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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

Verisign Reports Third Quarter 2021 Results

October 28, 2021 GMT

RESTON, Va.--(BUSINESS WIRE)--Oct 28, 2021--

VeriSign, Inc. (NASDAQ: VRSN), a global provider of domain name registry services and internet infrastructure, 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.

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“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 .net domain 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.

Today’s Conference Call

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Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the third quarter 2021 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (786) 789-4776 (international), conference ID: Verisign. A listen-only live web cast of the conference call and accompanying slide presentation will also be available at https://investor.Verisign.com. An audio archive of the call will be available at https://investor.Verisign.com/events.cfm. This news release and the financial information discussed on today’s conference call are available at https://investor.Verisign.com.

About Verisign

Verisign, a global provider of domain name registry services and internet infrastructure, enables internet navigation for many of the world’s most recognized domain names. Verisign enables the security, stability, and resiliency of key internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more about what it means to be Powered by Verisign, please visit Verisign.com.

VRSNF

Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, attempted security breaches, cyber-attacks, and DDoS attacks against our systems and services; the introduction of undetected or unknown defects in our systems; vulnerabilities in the global routing system; system interruptions or system failures; damage to our data centers; risks arising from our operation of root servers and our performance of the Root Zone Maintainer functions; any loss or modification of our right to operate the .com and .net gTLDs; changes or challenges to the pricing provisions of the .com Registry Agreement; new or existing governmental laws and regulations in the U.S. or other applicable foreign jurisdictions; economic, legal and political risks associated with our international operations; the impact of unfavorable tax rules and regulations; risks from the adoption of ICANN’s consensus and temporary policies, technical standards and other processes; the uncertainty of the impact of changes to the multi-stakeholder model of internet governance; the outcome of claims, lawsuits, audits or investigations; the effects of the COVID-19 pandemic; our ability to compete in the highly competitive business environment in which we operate; changes in internet practices and behavior and the adoption of substitute technologies, or the negative impact of wholesale price increases; our ability to expand our services into developing and emerging economies; our ability to maintain strong relationships with registrars and their resellers; our ability to attract, retain and motivate our highly skilled employees; and our ability to protect and enforce our intellectual property rights. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended Dec. 31, 2020, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.

©2021 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.

VERISIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

 

September 30,
2021

 

December 31,
2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents.......................................................................................................

$

256,869

 

 

$

401,194

 

Marketable securities...............................................................................................................

941,552

 

 

765,713

 

Other current assets..................................................................................................................

65,989

 

 

51,033

 

Total current assets...........................................................................................................

1,264,410

 

 

1,217,940

 

Property and equipment, net............................................................................................................

249,093

 

 

245,571

 

Goodwill..........................................................................................................................................

52,527

 

 

52,527

 

Deferred tax assets..........................................................................................................................

65,163

 

 

67,914

 

Deposits to acquire intangible assets..............................................................................................

145,000

 

 

145,000

 

Other long-term assets....................................................................................................................

38,514

 

 

37,958

 

Total long-term assets.......................................................................................................

550,297

 

 

548,970

 

Total assets........................................................................................................................

$

1,814,707

 

 

$

1,766,910

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities................................................................................

$

204,511

 

 

$

208,642

 

Deferred revenues....................................................................................................................

843,664

 

 

780,051

 

Total current liabilities......................................................................................................

1,048,175

 

 

988,693

 

Long-term deferred revenues..........................................................................................................

314,089

 

 

282,838

 

Senior notes.....................................................................................................................................

1,785,152

 

 

1,790,083

 

Long-term tax and other liabilities.................................................................................................

84,869

 

 

95,494

 

Total long-term liabilities.................................................................................................

2,184,110

 

 

2,168,415

 

Total liabilities..................................................................................................................

3,232,285

 

 

3,157,108

 

Commitments and contingencies

 

 

 

Stockholders’ deficit:

 

 

 

Preferred stock—par value $.001 per share; Authorized shares: 5,000; Issued and outstanding shares: none..........................................................................................................

 

 

 

Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000,000; Issued shares: 354,154 at September 30, 2021 and 353,789 at December 31, 2020; Outstanding shares: 111,283 at September 30, 2021 and 113,470 at December 31, 2020..........................................................................................................................................

13,793,049

 

 

14,275,160

 

Accumulated deficit.................................................................................................................

(15,207,854)

 

 

(15,662,602)

 

Accumulated other comprehensive loss...................................................................................

(2,773)

 

 

(2,756)

 

Total stockholders’ deficit.................................................................................................

(1,417,578)

 

 

(1,390,198)

 

Total liabilities and stockholders’ deficit..........................................................................

$

1,814,707

 

 

$

1,766,910

 

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

Revenues...........................................................................................

$

334,242

 

 

$

317,879

 

 

$

987,268

 

 

$

944,768

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenues.........................................................................

47,801

 

 

45,024

 

 

142,565

 

 

134,205

 

Sales and marketing...................................................................

