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Tue, Jan. 5, 1:37 PM
- After initially seeing just modest losses, VeriSign (NASDAQ:VRSN) has sold off in the wake of a downgrade to Sell from Citi.
- The downgrade follows a 2015 in which the domain name and Web security service provider's shares rose 53% amid healthy domain registration activity. VeriSign currently trades for 23x a 2016 EPS consensus of $3.46.
- Q4 results arrive on Feb. 11.
Jul. 24, 2015, 7:09 PM
- Verisign (NASDAQ:VRSN) rallied today after slightly beating Q2 revenue estimates (and slightly missing on EPS). Shares made a fresh high of $70.99 before paring their gains amid a market selloff.
- On its earnings call (transcript), the domain name/Web security service provider guided for 2015 revenue of $1.045B-$1.055B (+3.5%-4.5% Y/Y), in-line with a $1.05B consensus. Full-year gross margin is still expected to be at least 80%.
- Key metrics: 520K net new domain names were added in Q2, leading the total base to rise to 133.5M. 8.7M new .com and .net registrations were processed, flat Q/Q and up 200K Y/Y. The .com/.net renewal rate was 73.4%, up from 72.5% in Q1 and 72.6% a year ago, and the deferred revenue balance rose by $7M Q/Q to $932M.
- Financials: GAAP costs/expenses rose 6% Y/Y to $113.6M (compares with 5% rev. growth). $156M was spent to buy back 2.5M shares. Verisign ended Q2 with $1.9B in cash/investments, and a similar amount of debt.
- Q2 results, PR
Apr. 24, 2015, 5:37 PM
Apr. 24, 2015, 12:00 PM
- With shares having gone into earnings just $0.52 away from a high of $68.25 (reached on Thursday), Verisign's (NASDAQ:VRSN) slight Q1 miss isn't going over well. On its CC (transcript), the domain name/authentication services firm narrowed its 2015 revenue guidance to $1.043B-$1.057B from $1.04B-$1.06B. Op. margin guidance of 60%-62%, gross margin guidance of "at least 80%," and domain name growth of 2%-3.5% was reiterated.
- Verisign has also announced the hiring of Todd Strubbe, formerly an exec at CRM outsourcing firm West Corporation, to be its COO.
- 1.5M net new domain names were added in Q1, +3.1% Y/Y and bringing the total .com/.net base to 133M. 8.7M new .com/.net domain name registrations were processed vs. 8.6M a year ago; the renewal rate rose 30 bps to 72.5%.
- The deferred revenue balance rose $35M Q/Q to $925M. $160M was spent to buy back 2.7M shares.
- Q1 results, PR
Feb. 6, 2015, 12:54 PM
- Verisign (NASDAQ:VRSN) guided on its Q4 CC (transcript) for 2015 revenue of $1.04B-$1.06B (3%-5% growth), slightly unfavorable to a $1.06B consensus. However, that's better than feared given concerns about weakening .com domain name registration revenue.
- Meanwhile, the company expects 2015 op. margin to be in a 60%-62% range vs. 60.2% in 2014, and gross margin to be at least 80%. Domain name revenue is expected to rise 2%-3.5%.
- Also: Verisign has added $453M to its buyback authorization, bringing its total size back up to $1B. $209M was spent on buybacks in Q4, and $867M over the whole of 2014.
- Verisign saw only 590K net new domain name adds in Q4 (gross registrations totaled 8.2M), below guidance of 700K-1.2M and contributing to the Q4 miss. However, net adds are expected to rise to 1M-1.5M in Q1. The renewal rate (though fluctuating a bit) remains around 72%.
- 2014 free cash flow was $568M, well above net income of $383M.The deferred revenue balance rose 3% during the year to $890M.
- Q4 results, PR, earnings slides (.pdf)
Jan. 26, 2015, 11:40 AM
- Four days after JPMorgan downgraded Verisign (NASDAQ:VRSN), Credit Suisse has cut the site authentication/doman name service provider to Underperform. Its target is $47.50.
- Like JPMorgan, CS sites the potential for slowing domain name revenue growth. It's also critical of Verisign's relative valuation. Q4 results arrive on Feb. 5.
Jul. 25, 2014, 12:45 PM
Jul. 25, 2014, 11:30 AM
- Though Verisign (NASDAQ:VRSN) missed Q2 revenue estimates (while beating on EPS), it guided on its CC (transcript) for full-year revenue of $1.003B-$1.012B, in-line with a $1.01B consensus. In addition, full-year op. margin guidance was hiked by 100 bps to 59%-61%.
