01—Abstract
Summary
Summary of the 8-K filed October 24, 2024. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. reported third quarter 2024 results on October 24, 2024.
Revenue was $391 milliona, up 3.8 percent from the same quarter of 2023. Operating income rose to $269 million from $254 million, net income was $201 million versus $188 million, and diluted EPS was $2.07 compared with $1.83. Cash flow from operations was $253 million, compared with $245 million a year earlier.
The company ended the quarter with cash, cash equivalents and marketable securities of $645 millionb, a decrease of $281 million from year-end 2023. Deferred revenues totaled $1.30 billion, up $53 million from year-end 2023. Verisign repurchased 1.7 million shares for $301 million during the quarter and had $1.28 billion remaining under its share repurchase program, which has no expiration.
On the business side, the .com and .net domain name base stood at 169.6 million registrations, a 2.5 percent decrease from the end of the third quarter of 2023 and a net decrease of 1.1 million during the quarter. New registrations processed were 9.3 million, compared with 9.9 million a year earlier, and the final second-quarter 2024 renewal rate was 72.7 percent versus 73.4 percent for the same quarter of 2023.
02—Key points
Key Highlights
- Revenue of $391 million for Q3 2024, up 3.8 percent year over year
- Operating income of $269 million, up from $254 million in Q3 2023
- Diluted EPS of $2.07 versus $1.83 a year earlier; net income of $201 million versus $188 million
- Repurchased 1.7 million shares for $301 million in the quarter; $1.28 billion remains under the no-expiration program
- Domain name base of 169.6 million .com and .net registrations, down 2.5 percent year over year, with a net decrease of 1.1 million in the quarter
- New .com and .net registrations of 9.3 million versus 9.9 million a year earlier
- Cash, cash equivalents and marketable securities of $645 million, down $281 million from year-end 2023; deferred revenues of $1.30 billion, up $53 million
03—Questions
Frequently Asked Questions
How did VeriSign perform financially in the third quarter of 2024?
Revenue reached $391 million, up 3.8 percent from the third quarter of 2023. Operating income was $269 million, net income was $201 million, and diluted EPS was $2.07, all higher than the prior-year quarter's $254 million, $188 million and $1.83, respectively.
Is the domain name base growing?
No. The base ended the quarter at 169.6 million .com and .net registrations, a 2.5 percent decrease from the end of the third quarter of 2023, with a net decrease of 1.1 million domain names during the quarter. The company processed 9.3 million new registrations, compared with 9.9 million a year earlier.
How is VeriSign returning capital to shareholders?
During the quarter, Verisign repurchased 1.7 million shares of common stock for an aggregate cost of $301 million. As of September 30, 2024, $1.28 billion remained available under the share repurchase program, which has no expiration.
What is the company's liquidity position?
Cash, cash equivalents and marketable securities totaled $645 million at September 30, 2024, down $281 million from year-end 2023. Cash flow from operations was $253 million in the quarter, compared with $245 million a year earlier. Deferred revenues were $1.30 billion, up $53 million from year-end 2023.
What is the renewal rate trend?
The final .com and .net renewal rate for the second quarter of 2024 was 72.7 percent, compared with 73.4 percent for the same quarter of 2023. The filing notes that renewal rates are not fully measurable until 45 days after the end of the quarter.
04—Continue