01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. (Nasdaq: VRSN) reported 2024 revenues of $1,557.4 milliona, up 4% from $1,493.1 million in 2023, and operating income of $1,058.2 million, up 6% from $1,000.6 million.
Net income was $785.7 millionb, compared with $817.6 million in 2023, and diluted EPS was $8.00 versus $7.90. The company operates the .com and .net registries and the Root Zone Maintainer function, and it operates two of the thirteen root servers. Revenue growth came mainly from the .com and .net price increases, partly offset by a decline in the .com and .net domain name base, which fell to 169.0 million registrations from 172.7 million at December 31, 2023.
The filing states that the .com renewal rate for the third quarter of 2024 was 72.2%, versus 73.5% a year earlier. Cash flow from operations rose to $902.6 millionc, up 6% from $853.8 million. The company repurchased 6.6 million shares for $1.21 billion in 2024 and had $1.02 billion remaining under its repurchase program at year end.
Cash and marketable securities totaled $599.9 milliond at December 31, 2024, down from $926.4 million. Total stockholders' deficit widened to $(1,957.9) million, and senior notes of $1,792.3 million net carrying value include $299.8 million classified as current, due April 2025. The company intends to refinance the 2025 notes with new long-term debt.
The .com Registry Agreement was renewed on November 25, 2024, through November 30, 2030. The filing notes that the company cannot raise .com prices during the first two years of the new term. Management also flags risks from China, where demand has declined, from cybersecurity and DDoS attacks, and from ongoing ICANN legal challenges over the .web gTLD, for which the company has paid a $145.0 million deposit.
02—Key points
Key Highlights
- Revenues rose 4% to $1,557.4 million in 2024, driven mainly by .com and .net price increases, while the .com and .net domain name base declined 2.1% to 169.0 million registrations.
- Operating income increased 6% to $1,058.2 million, and operating margin was 67.9% of revenues versus 67.0% in 2023.
- Net income fell to $785.7 million from $817.6 million, largely because income tax expense rose to $236.2 million from $158.9 million.
- Operating cash flow grew 6% to $902.6 million, and the company repurchased $1.21 billion of stock in 2024, leaving $1.02 billion available under the program.
- The .com Registry Agreement was renewed through November 30, 2030, and the filing states the company cannot increase .com prices during the first two years of the new term.
- Cash and marketable securities declined to $599.9 million from $926.4 million, and $299.8 million of senior notes due April 2025 are classified as current.
- Demand in China declined, and the filing describes ongoing Afilias IRP proceedings challenging the .web auction, with the company's $145.0 million deposit for .web still recorded as an asset.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Verisign kept $0.50.
- Revenue$1.56B100.0%
- Cost of revenue−$191.4M12.3%
- Gross profit$1.37B87.7%
- Operating costs−$307.8M19.8%
- Operating income$1.06B67.9%
- Interest, other & tax−$272.5M17.5%
- Net income$785.7M50.4%
Where FY2024 revenue went
$1.56B- Net income: $785.7M, 50% of revenue
- Interest, other & tax: $272.5M, 17% of revenue
- SG&A: $211.1M, 14% of revenue
- Cost of revenue: $191.4M, 12% of revenue
- R&D: $96.7M, 6.2% of revenue
Kept 50% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $1.56B$1.49B | +4.3% |
| Cost of Revenue | $191.40M$197.30M | −3.0% |
| Gross Profit | $1.37B$1.30B | +5.4% |
| R&D Expenses | $96.70M$91.00M | +6.3% |
| SG&A Expenses | $211.10M$204.20M | +3.4% |
| Operating Expenses | $499.20M$492.50M | +1.4% |
| Operating Income | $1.06B$1.00B | +5.8% |
| Interest Expense | $75.30M$75.30M | 0.0% |
| Net Income | $785.70M$817.60M | −3.9% |
| EPS (Basic) | $8.01$7.91 | +1.3% |
| EPS (Diluted) | $8.00$7.90 | +1.3% |
| Shares Outstanding (Basic) | 98.10M103.40M | −5.1% |
| Shares Outstanding (Diluted) | 98.20M103.50M | −5.1% |
05—Questions
Frequently Asked Questions
How did VeriSign's revenue and profitability change in 2024?
Revenues increased 4% to $1,557.4 million, and operating income rose 6% to $1,058.2 million. Net income decreased to $785.7 million from $817.6 million, mainly because income tax expense increased to $236.2 million from $158.9 million.
Why did the domain name base decline even though revenue grew?
The filing attributes revenue growth mainly to .com and .net price increases. It says competitive pressure from ccTLDs, other gTLDs, social media, and changes in registrant behavior, along with weaker demand in China and registrar marketing shifts, reduced the domain name base to 169.0 million, down from 172.7 million.
How is the company returning capital to shareholders and managing its debt?
In 2024 the company repurchased 6.6 million shares for $1.21 billion and had $1.02 billion remaining under its program at year end. It intends to refinance the $500.0 million of senior notes due April 2025 with new long-term debt and has a $200.0 million undrawn credit facility as a backstop.
What are the main risks the filing highlights for investors?
The filing highlights reliance on the .com and .net registry agreements, cybersecurity and DDoS attacks, changes in ICANN policies and pricing challenges, Chinese regulatory actions that reduced demand, and the ongoing .web IRP proceedings brought by Afilias.
06—Continue