Document and Entity Information
Document and Entity Information Document - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Document And Entity Information [Abstract] | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | VRSN | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3221585 | |
Entity Address, Postal Zip Code | 20190 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | VERISIGN INC/CA | |
Entity Central Index Key | 0001014473 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2024 | |
Entity File Number | 000-23593 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 97.6 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Address, Address Line One | 12061 Bluemont Way, | |
Entity Address, City or Town | Reston, | |
Entity Address, State or Province | VA | |
City Area Code | 703 | |
Local Phone Number | 948-3200 | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 252.2 | $ 240.1 |
Marketable securities | 437.7 | 686.3 |
Other Assets, Current | 71.3 | 61.9 |
Total current assets | 761.2 | 988.3 |
Property and equipment, net | 227.8 | 233.2 |
Goodwill | 52.5 | 52.5 |
Deferred Income Tax Assets, Net | 279.8 | 301 |
Deposits to acquire Intangible Assets | 145 | 145 |
Other long-term assets | 38.8 | 29 |
Total long-term assets | 743.9 | 760.7 |
Total assets | 1,505.1 | 1,749 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 224.2 | 257.4 |
Deferred revenues | 967.1 | 931.1 |
Total current liabilities | 1,191.3 | 1,188.5 |
Long-term deferred revenues | 321.6 | 315 |
Senior Notes | 1,791.3 | 1,790.2 |
Other long-term liabilities | 17.3 | 36.3 |
Total long-term liabilities | 2,130.2 | 2,141.5 |
Total liabilities | 3,321.5 | 3,330 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Preferred stock-par value $.001 per share | 0 | 0 |
Common Stocks, Including Additional Paid in Capital | 11,179.9 | 11,808 |
Accumulated deficit | (12,993.5) | (13,386.4) |
Accumulated other comprehensive loss | (2.8) | (2.6) |
Total stockholders' deficit | (1,816.4) | (1,581) |
Total liabilities and stockholders' deficit | $ 1,505.1 | $ 1,749 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5 | 5 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 1,000 | 1,000 |
Common Stock, Shares, Issued | 355.1 | 354.9 |
Common stock, outstanding shares | 98 | 101.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 5 | 5 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 1,000 | 1,000 |
Common Stock, Shares, Issued | 355.1 | 354.9 |
Common stock, outstanding shares | 98 | 101.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | $ 387.1 | $ 372 | $ 771.4 | $ 736.4 |
Costs and expenses: | ||||
Cost of revenues | 47.1 | 50.3 | 96.2 | 100.2 |
Research and development | 23.8 | 22.2 | 48.6 | 46.4 |
Selling, General and Administrative Expense | 50 | 50.8 | 101.5 | 99.8 |
Total costs and expenses | 120.9 | 123.3 | 246.3 | 246.4 |
Operating income | 266.2 | 248.7 | 525.1 | 490 |
Interest expense | (18.8) | (18.9) | (37.6) | (37.7) |
Non-operating income (loss), net | 11.5 | 12.7 | 25.4 | 24 |
Income (Loss) before Income Taxes, Total | 258.9 | 242.5 | 512.9 | 476.3 |
Income tax expense | (60.1) | (56.8) | (120) | (111.9) |
Net Income | 198.8 | 185.7 | 392.9 | 364.4 |
Other comprehensive income (loss) | 0 | (0.7) | (0.2) | (0.7) |
Comprehensive Income | $ 198.8 | $ 185 | $ 392.7 | $ 363.7 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 2.01 | $ 1.79 | $ 3.93 | $ 3.49 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 2.01 | $ 1.79 | $ 3.93 | $ 3.49 |
Basic | 98.9 | 103.9 | 99.9 | 104.4 |
Diluted | 99 | 104 | 99.9 | 104.5 |
Basic income (loss) per share | ||||
Net Income | $ 2.01 | $ 1.79 | $ 3.93 | $ 3.49 |
Diluted income (loss) per share | ||||
Net Income | $ 2.01 | $ 1.79 | $ 3.93 | $ 3.49 |
Shares used to compute net income per share | ||||
Basic | 98.9 | 103.9 | 99.9 | 104.4 |
Diluted | 99 | 104 | 99.9 | 104.5 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit Statement - USD ($) $ in Millions | Total | Common Stock Including Additional Paid in Capital [Member] | Accumulated Deficit [Member] | AOCI Attributable to Parent [Member] |
Stockholders' Deficit | $ (1,562.2) | $ 12,644.5 | $ (14,204) | $ (2.7) |
Stock Repurchased During Period, Value | (453.4) | |||
