VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical
internet infrastructure and domain name registry services, today
reported financial results for the fourth quarter and full year
2023.
Fourth Quarter Financial Results
VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of
$380 million for the fourth quarter of 2023, up 3.0 percent from
the same quarter in 2022. Operating income was $256 million for the
fourth quarter of 2023, compared to $245 million for the same
quarter of 2022. Verisign reported net income of $265 million and
diluted earnings per share (diluted “EPS”) of $2.60 for the fourth
quarter of 2023, compared to net income of $179 million and diluted
EPS of $1.70 for the same quarter in 2022. Net income for the
fourth quarter of 2023 included the recognition of income tax
benefits related to a step-up in tax basis of certain non-U.S.
intellectual property, recognition of previously unrecognized
income tax benefits as the related statutes of limitations lapsed,
and a beneficial change in certain state income apportionment
rules. Cumulatively, these income tax benefits increased net income
by $69.3 million and increased diluted EPS by $0.68.
2023 Financial Results
Verisign reported revenue of $1.49 billion for 2023, up 4.8
percent from 2022. Operating income was $1.00 billion for 2023
compared to $943 million in 2022. Verisign reported net income of
$818 million and diluted EPS of $7.90 for 2023, compared to net
income of $674 million and diluted EPS of $6.24 in 2022. Net income
for the full year of 2023 included the recognition of income tax
benefits noted above, which increased net income by $69.3 million
and increased diluted EPS by $0.67.
“In 2023 we continued to execute on our mission, extending our
record of uninterrupted availability for our global .com and .net
resolution infrastructure to more than 26 years. We also delivered
solid financial performance both for the quarter and the full
year,” said Jim Bidzos, Executive Chairman and Chief Executive
Officer.
Financial
Highlights
- Verisign ended 2023 with cash, cash equivalents, and marketable
securities of $926 million, a decrease of $54 million from year-end
2022.
- Cash flow from operations was $204 million for the fourth
quarter of 2023 and $854 million for the full year of 2023 compared
with $217 million for the same quarter in 2022 and $831 million for
the full year of 2022.
- Deferred revenues as of Dec. 31, 2023, totaled $1.25 billion,
an increase of $27 million from year-end 2022.
- During the fourth quarter of 2023, Verisign repurchased 1.1
million shares of its common stock for $223 million. During the
full year of 2023, Verisign repurchased 4.2 million shares of its
common stock for $883 million. As of Dec. 31, 2023, there was $1.12
billion remaining for future share repurchases under the share
repurchase program which has no expiration date.
Business Highlights
- Verisign ended the fourth quarter of 2023 with 172.7 million
.com and .net domain name registrations in the domain name base, a
0.6 percent decrease from the end of the fourth quarter of 2022,
and a net decrease of 1.2 million registrations during the fourth
quarter of 2023.
- In the fourth quarter of 2023, Verisign processed 9.0 million
new domain name registrations for .com and .net, as compared to 9.7
million for the same quarter in 2022.
- The final .com and .net renewal rate for the third quarter of
2023 was 73.5 percent compared to 73.7 percent for the same quarter
in 2022. Renewal rates are not fully measurable until 45 days after
the end of the quarter.
- Verisign announces that it will increase the annual
registry-level wholesale fee for each new and renewal .com domain
name registration from $9.59 to $10.26, effective Sept. 1,
2024.
Today’s Conference Call
Verisign will host a live conference call today at 4:30 p.m.
(EST) to review the fourth quarter and full year 2023 results. The
call will be accessible by direct dial at (888) 676-VRSN (U.S.) or
(786) 789-4797 (international), conference ID: Verisign. A
listen-only live web cast of the conference call and accompanying
slide presentation will also be available at
https://investor.verisign.com. An audio archive of the call will be
available at https://investor.verisign.com/events.cfm. This news
release and the financial information discussed on today’s
conference call are available at https://investor.verisign.com.
About Verisign
Verisign (NASDAQ: VRSN), a global provider of critical internet
infrastructure and domain name registry services, enables internet
navigation for many of the world’s most recognized domain names.
Verisign helps enable the security, stability, and resiliency of
the Domain Name System and the internet by providing root zone
maintainer services, operating two of the 13 global internet root
servers, and providing registration services and authoritative
resolution for the .com and .net top-level domains, which support
the majority of global e-commerce. To learn more please visit
verisign.com.
VRSNF
Statements in this announcement other than historical data and
information constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 as amended and
Section 21E of the Securities Exchange Act of 1934 as amended.
These statements involve risks and uncertainties that could cause
our actual results to differ materially from those stated or
implied by such forward-looking statements. The potential risks and
uncertainties include, among others, attempted security breaches,
cyber-attacks, and DDoS attacks against our systems and services;
the introduction of undetected or unknown defects in our systems or
services; vulnerabilities in the global routing system; system
interruptions or system failures; damage or interruptions to our
data centers, data center systems or resolution systems; risks
arising from our operation of root servers and our performance of
the Root Zone Maintainer functions; any loss or modification of our
right to operate the .com and .net gTLDs; changes or challenges to
the pricing provisions of the .com Registry Agreement; new or
existing governmental laws and regulations in the U.S. or other
applicable non-U.S. jurisdictions; new laws, regulations,
directives or ICANN policies that require us to obtain and maintain
personal information of registrants; economic, legal, regulatory,
and political risks associated with our international operations;
unfavorable changes in, or interpretations of, tax rules and
regulations; risks from the adoption of ICANN’s consensus and
temporary policies, technical standards and other processes; the
weakening of, changes to, the multi-stakeholder model of internet
governance; the outcome of claims, lawsuits, audits or
investigations; deterioration of economic conditions; our ability
to compete in the highly competitive business environment in which
we operate; changes in internet practices and behavior and the
adoption of substitute technologies, or the negative impact of
wholesale price increases; our ability to expand our services into
developing and emerging economies; our ability to maintain strong
relationships with registrars and their resellers; our ability to
attract, retain and motivate highly skilled employees; and our
ability to protect and enforce our intellectual property rights.
