Verisign reports Q2 2022 results ($352 million revenue)

VeriSign, Inc. (NASDAQ: VRSN) reported financial results for the second quarter of 2022.

VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $352 million for the second quarter of 2022, up 6.8 percent from the same quarter in 2021. Verisign reported net income of $167 million and diluted earnings per share (diluted “EPS”) of $1.54 for the second quarter of 2022, compared to net income of $148 million and diluted EPS of $1.31 for the same quarter of 2021. The operating margin was 67.1 percent for the second quarter of 2022 compared to 64.7 percent for the same quarter of 2021.

“Our mission of enabling the world to connect online with reliability and confidence remains our primary focus throughout changing times. I’m pleased to note that we crossed a significant milestone in that mission last week for our critical internet infrastructure by marking 25 years of 100% availability in the .com/.net domain name resolution system,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.

Financial Highlights

• Verisign ended the second quarter of 2022 with cash, cash equivalents and marketable securities of $997 million, a decrease of $209 million from year-end 2021.
• Cash flow from operations was $145 million for the second quarter of 2022, compared to $143 million for the same quarter of 2021.
• Deferred revenues as of June 30, 2022 totaled $1.18 billion, an increase of $28 million from year-end 2021.
• During the second quarter of 2022, Verisign repurchased 2.0 million shares of its common stock for an aggregate cost of $349 million. As of June 30, 2022, there was $543 million remaining for future share repurchases under the share repurchase program which has no expiration date.

Business Highlights

• Verisign ended the second quarter of 2022 with 174.3 million .com and .netdomain name registrations in the domain name base, a 2.2 percent increase from the end of the second quarter of 2021, and a net decrease of 0.35 million domain names during the second quarter of 2022.
• During the second quarter of 2022, Verisign processed 10.1 million new domain name registrations for .com and .net, as compared to 11.7 million for the same quarter of 2021.
• The final .com and .net renewal rate for the first quarter of 2022 was 75.9 percent compared to 76.0 percent for the same quarter of 2021. 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 .net domain name registration from $9.02 to $9.92, effective Feb. 1, 2023.