VeriSign reports Q4 and full year 2023 results

VeriSign, Inc. 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.

Financ ial 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 .netdomain 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.