9,410

 

 

8,389

 

 

28,115

 

 

23,883

 

Research and development........................................................

19,566

 

 

19,708

 

 

59,685

 

 

55,268

 

General and administrative........................................................

36,160

 

 

38,109

 

 

112,212

 

 

111,719

 

Total costs and expenses.....................................................

112,937

 

 

111,230

 

 

342,577

 

 

325,075

 

Operating income..............................................................................

221,305

 

 

206,649

 

 

644,691

 

 

619,693

 

Interest expense.................................................................................

(18,829)

 

 

(22,537)

 

 

(64,427)

 

 

(67,607)

 

Non-operating income (loss), net......................................................

164

 

 

775

 

 

(1,433)

 

 

15,262

 

Income before income taxes.............................................................

202,640

 

 

184,887

 

 

578,831

 

 

567,348

 

Income tax (expense) benefit............................................................

(46,018)

 

 

(13,908)

 

 

(124,083)

 

 

90,226

 

Net income........................................................................................

156,622

 

 

170,979

 

 

454,748

 

 

657,574

 

Other comprehensive income (loss).................................................

61

 

 

(383)

 

 

(17)

 

 

(120)

 

Comprehensive income.....................................................................

$

156,683

 

 

$

170,596

 

 

$

454,731

 

 

$

657,454

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

Basic...........................................................................................

$

1.40

 

 

$

1.49

 

 

$

4.05

 

 

$

5.70

 

Diluted.......................................................................................

$

1.40

 

 

$

1.49

 

 

$

4.04

 

 

$

5.68

 

Shares used to compute earnings per share

 

 

 

 

 

 

 

Basic...........................................................................................

111,664

 

 

114,655

 

 

112,389

 

 

115,456

 

Diluted.......................................................................................

111,793

 

 

114,831

 

 

112,530

 

 

115,699

 

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

Nine Months Ended
September 30,

 

2021

 

2020

Cash flows from operating activities:

 

 

 

Net income.............................................................................................................................

$

454,748

 

 

$

657,574

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation of property and equipment........................................................................

35,609

 

 

34,463

 

Stock-based compensation..............................................................................................

41,019

 

 

36,106

 

Other, net.........................................................................................................................

5,410

 

 

(8,482)

 

Changes in operating assets and liabilities:

 

 

 

Other assets................................................................................................................

(19,735)

 

 

(11,107)

 

Accounts payable and accrued liabilities...................................................................

(5,529)

 

 

(5,912)

 

Deferred revenues.......................................................................................................

94,863

 

 

27,673

 

Net deferred income taxes and other long-term tax liabilities...................................

(5,476)

 

 

(195,353)

 

Net cash provided by operating activities...............................................................

600,909

 

 

534,962

 

Cash flows from investing activities:

 

 

 

Proceeds from maturities and sales of marketable securities................................................

2,246,148

 

 

1,804,541

 

Purchases of marketable securities........................................................................................

(2,421,705)

 

 

(2,093,437)

 

Purchases of property and equipment....................................................................................

(39,536)

 

 

(36,933)

 

Proceeds received related to sale of business.........................................................................

 

 

20,009

 

Net cash used in investing activities........................................................................

(215,093)

 

 

(305,820)

 

Cash flows from financing activities:

 

 

 

Repayment of borrowings......................................................................................................

(750,000)

 

 

 

Proceeds from senior note issuance, net of issuance costs....................................................

741,075

 

 

 

Repurchases of common stock...............................................................................................

(536,797)

 

 

(603,705)

 

Proceeds from employee stock purchase plan.......................................................................

12,404

 

 

12,577

 

Net cash used in financing activities.......................................................................

(533,318)

 

 

(591,128)

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash...........................

(600)

 

 

(506)

 

Net decrease in cash, cash equivalents, and restricted cash..........................................................

(148,102)

 

 

(362,492)

 

Cash, cash equivalents, and restricted cash at beginning of period..............................................

410,601

 

 

517,601

 

Cash, cash equivalents, and restricted cash at end of period.........................................................

$

262,499

 

 

$

155,109

 

Supplemental cash flow disclosures:

 

 

 

Cash paid for interest.............................................................................................................

$

61,845

 

 

$

56,860

 

Cash paid for income taxes, net of refunds received.............................................................

$

132,202

 

 

$

105,258

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211028005929/en/

CONTACT: Investor Relations: David Atchley,datchley@verisign.com, 703-948-4643

Media Relations: James Barbour,jbarbour@verisign.com, 703-948-3800

KEYWORD: VIRGINIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: ONLINE RETAIL TECHNOLOGY OTHER COMMUNICATIONS COMMUNICATIONS SEARCH ENGINE OPTIMIZATION SEARCH ENGINE MARKETING RETAIL SOFTWARE NETWORKS INTERNET MOBILE/WIRELESS

SOURCE: VeriSign, Inc.

Copyright Business Wire 2021.

PUB: 10/28/2021 04:05 PM/DISC: 10/28/2021 04:06 PM

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