Stock-based compensation expense | 30 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 8 | |||
Excise tax on repurchase of common stock | (4) | |||
Net Income | 364.4 | 364.4 | ||
Other Comprehensive Income (Loss), Net of Tax | (0.7) | (0.7) | ||
Stockholders' Deficit | (1,593.8) | 12,434.2 | (14,025.3) | (2.7) |
Stock Repurchased During Period, Value | (222.9) | |||
Stock-based compensation expense | 15.9 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 0 | |||
Excise tax on repurchase of common stock | (2.1) | |||
Net Income | 185.7 | |||
Other Comprehensive Income (Loss), Net of Tax | (0.7) | (0.7) | ||
Stockholders' Deficit | (1,617.9) | 12,225.1 | (13,839.6) | (3.4) |
Stockholders' Deficit | (1,581) | 11,808 | (13,386.4) | (2.6) |
Stock Repurchased During Period, Value | (660.2) | |||
Stock-based compensation expense | 29.9 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 8.3 | |||
Excise tax on repurchase of common stock | (6.1) | |||
Net Income | 392.9 | 392.9 | ||
Other Comprehensive Income (Loss), Net of Tax | (0.2) | (0.2) | ||
Stockholders' Deficit | (1,635.7) | 11,559.4 | (13,192.3) | (2.8) |
Stock Repurchased During Period, Value | (390.3) | |||
Stock-based compensation expense | 14.6 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 0 | |||
Excise tax on repurchase of common stock | (3.8) | |||
Net Income | 198.8 | |||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||
Stockholders' Deficit | $ (1,816.4) | $ 11,179.9 | $ (12,993.5) | $ (2.8) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 392.9 | $ 364.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property and equipment | 19.1 | 22.9 |
Stock-based compensation | 29.4 | 29.5 |
Investment Income, Amortization of Discount | (11.1) | (9.3) |
Other Noncash Income (Expense) | (1.6) | (2) |
Changes in operating assets and liabilities | ||
Other assets | (19.2) | (1) |
Other Liabilities | (58.8) | (48.7) |
Deferred revenues | 42.6 | 41.5 |
Deferred Income Taxes | 21.2 | 3 |
Net cash provided by operating activities | 417.7 | 404.3 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | ||
Proceeds from maturities and sales of marketable securities | 727.6 | 721.3 |
Purchases of marketable securities | (468.1) | (697.6) |
Purchases of property and equipment | (13) | (12.2) |
Net cash used in investing activities | 246.5 | 11.5 |
Cash flows from financing activities: | ||
Payments for Repurchase of Common Stock | 660.2 | 453.4 |
Proceeds from employee stock purchase plans | 8.3 | 8 |
Net cash used in financing activities | (651.9) | (445.4) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (0.3) | (0.2) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 12 | (29.8) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 245.5 | 379 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | 257.5 | 349.2 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 36.4 | 36.4 |
Cash paid for income taxes, net of refunds received | $ 138.6 | $ 132.4 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | Basis of Presentation Interim Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”) filed with the SEC on February 15, 2024. Reclassifications Certain reclassifications have been made to prior period amounts to conform to current period presentation. Such reclassifications have no effect on net income as previously reported. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires additional disclosure of significant segment expenses on an annual and interim basis. This guidance will be applied retrospectively and will be effective for our 2024 Form 10-K, and for interim periods beginning in 2025. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for our 2025 Form 10-K. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Financial Instruments, Owned, at Fair Value, by Type, Alternative [Abstract] | |
