Verisign Reports Third Quarter 2024 Results
“By continuing to deliver on our mission of maintaining the security, stability, and resiliency of the critical internet infrastructure we operate, we deliver for all our stakeholders,” said
Financial Highlights
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Verisign ended the third quarter of 2024 with cash, cash equivalents and marketable securities of$645 million , a decrease of$281 million from year-end 2023. -
Cash flow from operations was
$253 million for the third quarter of 2024, compared to$245 million for the same quarter of 2023. -
Deferred revenues as of
Sept. 30, 2024 totaled$1.30 billion , an increase of$53 million from year-end 2023. -
During the third quarter of 2024,
Verisign repurchased 1.7 million shares of its common stock for an aggregate cost of$301 million . As ofSept. 30, 2024 , there was$1.28 billion remaining for future share repurchases under the share repurchase program, which has no expiration.
Business Highlights
-
Verisign ended the third quarter of 2024 with 169.6 million .com and .net domain name registrations in the domain name base, a 2.5 percent decrease from the end of the third quarter of 2023, and a net decrease of 1.1 million domain names during the third quarter of 2024. -
During the third quarter of 2024,
Verisign processed 9.3 million new domain name registrations for .com and .net, compared with 9.9 million for the third quarter of 2023. - The final .com and .net renewal rate for the second quarter of 2024 was 72.7 percent compared to 73.4 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
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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2024 |
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2023 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
267.3 |
|
|
$ |
240.1 |
|
|
Marketable securities |
|
377.6 |
|
|
|
686.3 |
|
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Other current assets |
|
72.5 |
|
|
|
61.9 |
|
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Total current assets |
|
717.4 |
|
|
|
988.3 |
|
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Property and equipment, net |
|
224.8 |
|
|
|
233.2 |
|
|
|
|
52.5 |
|
|
|
52.5 |
|
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Deferred tax assets |
|
285.7 |
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|
301.0 |
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Deposits to acquire intangible assets |
|
145.0 |
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|
|
145.0 |
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Other long-term assets |
|
36.6 |
|
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|
29.0 |
|
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Total long-term assets |
|
744.6 |
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|
760.7 |
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Total assets |
$ |
1,462.0 |
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$ |
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 |
$ |
255.5 |
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$ |
257.4 |
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Deferred revenues |
|
971.0 |
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|
|
931.1 |
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Current senior notes |
|
299.7 |
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— |
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Total current liabilities |
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1,526.2 |
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|
1,188.5 |
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Long-term deferred revenues |
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328.0 |
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315.0 |
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Long-term senior notes |
|
1,492.2 |
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|
1,790.2 |
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Long-term tax and other liabilities |
|
16.2 |
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|
36.3 |
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Total long-term liabilities |
|
1,836.4 |
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|
2,141.5 |
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Total liabilities |
|
3,362.6 |
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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 |
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10,894.0 |
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11,808.0 |
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Accumulated deficit |
|
(12,792.2 |
) |
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|
(13,386.4 |
) |
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Accumulated other comprehensive loss |
|
(2.4 |
) |
|
|
(2.6 |
) |
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Total stockholders’ deficit |
|
(1,900.6 |
) |
|
|
(1,581.0 |
) |
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Total liabilities and stockholders’ deficit |
$ |
1,462.0 |
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$ |
1,749.0 |
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Three Months Ended
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Nine 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 |
$ |
390.6 |
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|
$ |
376.3 |
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$ |
1,162.0 |
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$ |
1,112.7 |
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Costs and expenses: |
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Cost of revenues |
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46.8 |
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|
48.6 |
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|
143.0 |
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|
|
148.8 |
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Research and development |
|
23.2 |
|
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|
21.7 |
|
|
|
71.8 |
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|
|
68.1 |
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Selling, general and administrative |
|
51.3 |
|
|
|
51.7 |
|
|
|
152.8 |
|
|
|
151.5 |
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Total costs and expenses |
|
121.3 |
|
|
|
122.0 |
|
|
|
367.6 |
|
|
|
368.4 |
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Operating income |
|
269.3 |
|
|
|
254.3 |
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|
|
794.4 |
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|
744.3 |
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Interest expense |
