Fri, Feb. 6, 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)
Mon, Jan. 26, 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| Comment!
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 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. | Comment!
Nov. 30, 2012, 1:04 PM
Nov. 30, 2012, 8:23 AMMore on VeriSign: The company announces the Department of Commerce has approved a 6-year renewal of its deal to operate the .com domain name registry. VeriSign's current fee of $7.85/registration will continue, but it won't be able to implement four 7% price hikes over the course of the renewal deal, as it had planned. Instead, price hikes will be tied to a new "consensus policy" or "extraordinary expenses," and will require the DoC's approval. VRSN -14.8%. CC at 8:30AM ET (webcast). | Comment!
Nov. 26, 2012, 11:52 AM
Nov. 1, 2012, 2:20 PMVerisign (VRSN +10.4%) soars after providing details about an '06 amendment to a Cooperative Agreement it signed with the Commerce Department. The amendment states Verisign won't renew its deal to run the .com domain name registry without the department's approval, but also states there's an "expectancy of renewal." Verisign adds it believes the DOJ has "substantially concluded its own review process" - shares had sold off on worries about the DOJ/DOC reviews. (PR) | Comment!
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VeriSign Incis 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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