VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical
internet infrastructure and domain name registry services, today
reported financial results for the third quarter of 2023.
VeriSign, Inc. and its subsidiaries (“Verisign”) reported
revenue of $376 million for the third quarter of 2023, up 5.4
percent from the same quarter in 2022. Operating income was $254
million for the third quarter of 2023, compared to $237 million for
the same quarter of 2022. Verisign reported net income of $188
million and diluted earnings per share (diluted “EPS”) of $1.83 for
the third quarter of 2023, compared to net income of $169 million
and diluted EPS of $1.58 for the same quarter of 2022.
“We remain focused on our long-term strategy of value creation
and return to shareholders through responsible expense management
and efficient capital allocation, which has produced another solid
quarter,” said Jim Bidzos, Executive Chairman and Chief Executive
Officer.
Financial Highlights
- Verisign ended the third quarter of 2023 with cash, cash
equivalents and marketable securities of $943 million, a decrease
of $37 million from year-end 2022.
- Cash flow from operations was $245 million for the third
quarter of 2023, compared to $262 million for the same quarter of
2022.
- Deferred revenues as of Sept. 30, 2023 totaled $1.26 billion,
an increase of $43 million from year-end 2022.
- During the third quarter of 2023, Verisign repurchased 1.1
million shares of its common stock for an aggregate cost of $220
million. As of Sept. 30, 2023, there was $1.34 billion remaining
for future share repurchases under the share repurchase program,
which has no expiration.
Business Highlights
- Verisign ended the third quarter of 2023 with 173.9 million
.com and .net domain name registrations in the domain name base, a
0.1 percent decrease from the end of the third quarter of 2022, and
a net decrease of 0.5 million domain names during the third quarter
of 2023.
- During the third quarter of 2023, Verisign processed 9.9
million new domain name registrations for .com and .net, the same
as for the third quarter last year.
- The final .com and .net renewal rate for the second quarter of
2023 was 73.4 percent compared to 73.8 percent for the same quarter
of 2022. Renewal rates are not fully measurable until 45 days after
the end of the quarter.
Today’s Conference Call
Verisign will host a live conference call today at 4:30 p.m.
(EDT) to review the third quarter 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 and Current Reports
on Form 8-K. Verisign undertakes no obligation to update any of the
forward-looking statements after the date of this announcement.
©2023 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.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions, except par
value)
(Unaudited)
September 30,
2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
157.7
$
373.6
Marketable securities
785.8
606.8
Other current assets
63.5
58.3
Total current assets
1,007.0
1,038.7
Property and equipment, net
238.2
232.0
Goodwill
52.5
52.5
Deferred tax assets
224.1
234.6
Deposits to acquire intangible assets
145.0
145.0
Other long-term assets
29.1
30.6
Total long-term assets
688.9
694.7
Total assets
$
1,695.9
$
1,733.4
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued
liabilities
$
232.2
$
226.5
Deferred revenues
941.4
890.4
Total current liabilities
1,173.6
1,116.9
Long-term deferred revenues
320.7
328.7
Senior notes
1,789.6
1,787.9
Long-term tax and other liabilities
45.4
62.1
Total long-term liabilities
2,155.7
2,178.7
Total liabilities
3,329.3
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; Issued
shares: 354.8 at September 30, 2023 and 354.5 at December 31, 2022;
Outstanding shares: 102.4 at September 30, 2023 and 105.3 at
December 31, 2022
12,020.7
12,644.5
Accumulated deficit
(13,651.1
)
(14,204.0
)
Accumulated other comprehensive loss
(3.0
)
(2.7
)
Total stockholders’ deficit
(1,633.4
)
(1,562.2
)
Total liabilities and stockholders’
deficit
$
1,695.9
$
1,733.4
VERISIGN, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except per share
data)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenues
$
376.3
$
356.9
$
1,112.7
$
1,055.7
Costs and expenses:
Cost of revenues
48.6
50.0
148.8
150.2
Research and development
21.7
21.0
68.1
64.2
Selling, general and administrative
51.7
49.1
151.5
143.7
Total costs and expenses
122.0
120.1
368.4
358.1
Operating income
254.3
236.8
744.3
697.6
Interest expense
(18.8
)
(18.8
)
(56.5
)
(56.5
)
Non-operating income, net
13.1
4.9
37.1
6.8
Income before income taxes
248.6
222.9
724.9
647.9
Income tax expense
(60.1
)
(53.4
)
(172.0
)
(153.6
)
Net income
188.5
169.5
552.9
494.3
Other comprehensive income (loss)
0.4
0.2
(0.3
)
0.1
Comprehensive income
$
188.9
$
169.7
$
552.6
$
494.4
Earnings per share:
Basic
$
1.83
$
1.58
$
5.32
$
4.55
Diluted
$
1.83
$
1.58
$
5.32
$
4.55
Shares used to compute earnings per
share
Basic
102.9
107.1
103.9
108.7
Diluted
103.0
107.1
104.0
108.7
VERISIGN, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating activities:
Net income
$
552.9
$
494.3
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of property and equipment
33.7
35.2
Stock-based compensation expense
45.0
44.2
Other, net
(15.6
)
0.7
Changes in operating assets and
liabilities:
Other assets
(3.7
)
(2.5
)
Accounts payable and accrued
liabilities
(16.2
)
(40.1
)
Deferred revenues
43.0
82.1
Net deferred income taxes
10.5
0.3
Net cash provided by operating
activities
649.6
614.2
Cash flows from investing activities:
Proceeds from maturities and sales of
marketable securities
750.8
1,475.0
Purchases of marketable securities
(911.5
)
(909.3
)
Purchases of property and equipment
(40.8
)
(19.7
)
Net cash (used in) provided by investing
activities
(201.5
)
546.0
Cash flows from financing activities:
Repurchases of common stock
(675.8
)
(834.0
)
Proceeds from employee stock purchase
plan
12.3
12.3
Net cash used in financing activities
(663.5
)
(821.7
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(0.6
)
(1.4
)
Net (decrease) increase in cash, cash
equivalents, and restricted cash
(216.0
)
337.1
Cash, cash equivalents, and restricted
cash at beginning of period
379.0
228.8
Cash, cash equivalents, and restricted
cash at end of period
$
163.0
$
565.9
Supplemental cash flow disclosures:
Cash paid for interest
$
49.5
$
49.6
Cash paid for income taxes, net of refunds
received
$
178.8
$
159.6
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026756868/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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