Verisign reported Q4 and full year 2022 results

VeriSign, Inc. (NASDAQ: VRSN) reported financial results for the fourth quarter and full year 2022.

Fourth Quarter Financial Results

VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of $369 million for the fourth quarter of 2022, up 8.5 percent from the same quarter in 2021. The operating margin was 66.5 percent for the fourth quarter of 2022 compared to 65.3 percent for the same quarter of 2021. Verisign reported net income of $179 million and diluted earnings per share (diluted “EPS”) of $1.70 for the fourth quarter of 2022, compared to net income of $330 million and diluted EPS of $2.97 for the same quarter in 2021. Net income for the fourth quarter of 2021 included recognition of a deferred income tax benefit related to the transfer of certain non-US intellectual property between subsidiaries which increased net income by $165.5 million and increased diluted EPS by $1.49.

2022 Financial Results

Verisign reported revenue of $1.42 billion for 2022, up 7.3 percent from 2021. The operating margin for 2022 was 66.2 percent compared to 65.3 percent in 2021. Verisign reported net income of $674 million and diluted EPS of $6.24 for 2022, compared to net income of $785 million and diluted EPS of $7.00 in 2021. Net income for 2021 included the recognition of a deferred income tax benefit related to the transfer of certain non-US intellectual property between subsidiaries which increased net income by $165.5 million and increased diluted EPS by $1.48.

“In 2022, we marked 25 years of uninterrupted availability for our global .com and .net resolution infrastructure. We also delivered solid financial performance for the quarter and the full year,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.

Financial Highlights

• Verisign ended 2022 with cash, cash equivalents, and marketable securities of $980 million, a decrease of $225 million from year-end 2021.
• Cash flow from operations was $217 million for the fourth quarter of 2022 and $831 million for the full year of 2022 compared with $206 million for the same quarter in 2021 and $807 million for the full year of 2021.
• Deferred revenues as of Dec. 31, 2022, totaled $1.22 billion, an increase of $66 million from year-end 2021.
• During the fourth quarter of 2022, Verisign repurchased 1.1 million shares of its common stock for $212 million. During the full year of 2022, Verisign repurchased 5.5 million shares of its common stock for $1.03 billion. As of Dec. 31, 2022, there was $859 million remaining for future share repurchases under the share repurchase program which has no expiration date.

Business Highlights

• Verisign ended the fourth quarter of 2022 with 173.8 million .com and .netdomain name registrations in the domain name base, a 0.2 percent increase from the end of the fourth quarter of 2021, and a net decrease of 0.4 million registrations during the fourth quarter of 2022.
• In the fourth quarter of 2022, Verisign processed 9.7 million new domain name registrations for .com and .net, as compared to 10.6 million for the same quarter in 2021.
• The final .com and .net renewal rate for the third quarter of 2022 was 73.7 percent compared to 75.0 percent for the same quarter in 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 .com domain name registration from $8.97 to $9.59, effective Sept. 1, 2023.