Financial Instruments | Financial Instruments Cash, Cash Equivalents, and Marketable Securities The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis: June 30, December 31, 2024 2023 (In millions) Cash $ 23.9 $ 25.6 Time deposits 1.1 1.0 Money market funds (Level 1) 232.5 160.3 Debt securities issued by the U.S. Treasury (Level 1) 437.7 744.9 Total $ 695.2 $ 931.8 Cash and cash equivalents $ 252.2 $ 240.1 Restricted cash (included in Other long-term assets) 5.3 5.4 Total Cash, cash equivalents, and restricted cash 257.5 245.5 Marketable securities 437.7 686.3 Total $ 695.2 $ 931.8 The gross and net unrealized gains and losses included in the fair value of the debt securities were not significant for the periods presented. All of the debt securities held as of June 30, 2024 are scheduled to mature in less than one year. Fair Value Measurements The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of the Company’s foreign currency forward contracts is based on foreign currency rates quoted by banks or foreign currency dealers and other public data sources. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy. |
Other Balance Sheet Items
Other Balance Sheet Items | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Items | Selected Balance Sheet Items Other Current Assets Other current assets consist of the following: June 30, December 31, 2024 2023 (In millions) Prepaid expenses $ 30.1 $ 23.3 Prepaid registry fees 24.5 23.8 Taxes receivable 11.0 7.3 Accounts receivable, net 3.6 6.3 Other 2.1 1.2 Total other current assets $ 71.3 $ 61.9 Other Long-Term Assets Other long-term assets consist of the following: June 30, December 31, 2024 2023 (In millions) Operating lease right-of-use asset $ 11.7 $ 7.4 Long-term prepaid expenses 10.3 4.8 Long-term prepaid registry fees 8.2 8.3 Restricted cash 5.3 5.4 Other 3.3 3.1 Total other long-term assets $ 38.8 $ 29.0 The prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual term of . com domain name registrations and renewals which are deferred and amortized over the domain name registration term. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: June 30, December 31, 2024 2023 (In millions) Accounts payable and accrued expenses $ 9.0 $ 12.5 Customer deposits 67.4 77.2 Taxes payable 54.7 49.5 Accrued employee compensation 45.3 61.2 Interest payable 19.5 19.5 Accrued registry fees 13.2 12.3 Current operating lease liabilities 6.0 5.1 Customer incentives payable 5.4 6.5 Foreign currency forward contracts — 10.7 Other accrued liabilities 3.7 2.9 Total accounts payable and accrued liabilities $ 224.2 $ 257.4 The balance of customer deposits varies from period to period due to the timing of payments from certain large customers. Taxes payable reflects amounts accrued for the income tax provision and payments made during the period. This balance fluctuates from period to period due to the timing of income tax payments in the Company’s major tax jurisdictions. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2023 was paid during the six months ended June 30, 2024. The liability related to the unrealized loss on foreign currency forward contracts as of December 31, 2023 was remeasured and paid upon settlement of the forward contract during the six months ended June 30, 2024. Long-term Tax and Other Liabilities Long-term tax and other liabilities consist of the following: June 30, December 31, 2024 2023 (In millions) Long-term tax liabilities $ 11.7 $ 34.1 Long-term operating lease liabilities 5.6 2.2 Long-term tax and other liabilities $ 17.3 $ 36.3 Long-term tax liabilities as of June 30, 2024 reflects a $24.1 million reclassification to current liabilities of the final installment of the transition tax liability on accumulated foreign earnings resulting from the 2017 Tax Cuts and Jobs Act. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' (Deficit) Equity | Share Repurchases Effective July 27, 2023, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $1.14 billion, in addition to the $356.1 million that remained available for repurchases under the share repurchase program, for a total authorization of up to $1.50 billion under the program. The program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. As of June 30, 2024 there was approximately $471.6 million remaining available for repurchases under the program. Effective July 25, 2024, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $1.11 billion, in addition to the $388.0 million that remained available for repurchases under the share repurchase program, for a total