VeriSign, Inc. recorded a notable financial performance in the second quarter of 2023. The company reported a total revenue of $372 million, showcasing an increase of 5.7% compared to the same quarter in 2022.
Verisign’s operating income for the second quarter of 2023 reached $249 million, surpassing the figure from the same quarter in 2022, which was $236 million.
In terms of net income, Verisign achieved $186 million for the second quarter of 2023, indicating substantial growth from the $167 million reported in the same quarter of the previous year. The company’s diluted earnings per share (EPS) also exhibited a positive trend, with $1.79 in the second quarter of 2023, compared to $1.54 for the same period in 2022.
These financial results showcase Verisign’s continued success and financial stability, reflecting the company’s effectiveness in navigating the market and delivering value to its stakeholders.
Financial highlights:
By the end of the second quarter of 2023, Verisign exhibited a robust financial position with $936 million in cash, cash equivalents, and marketable securities. This figure represented a decrease of $45 million from the year-end balance in 2022.
The company’s cash flow from operations remained steady, reaching $145 million for the second quarter of 2023, the same as the corresponding quarter in 2022.
Furthermore, Verisign experienced growth in deferred revenues, which amounted to $1.26 billion as of June 30, 2023. This marked an increase of $41 million from the year-end balance in 2022, indicating positive developments in the company’s revenue recognition and future earnings potential.
During the second quarter of 2023, Verisign displayed confidence in its own financial strength by repurchasing 1.0 million shares of its common stock, at an aggregate cost of $220 million. This strategic move not only underscores the company’s belief in its value but also enhances shareholder returns.
In a further display of commitment to shareholders, Verisign’s Board of Directors approved an additional share repurchase authorization of approximately $1.14 billion of common stock, effective from July 27, 2023. This approval brings the total amount authorized and available under Verisign’s share repurchase program to $1.5 billion, which does not have an expiration date. This move highlights the company’s dedication to delivering value to its shareholders and reinforces its long-term financial strength.
View the full report for Q2/2023 (PDF.)
Business highlights:
On June 30, 2023, Verisign made a significant announcement regarding the .net Registry Agreement with the Internet Corporation for Assigned Names and Numbers (ICANN). As a result of this renewal, Verisign will continue to serve as the sole registry operator for the .net domain registry until June 30, 2029.
As of the end of the second quarter of 2023, Verisign’s domain name base included a total of 174.4 million .com and .net domain name registrations. This represented a slight increase of 0.1 percent from the end of the second quarter of 2022. However, during the second quarter of 2023, there was a net decrease of 0.32 million domain names.
Throughout the second quarter of 2023, Verisign processed a total of 10.2 million new domain name registrations for .com and .net, showing a marginal increase compared to the 10.1 million registrations during the same quarter in 2022.
The final renewal rate for .com and .net domain names during the first quarter of 2023 stood at 75.5 percent, slightly lower than the 75.9 percent recorded during the same quarter of the previous year. Renewal rates are typically assessed 45 days after the end of the quarter, which accounts for any potential adjustments.
Verisign has also announced its decision to implement a price increase for each new and renewal .net domain name registration. The annual registry-level wholesale fee for .net domain names will be raised from $9.92 to $10.91, effective from February 1, 2024.
These developments indicate Verisign’s continued commitment to the management and operation of essential domain registries while considering adjustments to pricing to sustain its services effectively.
View the full earnings presentation (PDF.)
