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Verisign 8-K Report, Financial Results (Feb 8, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 8, 2024
Period End
February 8, 2024
Security
VRSN
In the record · 2016–202610-K1110-Q338-K94

VRSN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 94 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’17Jul ’17
  2. Leadership change8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Jun ’21Jun ’21
  4. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed February 8, 2024. Cited figures are marked; the original filing is the authoritative source.

VeriSign, Inc. reported fourth-quarter and full-year 2023 results on February 8, 2024.

Fourth-quarter revenue was $380 milliona, up 3.0 percent from the prior-year quarter, with operating income of $256 million and net income of $265 million, or diluted EPS of $2.60, compared with $1.70 a year earlier. For full-year 2023, revenue was $1.49 billion, up 4.8 percent, operating income was $1.00 billion, and net income was $818 million, or diluted EPS of $7.90, compared with $6.24 in 2022. The filing states that income tax benefits recognized in the fourth quarter increased net income by $69.3 million and diluted EPS by $0.68 for the quarter, and by $0.67 for the full year.

Cash flow and capital return remained central to the period. Cash flow from operations was $854 millionb for 2023, and the company ended the year with $926 million in cash, cash equivalents and marketable securities. Verisign repurchased 4.2 million shares for $883 million during 2023 and had $1.12 billion remaining under its repurchase program, which has no expiration date.

Deferred revenues totaled $1.25 billionc at year-end. Operating metrics were mixed. The .com and .net domain name base ended the year at 172.7 million registrations, a 0.6 percent decrease, with a net decrease of 1.2 million registrations in the fourth quarter.

The final .com and .net renewal rate for the third quarter of 2023 was 73.5 percent, versus 73.7 percent a year earlier. The company also announced that the annual registry-level wholesale fee for each new and renewal .com registration will rise from $9.59 to $10.26d, effective September 1, 2024.

02—Key points

Key Highlights

  1. Q4 2023 revenue of $380 million (up 3.0 percent) and net income of $265 million, with diluted EPS of $2.60 versus $1.70 in Q4 2022
  2. Full-year 2023 revenue of $1.49 billion (up 4.8 percent), net income of $818 million, and diluted EPS of $7.90 versus $6.24 in 2022
  3. Income tax benefits increased 2023 net income by $69.3 million and diluted EPS by $0.67 for the full year
  4. Cash flow from operations of $854 million for 2023; year-end cash, cash equivalents and marketable securities of $926 million
  5. Share repurchases of $883 million in 2023 (4.2 million shares), with $1.12 billion remaining under the program
  6. Domain base of 172.7 million .com and .net registrations, a 0.6 percent decrease; net decrease of 1.2 million in Q4 2023
  7. Registry-level wholesale fee for .com registrations to increase from $9.59 to $10.26, effective September 1, 2024

03—Questions

Frequently Asked Questions

  1. How did VeriSign perform in the fourth quarter and full year of 2023?

    Fourth-quarter revenue was $380 million, up 3.0 percent, and net income was $265 million, or $2.60 per diluted share. For the full year, revenue was $1.49 billion, up 4.8 percent, and net income was $818 million, or $7.90 per diluted share, compared with $6.24 in 2022.

  2. How much did tax benefits affect reported earnings?

    The filing states that income tax benefits from a step-up in tax basis of certain non-U.S. intellectual property, recognition of previously unrecognized tax benefits as statutes of limitations lapsed, and a beneficial change in state income apportionment rules increased net income by $69.3 million. This added $0.68 to diluted EPS for the fourth quarter and $0.67 for the full year.

  3. What is the company doing with its cash?

    Verisign repurchased 1.1 million shares for $223 million in the fourth quarter and 4.2 million shares for $883 million for the full year 2023. As of December 31, 2023, $1.12 billion remained under the repurchase program, which has no expiration date. Year-end cash, cash equivalents and marketable securities totaled $926 million.

  4. Are there any trends in domain registrations that investors should watch?

    The .com and .net domain base ended 2023 at 172.7 million registrations, a 0.6 percent decrease. The company processed 9.0 million new registrations in Q4 2023, down from 9.7 million a year earlier, and the final renewal rate for Q3 2023 was 73.5 percent, compared with 73.7 percent in Q3 2022.

  5. What pricing change did Verisign announce?

    Verisign will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from $9.59 to $10.26, effective September 1, 2024.

04—Continue

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