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Verisign 8-K Report, Financial Results (Jul 25, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed July 25, 2024
Period End
July 25, 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 July 25, 2024. Cited figures are marked; the original filing is the authoritative source.

VeriSign, Inc. reported results for the fiscal quarter ended June 30, 2024 in a press release attached as Exhibit 99.1 to this Form 8-K, filed July 25, 2024.

Revenue was $387 milliona, up 4.1 percent from the second quarter of 2023. Operating income was $266 million, compared with $249 million a year earlier. Net income was $199 million and diluted EPS was $2.01, versus $186 million and $1.79 in the prior-year quarter.

Cash flow from operations was $160 millionb for the quarter, compared with $145 million a year earlier. Capital return was a central theme. During the second quarter the company repurchased 2.2 million shares for an aggregate cost of $388 million.

Effective July 25, 2024, the Board authorized an additional repurchase of approximately $1.11 billionc of common stock. Combined with the roughly $388.0 million remaining under the program, total authorization is up to $1.5 billion. The program has no expiration date and may be executed through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions.

Operating metrics were mixed. The .com and .net domain name base ended the quarter at 170.6 million registrations, a 2.2 percent decrease from the end of the second quarter of 2023, with a net decrease of 1.8 million domain names during the quarter. New registrations processed were 9.2 million, compared with 10.2 million a year earlier.

The final renewal rate for the first quarter of 2024 was 74.1 percent, versus 75.5 percent for the same quarter of 2023. Cash, cash equivalents and marketable securities totaled $690 milliond at June 30, 2024, down $236 million from year-end 2023, and the balance sheet showed a total stockholders' deficit of $1.82 billion.

02—Key points

Key Highlights

  1. Revenue of $387 million for Q2 2024, up 4.1 percent from Q2 2023 ($372.0 million).
  2. Operating income of $266 million (vs. $249 million in Q2 2023); net income of $199 million; diluted EPS of $2.01 (vs. $1.79).
  3. Repurchased 2.2 million shares for $388 million in Q2 2024; six-month repurchases of common stock totaled $660.2 million in cash flow.
  4. Board authorized an additional ~$1.11 billion of repurchases effective July 25, 2024, bringing total available authorization to $1.5 billion with no expiration date.
  5. The .com and .net domain name base fell to 170.6 million, a 2.2 percent decrease year over year, with a net loss of 1.8 million domains in the quarter.
  6. New .com and .net registrations declined to 9.2 million from 10.2 million in Q2 2023; the first-quarter 2024 final renewal rate was 74.1 percent versus 75.5 percent a year earlier.
  7. Cash, cash equivalents and marketable securities were $690 million at June 30, 2024, down $236 million from year-end 2023, and total stockholders' deficit was $1.82 billion.

03—Questions

Frequently Asked Questions

  1. How did Verisign perform financially in the second quarter of 2024?

    Revenue rose 4.1 percent to $387 million, operating income increased to $266 million from $249 million, and net income reached $199 million, or $2.01 per diluted share, compared with $186 million and $1.79 a year earlier. Cash flow from operations was $160 million, up from $145 million.

  2. How much is Verisign authorized to repurchase, and how is the program structured?

    The Board authorized an additional approximately $1.11 billion effective July 25, 2024. Together with the approximately $388.0 million remaining, total authorization is up to $1.5 billion. The program has no expiration date and can be executed through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions.

  3. What trends are visible in the domain name business?

    The .com and .net domain name base ended the quarter at 170.6 million registrations, down 2.2 percent from a year earlier, with a net decrease of 1.8 million domains during the quarter. New registrations fell to 9.2 million from 10.2 million, and the final renewal rate for the first quarter of 2024 was 74.1 percent compared with 75.5 percent a year earlier.

  4. What is the company's liquidity and balance sheet position?

    At June 30, 2024, cash and cash equivalents were $252.2 million and marketable securities were $437.7 million, a combined $690 million, down $236 million from year-end 2023. Senior notes were $1.79 billion, and total stockholders' deficit was $1.82 billion. Deferred revenues totaled $1.29 billion, an increase of $43 million from year-end 2023.

04—Continue

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