Verisign Q3 2021 results: revenue up 5.1%

VeriSign, Inc. (NASDAQ: VRSN) today reported financial results for the third quarter of 2021.

VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $334 million for the third quarter of 2021, up 5.1 percent from the same quarter in 2020. Verisign reported net income of $157 million and diluted earnings per share (diluted “EPS”) of $1.40 for the third quarter of 2021, compared to net income of $171 million and diluted EPS of $1.49 for the same quarter in 2020. The operating margin was 66.2 percent for the third quarter of 2021 compared to 65.0 percent for the same quarter in 2020.

Net income for the third quarter last year included the recognition of $24 million of previously unrecognized income tax benefits. These benefits resulted from remeasurement of Verisign’s accrual for uncertain tax positions as previously noted in the third quarter 2020 earnings release. This income tax benefit increased diluted EPS by $0.21 for the third quarter of 2020.

“Thanks to the dedication of our worldwide team, Verisign delivered on our mission, and delivered another quarter of solid results,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.

Financial Highlights

• Verisign ended the third quarter of 2021 with cash, cash equivalents and marketable securities of $1.20 billion, an increase of $32 million from the end of 2020.
• Cash flow from operating activities was $260 million for the third quarter of 2021, compared to $140 million for the same quarter in 2020.
• Deferred revenues as of Sept. 30, 2021 totaled $1.16 billion, an increase of $95 million from the end of 2020.
• During the third quarter of 2021, Verisign repurchased 0.8 million shares of its common stock for an aggregate cost of $172 million. As of Sept. 30, 2021, there was $565 million remaining for future share repurchases under the share repurchase program which has no expiration date.

Business Highlights

• Verisign ended the third quarter of 2021 with 172.1 million .com and .netdomain name registrations in the domain name base, a 5.1 percent increase from the end of the third quarter of 2020, and a net increase of 1.48 million during the third quarter of 2021.
• During the third quarter of 2021, Verisign processed 10.7 million new domain name registrations for .com and .net, compared to 10.9 million for the same quarter in 2020.
• The final .com and .net renewal rate for the second quarter of 2021 was 75.4 percent compared to 72.8 percent for the same quarter in 2020. Renewal rates are not fully measurable until 45 days after the end of the quarter.