnings per share: |
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Basic |
$ |
2.01 |
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|
$ |
1.79 |
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|
$ |
3.93 |
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|
$ |
3.49 |
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Diluted |
$ |
2.01 |
|
|
$ |
1.79 |
|
|
$ |
3.93 |
|
|
$ |
3.49 |
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Shares used to compute earnings per share |
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Basic |
|
98.9 |
|
|
|
103.9 |
|
|
|
99.9 |
|
|
|
104.4 |
|
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Diluted |
|
99.0 |
|
|
|
104.0 |
|
|
|
99.9 |
|
|
|
104.5 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
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Six Months Ended |
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2024 |
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2023 |
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Cash flows from operating activities: |
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Net income |
$ |
392.9 |
|
|
$ |
364.4 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation of property and equipment |
|
19.1 |
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|
22.9 |
|
|
Stock-based compensation expense |
|
29.4 |
|
|
|
29.5 |
|
|
Amortization of discount on investments in debt securities |
|
(11.1 |
) |
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|
(9.3 |
) |
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Other, net |
|
1.6 |
|
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|
2.0 |
|
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Changes in operating assets and liabilities: |
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Other assets |
|
(19.2 |
) |
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|
(1.0 |
) |
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Other liabilities |
|
(58.8 |
) |
|
|
(48.7 |
) |
|
Deferred revenues |
|
42.6 |
|
|
|
41.5 |
|
|
Net deferred income taxes |
|
21.2 |
|
|
|
3.0 |
|
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Net cash provided by operating activities |
|
417.7 |
|
|
|
404.3 |
|
|
Cash flows from investing activities: |
|
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Proceeds from maturities and sales of marketable securities |
|
727.6 |
|
|
|
721.3 |
|
|
Purchases of marketable securities |
|
(468.1 |
) |
|
|
(697.6 |
) |
|
Purchases of property and equipment |
|
(13.0 |
) |
|
|
(12.2 |
) |
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Net cash provided by investing activities |
|
246.5 |
|
|
|
11.5 |
|
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Cash flows from financing activities: |
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Repurchases of common stock |
|
(660.2 |
) |
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|
(453.4 |
) |
|
Proceeds from employee stock purchase plan |
|
8.3 |
|
|
|
8.0 |
|
|
Net cash used in financing activities |
|
(651.9 |
) |
|
|
(445.4 |
) |
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Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
12.0 |
|
|
|
(29.8 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
245.5 |
|
|
|
379.0 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
257.5 |
|
|
$ |
349.2 |
|
|
Supplemental cash flow disclosures: |
|
|
|
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Cash paid for interest |
$ |
36.4 |
|
|
$ |
36.4 |
|
|
Cash paid for income taxes, net of refunds received |
$ |
138.6 |
|
|
$ |
132.4 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725059150/en/
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