repurchase authorization of up to $1.50 billion under the program. The Company’s share repurchases are as following. Amounts may not add up due to rounding: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Shares Total Costs Average Price Shares Total Costs Average Price (In millions, except average price amounts) Total repurchases under the repurchase plans 2.2 $ 388.0 $ 177.68 3.5 $ 648.4 $ 184.74 Total repurchases for tax withholdings — 2.3 $ 170.01 0.1 11.7 $ 191.75 Total repurchases 2.2 $ 390.3 $ 177.63 3.6 $ 660.2 $ 184.86 Since inception, the Company has repurchased 257.1 million shares of its common stock for an aggregate cost of $14.31 billion, which is recorded as a reduction of Additional paid-in capital. The share repurchase and authorization amounts disclosed in this Form 10-Q exclude the excise tax on share repurchases. |
Calculation Of Net Income Per S
Calculation Of Net Income Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Calculation Of Net Income Per Share Attributable To Verisign Stockholders | Calculation of Earnings per Share The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) Weighted-average shares of common stock outstanding 98.9 103.9 99.9 104.4 Weighted-average potential shares of common stock outstanding: Unvested RSUs and ESPP 0.1 0.1 — 0.1 Shares used to compute diluted earnings per share 99.0 104.0 99.9 104.5 The calculation of diluted weighted average shares outstanding excludes performance-based RSUs granted by the Company for which the relevant performance criteria have not been achieved and any awards that are antidilutive. The number of potential shares excluded from the calculation was not significant in any period presented. |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Table Text Block] | Revenues The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); China; and certain other countries, including Canada, Japan, and Singapore. The following table presents the Company’s revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) U.S. $ 257.7 $ 247.6 $ 513.0 $ 490.4 EMEA 61.6 56.7 121.9 111.7 China 19.8 23.9 40.5 49.0 Other 48.0 43.8 96.0 85.3 Total revenues $ 387.1 $ 372.0 $ 771.4 $ 736.4 Revenues in the table above are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. Deferred Revenues As payments for domain name registrations and renewals are due in advance of our performance, we record these amounts as deferred revenues. The increase in the deferred revenues balance for the six months ended June 30, 2024 was primarily driven by amounts billed in the six months ended June 30, 2024 for domain name registrations and renewals to be recognized as revenues in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $606.7 million of revenues recognized that were included in the deferred revenues balance at December 31, 2023. The balance of deferred revenues as of June 30, 2024 represents our aggregate remaining performance obligations. Amounts included in current deferred revenues are all expected to be recognized in revenues within 12 months, except for a portion of deferred revenues that relates to domain name renewals that are deleted in the 45-day grace period following the transaction. The long-term deferred revenues amounts will be recognized in revenues over several years and in some cases up to ten years. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-based Compensation Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) Cost of revenues $ 2.0 $ 2.0 $ 4.0 $ 3.3 Research and development 2.8 2.5 5.4 5.0 Selling, general and administrative 9.5 11.2 20.0 21.2 Stock-based compensation expense 14.3 15.7 29.4 29.5 Capitalization (included in Property and equipment, net) 0.3 0.2 0.5 0.5 Total stock-based compensation $ 14.6 $ 15.9 $ 29.9 $ 30.0 The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) RSUs $ 11.9 $ 11.6 $ 24.0 $ 22.5 Performance-based RSUs 1.6 3.2 3.7 5.3 ESPP 1.1 1.1 2.2 2.2 Total stock-based compensation $ 14.6 $ 15.9 $ 29.9 $ 30.0 |
Other Income and Expenses
Other Income and Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Nonoperating Income and Expense | Non-operating Income, NetNon-operating income, net, primarily consists of interest income from the Company’s surplus cash balances and marketable securities. Interest income was $9.7 million and $21.7 million during the three and six months ended June 30, 2024, respectively, compared to $11.5 million and $22.2 million during the same periods in 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents Income tax expense and the effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) Income tax expense $ 60.1 $ 56.8 $ 120.0 $ 111.9 Effective tax rate 23 % 23 % 23 % 23 % |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 198.8 | $ 185.7 | $ 392.9 | $ 364.4 |
Insider Trading Arrangements
Insider Trading Arrangements - shares | 3 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Danny McPherson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 15, 2024, Danny McPherson, the Company’s Executive Vice President, Engineering, Operations and Chief Security Officer, terminated an existing Rule 10b5-1(c) trading plan, originally adopted on November 22, 2023. The trading plan permitted the sale of up to 6,000 shares of Company common stock between March 1, 2024 and March 28, 2025, subject to certain conditions. | |
Name | Danny McPherson | |
Title | Executive Vice President, Engineering, Operations and Chief Security Officer | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | May 15, 2024 | |
Aggregate Available | 6,000 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Financial Instruments, Owned, at Fair Value, by Type, Alternative [Abstract] | |
Cash, Cash Equivalents, And Marketable Securities | The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis: June 30, December 31, 2024 2023 (In millions) Cash $ 23.9 $ 25.6 Time deposits 1.1 1.0 Money market funds (Level 1) 232.5 160.3 Debt securities issued by the U.S. Treasury (Level 1) 437.7 744.9 Total $ 695.2 $ 931.8 Cash and cash equivalents $ 252.2 $ 240.1 Restricted cash (included in Other long-term assets) 5.3 5.4 Total Cash, cash equivalents, and restricted cash 257.5 245.5 Marketable securities 437.7 686.3 Total $ 695.2 $ 931.8 |
Other Balance Sheet Items (Tabl
Other Balance Sheet Items (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets consist of the following: June 30, December 31, 2024 2023 (In millions) Prepaid expenses $ 30.1 $ 23.3 Prepaid registry fees 24.5 23.8 Taxes receivable 11.0 7.3 Accounts receivable, net 3.6 6.3 Other 2.1 1.2 Total other current assets $ 71.3 $ 61.9 |
Schedule of Other Assets, Noncurrent [Table Text Block] | Other long-term assets consist of the following: June 30, December 31, 2024 2023 (In millions) Operating lease right-of-use asset $ 11.7 $ 7.4 Long-term prepaid expenses 10.3 4.8 Long-term prepaid registry fees 8.2 8.3 Restricted cash 5.3 5.4 Other 3.3 3.1 Total other long-term assets $ 38.8 $ 29.0 |
Components Of Accounts Payable And Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: June 30, December 31, 2024 2023 (In millions) Accounts payable and accrued expenses $ 9.0 $ 12.5 Customer deposits 67.4 77.2 Taxes payable 54.7 49.5 Accrued employee compensation 45.3 61.2 Interest payable 19.5 19.5 Accrued registry fees 13.2 12.3 Current operating lease liabilities 6.0 5.1 Customer incentives payable 5.4 6.5 Foreign currency forward contracts — 10.7 Other accrued liabilities 3.7 2.9 Total accounts payable and accrued liabilities $ 224.2 $ 257.4 |
Other Noncurrent Liabilities [Table Text Block] | Long-term tax and other liabilities consist of the following: June 30, December 31, 2024 2023 (In millions) Long-term tax liabilities $ 11.7 $ 34.1 Long-term operating lease liabilities 5.6 2.2 Long-term tax and other liabilities $ 17.3 $ 36.3 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Common Stock Repurchase | The Company’s share repurchases are as following. Amounts may not add up due to rounding: Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Shares Total Costs Average Price Shares Total Costs Average Price (In millions, except average price amounts) Total repurchases under the repurchase plans 2.2 $ 388.0 $ 177.68 3.5 $ 648.4 $ 184.74 Total repurchases for tax withholdings — 2.3 $ 170.01 0.1 11.7 $ 191.75 Total repurchases 2.2 $ 390.3 $ 177.63 3.6 $ 660.2 $ 184.86 |
Calculation Of Net Income Per_2
Calculation Of Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) Weighted-average shares of common stock outstanding 98.9 103.9 99.9 104.4 Weighted-average potential shares of common stock outstanding: Unvested RSUs and ESPP 0.1 0.1 — 0.1 Shares used to compute diluted earnings per share 99.0 104.0 99.9 104.5 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents the Company’s revenues disaggregated by geography, based on the billing addresses of our customers: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) U.S. $ 257.7 $ 247.6 $ 513.0 $ 490.4 EMEA 61.6 56.7 121.9 111.7 China 19.8 23.9 40.5 49.0 Other 48.0 43.8 96.0 85.3 Total revenues $ 387.1 $ 372.0 $ 771.4 $ 736.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Classification Of Stock-Based Compensation | The following table presents the classification of stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) Cost of revenues $ 2.0 $ 2.0 $ 4.0 $ 3.3 Research and development 2.8 2.5 5.4 5.0 Selling, general and administrative 9.5 11.2 20.0 21.2 Stock-based compensation expense 14.3 15.7 29.4 29.5 Capitalization (included in Property and equipment, net) 0.3 0.2 0.5 0.5 Total stock-based compensation $ 14.6 $ 15.9 $ 29.9 $ 30.0 |
Nature Of Total Stock-Based Compensation | The following table presents the nature of the Company’s total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In millions) RSUs $ 11.9 $ 11.6 $ 24.0 $ 22.5 Performance-based RSUs 1.6 3.2 3.7 5.3 ESPP 1.1 1.1 2.2 2.2 Total stock-based compensation $ 14.6 $ 15.9 $ 29.9 $ 30.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense From Continuing Operations And The Effective Tax Rate | The following table presents Income tax expense and the effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in millions) Income tax expense $ 60.1 $ 56.8 $ 120.0 $ 111.9 Effective tax rate 23 % 23 % 23 % 23 % |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||||
Cash | $ 23.9 | $ 25.6 | ||
Time deposits | 1.1 | 1 | ||
Money Market Funds (level 1) | 232.5 | 160.3 | ||
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value | 437.7 | 744.9 | ||
Total | 695.2 | 931.8 | ||
Included in Cash and cash equivalents | 252.2 | 240.1 | ||
Restricted Cash Equivalents, Noncurrent | 5.3 | 5.4 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 257.5 | 245.5 | $ 349.2 | $ 379 |
Included in Marketable securities | $ 437.7 | $ 686.3 |
Financial Instruments Financial
Financial Instruments Financial Instruments narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument, Fair Value Disclosure | $ 1,670 | $ 1,690 |
Other Balance Sheet Items (Othe
Other Balance Sheet Items (Other Current Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid Expense | $ 30.1 | $ 23.3 |
Prepaid registry fees, current | 24.5 | 23.8 |
Income Taxes Receivable | 11 | 7.3 |
Accounts Receivable, Net | 3.6 | 6.3 |
Other Assets, Miscellaneous, Current | 2.1 | 1.2 |
Other Assets, Current | $ 71.3 | $ 61.9 |
Other Balance Sheet Items (Ot_2
Other Balance Sheet Items (Other Long Term Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
prepaid registry fees, non current | $ 11.7 | $ 7.4 |
Operating lease ROU | 10.3 | 4.8 |
Prepaid Expense, Noncurrent | 8.2 | 8.3 |
Restricted Cash | 5.3 | 5.4 |
Other Assets, Miscellaneous, Noncurrent | 3.3 | 3.1 |
Other Assets, Noncurrent | $ 38.8 | $ 29 |
Other Balance Sheet Items (Comp
Other Balance Sheet Items (Components Of Accounts Payable And Accrued Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts payable | $ 9 | $ 12.5 |
Deposits | 67.4 | 77.2 |
Taxes Payable | 54.7 | 49.5 |
Accrued employee compensation | 45.3 | 61.2 |
Interest Payable | 19.5 | 19.5 |
accrued fees | 13.2 | 12.3 |
Operating Lease, Liability, Current | 6 | 5.1 |
customer incentives payable | 5.4 | 6.5 |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 10.7 |
Other accrued liabilities | 3.7 | 2.9 |
Total accounts payable and accrued liabilities | $ 224.2 | $ 257.4 |
Other Balance Sheet Items (Non-
Other Balance Sheet Items (Non-Current Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Deferred Income Taxes and Other Liabilities, Noncurrent | $ 11.7 | $ 34.1 |
Long-term Operating Lease Liabilities | 5.6 | 2.2 |
Other Liabilities, Noncurrent | $ 17.3 | $ 36.3 |
Stockholders' Deficit (Narrativ
Stockholders' Deficit (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 7 Months Ended | ||
Jul. 25, 2024 | Jul. 27, 2023 | Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |||
Additional share repurchase amount authorized | $ 1,110 | $ 1,140 | |
Remaining common stock available for repurchase | 388 | 356.1 | $ 471.6 |
Common stock authorized to repurchase | $ 1,500 | $ 1,500 | |
Treasury Stock, Common, Shares | 257.1 | ||
Common stock repurchased | $ 14,310 |
Stockholders' Deficit (Summary
Stockholders' Deficit (Summary of Common Stock Repurchase) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | |||
Treasury Stock Shares Repurchased | $ 2.2 | $ 3.5 | |
Treasury Stock Shares Repurchased for Tax Withholding and Other | $ 0 | $ 0.1 | |
Common stock repurchase, share | 2.2 | 3.6 | |
Aggregate cost of share | $ 388 | $ 648.4 | |
Treasury stock, value, repurchased for tax withholding | 2.3 | 11.7 | |
Payments for Repurchase of Common Stock | $ 390.3 | $ 660.2 | $ 453.4 |
Treasury stock shares repurchased, average cost per share | $ 177.68 | $ 184.74 | |
Total repurchases for tax withholdings and other, average cost per share | 170.01 | 191.75 | |
Average stock price | $ 177.63 | $ 184.86 |
Calculation Of Net Income Per_3
Calculation Of Net Income Per Share (Weighted-Average Shares Used In Calculation Of Basic And Diluted EPS) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of common shares outstanding | 98.9 | 103.9 | 99.9 | 104.4 |
Unvested RSUs and ESPP | 0.1 | 0.1 | 0 | 0.1 |
Shares used to compute diluted net income per share | 99 | 104 | 99.9 | 104.5 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 387.1 | $ 372 | $ 771.4 | $ 736.4 |
US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 257.7 | 247.6 | 513 | 490.4 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61.6 | 56.7 | 121.9 | 111.7 |
China [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 19.8 | 23.9 | 40.5 | 49 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 48 | $ 43.8 | $ 96 | $ 85.3 |
Revenue Revenue (Narrative deta
Revenue Revenue (Narrative detail) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, Revenue Recognized | $ 606.7 |
Stock-Based Compensation (Class
Stock-Based Compensation (Classification Of Stock-Based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 14.3 | $ 15.7 | $ 29.4 | $ 29.5 |
Share-based Payment Arrangement, Amount Capitalized | 0.3 | 0.2 | 0.5 | 0.5 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | 14.6 | 15.9 | 29.9 | 30 |
Cost Of Revenues [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 2 | 2 | 4 | 3.3 |
Research And Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 2.8 | 2.5 | 5.4 | 5 |
Selling, General And Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 9.5 | $ 11.2 | $ 20 | $ 21.2 |
Stock-Based Compensation (Natur
Stock-Based Compensation (Nature Of Total Stock-Based Compensation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 14.3 | $ 15.7 | $ 29.4 | $ 29.5 |
Share-based Payment Arrangement, Amount Capitalized | 0.3 | 0.2 | 0.5 | 0.5 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | 14.6 | 15.9 | 29.9 | 30 |
Cost Of Revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 2 | 2 | 4 | 3.3 |
Research And Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 2.8 | 2.5 | 5.4 | 5 |
Selling, General And Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 9.5 | 11.2 | 20 | 21.2 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 11.9 | 11.6 | 24 | 22.5 |
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1.6 | 3.2 | 3.7 | 5.3 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 1.1 | $ 1.1 | $ 2.2 | $ 2.2 |
Other Income and Expenses (Deta
Other Income and Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Investment Income, Interest and Dividend | $ 9.7 | $ 11.5 | $ 21.7 | $ 22.2 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense From Continuing Operations And Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense from continuing operations | $ 60.1 | $ 56.8 | $ 120 | $ 111.9 |
Effective tax rate | 23% | 23% | 23% | 23% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2024 Rate | |
Income Tax Disclosure [Abstract] | |
Statutory federal rate | 21% |