- $300M was spent on buybacks in Q2, fueling the EPS beat. Verisign is adding $491M to its buyback authorization, raising its size to $1B. The company has $1.5B in cash to finance buybacks with.
- Q2 domain name net adds totaled 420K, towards the low end of a 300K-800K guidance range. But Verisign expects net adds to grow to 600K-1.1M in Q3.
- Total active .com/.net domain names amounted to 128.9M at the end of Q2, +3.7% Y/Y. However, processed domain names slipped by 200K Y/Y to 8.5M, and the company discloses renewal rate fell 60 bps in Q1 to 72.6%. The deferred revenue balance is up $35M YTD to $890M.
- Q2 results, PR
Jun. 27, 2014, 11:06 AM| Jun. 27, 2014, 11:06 AM
Jun. 24, 2014, 9:53 AM
- Web.com (WWWW) and Endurance International (EIGI) are plummeting following Google's launch of a domain name registration service aimed at small businesses.
- Meanwhile, Google launch partner Wix.com (WIX) is going in the opposite direction. The company announced this morning its registered user base has topped 50M, and that 3M+ mobile sites have been built on its platform.
- B. Riley has cut Web.com to Neutral. Its PT is still at $40.
- Verisign (VRSN +0.7%), which runs the domain name registries for .com, .net, and other major suffixes, is up moderately.
Mar. 17, 2014, 9:43 AM
- VMware (VMW +2.2%) has been started at Buy by Monness Crespi.
- SAP (SAP +2.2%) has been upgraded to Buy by Citi.
- VeriSign (VRSN -8.8%) has been cut to Market Perform by Cowen. The downgrade comes as the NTIA announces it will relinquish control of the Internet's domain name management system to an international body. VeriSign insists the move won't affect its operation of the .com and .net registries.
- CommVault (CVLT +3.3%) has been upgraded to Buy by Mizuho.
- RingCentral (RNG +4.5%) has been started at Outperform by William Blair.
- NetScout (NTCT +0.1%) has been cut to Neutral by D.A. Davidson.
- RPX (RPXC +3%) has been started at Outperform by Cowen.
- Cadence (CDNS +1.4%) has been started at Overweight by Piper.
Mar. 17, 2014, 9:09 AM
Feb. 7, 2014, 5:57 PM
- Though Verisign (VRSN -4.9%) beat Q4 estimates, the company guided on its CC (transcript) for 2014 revenue of $1B-$1.02B; the midpoint is slightly below a $1.02B consensus. The domain name registrar/site authentication provider also guided for a 2014 op. margin of 58%-60%; that compares with a 2013 level of 58.5% (up 230 bps Y/Y).
- Citing margin growth concerns, Citi's Walter Pritchard has cut shares to sell. "Margin surprises had been a driver of the stock and investors continue to expect this ... However, margins appear to be approaching a ceiling."
- In tandem with its results, Verisign has announced it will repatriate $700M-$800M worth of cash in Q2 or Q3 in "a tax-efficient manner" by leveraging a $375.3M income tax benefit it recorded in Q4 related to the liquidation of a domestic subsidiary.
- The company also says its board has approved increasing Verisign's buyback by $528M to $1B (good for repurchasing 14% of shares at current levels).
- Verisign's deferred revenue rose by $43M in 2013 to $856M, and the number of active .com/.net domain names handled by its registry business rose 5% to 127.2M.
Feb. 7, 2014, 5:38 PM
Apr. 25, 2013, 4:22 PMVeriSign (VRSN): Q1 EPS of $0.58 beats by $0.03. Revenue of $236M (+15% Y/Y) beats by $3.37M. Shares +3% AH. (PR) | Apr. 25, 2013, 4:22 PM
Dec. 3, 2012, 5:01 PMVeriSign (VRSN +5.1%) recouped some of the giant losses it saw on Friday after Barron's came to its defense, arguing VeriSign's amended .com domain name registration deal still leaves the company with a high-margin business featuring plenty of visibility. It also noted Wells Fargo's continued bullishness, and conference call remarks about the deal freeing VeriSign to focus on finding ways to monetize its patents. | Dec. 3, 2012, 5:01 PM
VeriSign Inc is a provider of domain name registry services and internet security, enabling internet navigation for many of the world's recognized domain names and providing protection for websites and enterprises around the world.
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