Verisign reports Q4 and full year 2024 results

VeriSign, Inc. (NASDAQ: VRSN) reported financial results for the fourth quarter and full year 2024.

Fourth Quarter Financial Results

VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of $395 million for the fourth quarter of 2024, up 3.9 percent from the same quarter in 2023. Operating income was $264 million for the fourth quarter of 2024, compared to $256 million for the same quarter of 2023. Verisign reported net income of $191 million and diluted earnings per share (diluted “EPS”) of $2.00 for the fourth quarter of 2024, compared to net income of $265 million and diluted EPS of $2.60 for the same quarter in 2023. Net income for the fourth quarter of 2023 included the recognition of certain income tax benefits that were noted in the Q4 2023 earnings release issued on Feb. 8, 2024, which increased net income by $69.3 million and increased diluted EPS by $0.68.

2024 Financial Results

Verisign reported revenue of $1.56 billion for 2024, up 4.3 percent from 2023. Operating income was $1.06 billion for 2024 compared to $1.00 billion in 2023. Verisign reported net income of $786 million and diluted EPS of $8.00 for 2024, compared to net income of $818 million and diluted EPS of $7.90 in 2023. Net income for the full year of 2023 included the recognition of certain income tax benefits, noted above, which increased net income by $69.3 million and increased diluted EPS by $0.67.

“In 2024 we extended our unparalleled record of uninterrupted availability for .com and .net resolution to more than 27 years. We also successfully renewed our .com registry agreement with ICANN and the Cooperative Agreement with the National Telecommunications and Information Administration,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.

Financial Highlights

• Verisign ended 2024 with cash, cash equivalents, and marketable securities of $600 million, a decrease of $326 million from year-end 2023.
• Cash flow from operations was $232 million for the fourth quarter of 2024 and $903 million for the full year of 2024 compared with $204 million for the same quarter in 2023 and $854 million for the full year of 2023.
• Deferred revenues as of Dec. 31, 2024, totaled $1.30 billion, an increase of $58 million from year-end 2023.
• During the fourth quarter of 2024, Verisign repurchased 1.4 million shares of its common stock for $260 million. During the full year of 2024, Verisign repurchased 6.6 million shares of its common stock for $1.21 billion. As of Dec. 31, 2024, there was $1.02 billion remaining for future share repurchases under the share repurchase program which has no expiration date.

Business Highlights

• On Nov. 27, 2024, Verisign announced the renewal of the .com Registry Agreement with the Internet Corporation for Assigned Names and Numbers (ICANN), pursuant to which Verisign will remain the sole registry operator for the .com registry through Nov. 30, 2030.
• On Nov. 29, 2024, the National Telecommunications and Information Administration (NTIA) announced the renewal of the Cooperative Agreement with Verisign for a six-year term.
• Verisign ended the fourth quarter of 2024 with 169.0 million .com and .net domain name registrations in the domain name base, a 2.1 percent decrease from the end of the fourth quarter of 2023, and a net decrease of 0.5 million registrations during the fourth quarter of 2024.
• In the fourth quarter of 2024, Verisign processed 9.5 million new domain name registrations for .com and .net, as compared to 9.0 million for the same quarter in 2023.
• The final .com and .net renewal rate for the third quarter of 2024 was 72.2 percent compared to 73.5 percent for the same quarter in 2023. Renewal rates are not fully measurable until 45 days after the end of the quarter.