Sector: Information Technology | Focus: Internet Services & Infrastructure
HQ: Dulles, Virginia
Financial Risks
VeriSign's financial performance is vulnerable to economic downturns, competition from other domain name providers (ccTLDs, other gTLDs, social media), changing internet user behavior, and domain name registrant motivations (resale, advertising). Decreased demand for domain names, lower renewal rates, and declining new registrations in China are potential risks. The company's reliance on .com and .net registrations makes it susceptible to market fluctuations. Potential refinancing issues for senior notes due in 2025 are also a risk.
Financial Upside
VeriSign's revenues increased 4% in the three months and 4% in the nine months ended September 30, 2024, compared to the same periods in 2023. Operating income increased 6% and 7% respectively. Cash flows from operating activities increased to $671.1 million in the nine months ended September 30, 2024. The company has $1.28 billion remaining for share repurchases. Price increases for .com and .net domain names are a revenue driver.