|
(18.9 |
) |
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|
(18.8 |
) |
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|
(56.5 |
) |
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|
(56.5 |
) |
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Non-operating income, net |
|
10.5 |
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|
13.1 |
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|
35.9 |
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|
37.1 |
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Income before income taxes |
|
260.9 |
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|
248.6 |
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|
773.8 |
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|
724.9 |
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Income tax expense |
|
(59.6 |
) |
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|
(60.1 |
) |
|
|
(179.6 |
) |
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|
(172.0 |
) |
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Net income |
|
201.3 |
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|
188.5 |
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|
|
594.2 |
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|
552.9 |
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Other comprehensive income (loss) |
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0.4 |
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|
0.4 |
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|
0.2 |
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(0.3 |
) |
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Comprehensive income |
$ |
201.7 |
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|
$ |
188.9 |
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|
$ |
594.4 |
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|
$ |
552.6 |
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Earnings per share: |
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Basic |
$ |
2.07 |
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$ |
1.83 |
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$ |
6.00 |
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|
$ |
5.32 |
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Diluted |
$ |
2.07 |
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|
$ |
1.83 |
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|
$ |
6.00 |
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$ |
5.32 |
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Shares used to compute earnings per share |
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Basic |
|
97.3 |
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|
102.9 |
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|
99.0 |
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|
103.9 |
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Diluted |
|
97.3 |
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|
|
103.0 |
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|
|
99.1 |
|
|
|
104.0 |
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Nine 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 |
$ |
594.2 |
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|
$ |
552.9 |
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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 |
|
28.1 |
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|
33.7 |
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Stock-based compensation expense |
|
45.2 |
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|
|
45.0 |
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Amortization of discount on investments in debt securities |
|
(16.6 |
) |
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|
(18.6 |
) |
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Other, net |
|
2.1 |
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|
3.0 |
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Changes in operating assets and liabilities: |
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Other assets |
|
(18.2 |
) |
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|
(3.7 |
) |
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Other liabilities |
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(31.9 |
) |
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|
(16.2 |
) |
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Deferred revenues |
|
52.9 |
|
|
|
43.0 |
|
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Net deferred income taxes |
|
15.3 |
|
|
|
10.5 |
|
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Net cash provided by operating activities |
|
671.1 |
|
|
|
649.6 |
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Cash flows from investing activities: |
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Proceeds from maturities and sales of marketable securities |
|
1,009.6 |
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|
|
750.8 |
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Purchases of marketable securities |
|
(684.0 |
) |
|
|
(911.5 |
) |
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Purchases of property and equipment |
|
(18.6 |
) |
|
|
(40.8 |
) |
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Net cash provided by (used in) investing activities |
|
307.0 |
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|
|
(201.5 |
) |
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Cash flows from financing activities: |
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Repurchases of common stock |
|
(963.3 |
) |
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|
(675.8 |
) |
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Proceeds from employee stock purchase plan |
|
12.3 |
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|
12.3 |
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Net cash used in financing activities |
|
(951.0 |
) |
|
|
(663.5 |
) |
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Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
0.1 |
|
|
|
(0.6 |
) |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
27.2 |
|
|
|
(216.0 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
245.5 |
|
|
|
379.0 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
272.7 |
|
|
$ |
163.0 |
|
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Supplemental cash flow disclosures: |
|
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Cash paid for interest |
$ |
49.5 |
|
|
$ |
49.5 |
|
|
Cash paid for income taxes, net of refunds received |
$ |
187.1 |
|
|
$ |
178.8 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024803224/en/
Investor Relations:
datchley@verisign.com
703-948-3447
Media Relations:
davmcguire@verisign.com
703-948-3800
Source: