VeriSign reports 7.2% growth in Q2 2022 from the .com price increase

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

VeriSign reported a 7.2% growth in Q2 2022, (almost?) all of which came from the .com price increase in September 2021. Verisign increased the annual fee for each new and renewed .com domain name from $7.85 to $8.39, effective Sept. 1, 2021.

Thank you United States and Donald!

Here are more details:

VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $347 million for the first quarter of 2022, up 7.2 percent from the same quarter in 2021. Verisign reported net income of $158 million and diluted earnings per share (diluted “EPS”) of $1.43 for the first quarter of 2022, compared to net income of $150 million and diluted EPS of $1.33 for the same quarter of 2021. The operating margin was 64.8 percent for the first quarter of 2022 compared to 65.0 percent for the same quarter of 2021.

“As global reliance on online services continues to increase, so does the importance of delivering uninterrupted and accurate DNS resolution. Our focus remains on operating, protecting, and enhancing our critical internet infrastructure, and I thank all our employees who continuously execute our complex mission,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.

Financial Highlights

• Verisign ended the first quarter of 2022 with cash, cash equivalents and marketable securities of $1.21 billion, an increase of $4 million from year-end 2021.
• Cash flow from operations was $207 million for the first quarter of 2022, compared to $198 million for the same quarter of 2021.
• Deferred revenues as of March 31, 2022 totaled $1.18 billion, an increase of $28 million from year-end 2021.
• During the first quarter of 2022, Verisign repurchased 0.9 million shares of its common stock for an aggregate cost of $196 million. As of March 31, 2022, there was $893 million remaining for future share repurchases under the share repurchase program which has no expiration date.

Business Highlights

• Verisign ended the first quarter of 2022 with 174.7 million .com and .net domain name registrations in the domain name base, a 4.0 percent increase from the end of the first quarter of 2021, and a net increase of 1.23 million during the first quarter of 2022.
• During the first quarter of 2022, Verisign processed 10.2 million new domain name registrations for .com and .net, as compared to 11.6 million for the same quarter of 2021.
• The final .com and .net renewal rate for the fourth quarter of 2021 was 74.8 percent compared to 73.5 percent for the same quarter of 2020. Renewal rates are not fully measurable until 45 days after the end of the quarter.