More information about potential factors that could affect our
business and financial results is included in our filings with the
SEC, including in our Annual Report on Form 10-K for the year ended
Dec. 31, 2022, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K and, when filed, our Annual Report on Form 10-K for the
year ended Dec. 31, 2023. Verisign undertakes no obligation to
update any of the forward-looking statements after the date of this
announcement.
©2024 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN
logo, and other trademarks, service marks, and designs are
registered or unregistered trademarks of VeriSign, Inc. and its
subsidiaries in the United States and in foreign countries. All
other trademarks are property of their respective owners.
VERISIGN, INC.
CONSOLIDATED BALANCE
SHEETS
(In millions, except par
value)
(Unaudited)
December 31,
2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
240.1
$
373.6
Marketable securities
686.3
606.8
Other current assets
61.9
58.3
Total current assets
988.3
1,038.7
Property and equipment, net
233.2
232.0
Goodwill
52.5
52.5
Deferred tax assets
301.0
234.6
Deposits to acquire intangible assets
145.0
145.0
Other long-term assets
29.0
30.6
Total long-term assets
760.7
694.7
Total assets
$
1,749.0
$
1,733.4
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued
liabilities
$
257.4
$
226.5
Deferred revenues
931.1
890.4
Total current liabilities
1,188.5
1,116.9
Long-term deferred revenues
315.0
328.7
Senior notes
1,790.2
1,787.9
Long-term tax and other liabilities
36.3
62.1
Total long-term liabilities
2,141.5
2,178.7
Total liabilities
3,330.0
3,295.6
Commitments and contingencies
Stockholders’ deficit:
Preferred stock—par value $.001 per share;
Authorized shares: 5.0; Issued and outstanding shares: none
—
—
Common stock and additional paid-in
capital—par value $.001 per share; Authorized shares: 1,000.0;
Issued shares: 354.9 at December 31, 2023 and 354.5 at December 31,
2022; Outstanding shares: 101.3 at December 31, 2023 and 105.3 at
December 31, 2022
11,808.0
12,644.5
Accumulated deficit
(13,386.4
)
(14,204.0
)
Accumulated other comprehensive loss
(2.6
)
(2.7
)
Total stockholders’ deficit
(1,581.0
)
(1,562.2
)
Total liabilities and stockholders’
deficit
$
1,749.0
$
1,733.4
VERISIGN, INC.
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME
(In millions, except per share
data)
(Unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
2023
2022
Revenues
$
380.4
$
369.2
$
1,493.1
$
1,424.9
Costs and expenses:
Cost of revenues
48.5
50.5
197.3
200.7
Research and development
22.9
21.5
91.0
85.7
Selling, general and administrative
52.7
51.7
204.2
195.4
Total costs and expenses
124.1
123.7
492.5
481.8
Operating income
256.3
245.5
1,000.6
943.1
Interest expense
(18.8
)
(18.8
)
(75.3
)
(75.3
)
Non-operating income, net
14.1
5.6
51.2
12.4
Income before income taxes
251.6
232.3
976.5
880.2
Income tax benefit (expense)
13.1
(52.8
)
(158.9
)
(206.4
)
Net income
264.7
179.5
817.6
673.8
Other comprehensive income
0.4
—
0.1
0.1
Comprehensive income
$
265.1
$
179.5
$
817.7
$
673.9
Earnings per share:
Basic
$
2.60
$
1.70
$
7.91
$
6.24
Diluted
$
2.60
$
1.70
$
7.90
$
6.24
Shares used to compute earnings per
share
Basic
101.8
105.8
103.4
107.9
Diluted
102.0
105.9
103.5
108.0
VERISIGN, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In millions)
(Unaudited)
Year Ended
December 31,
2023
2022
Cash flows from operating activities:
Net income
$
817.6
$
673.8
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of property and equipment
44.1
46.9
Stock-based compensation expense
59.7
58.6
Amortization of discount on investments in
debt securities
(27.8
)
(7.7
)
Other, net
3.3
3.8
Changes in operating assets and
liabilities:
Other assets
(1.5
)
9.5
Other liabilities
(2.2
)
(13.3
)
Deferred revenues
27.0
65.7
Net deferred income taxes
(66.4
)
(6.2
)
Net cash provided by operating
activities
853.8
831.1
Cash flows from investing activities:
Proceeds from maturities and sales of
marketable securities
1,278.9
1,721.5
Purchases of marketable securities
(1,330.5
)
(1,338.4
)
Purchases of property and equipment
(45.8
)
(27.4
)
Net cash (used in) provided by investing
activities
(97.4
)
355.7
Cash flows from financing activities:
Repurchases of common stock
(901.4
)
(1,048.1
)
Proceeds from employee stock purchase
plan
12.3
12.3
Other financing activities
(0.7
)
—
Net cash used in financing activities
(889.8
)
(1,035.8
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(0.1
)
(0.8
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(133.5
)
150.2
Cash, cash equivalents, and restricted
cash at beginning of period
379.0
228.8
Cash, cash equivalents, and restricted
cash at end of period
$
245.5
$
379.0
Supplemental cash flow disclosures:
Cash paid for interest
$
72.8
$
72.8
Cash paid for income taxes, net of refunds
received
$
239.7
$
211.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208580804/en/
Investor Relations: David Atchley, datchley@verisign.com,
703-948-3447 Media Relations: David McGuire,
davmcguire@verisign.com, 703-948-3800
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