VRSN - Earnings call transcript Q3 2017

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Operator

Good day, everyone and welcome to VeriSign's Third Quarter 2017 Earnings Call. Today's conference is being recorded, and unauthorized recording of this call is not permitted. At this time, I would like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir.

David Atchley

good and operator, you, afternoon, everyone. Thank VeriSign's to third quarter call. earnings XXXX Welcome Kilguss, and me Chairman, President Executive George Executive Jim and Vice and and With Bidzos, Strubbe, President are CFO. CEO; Todd COO; Executive President Vice This Investor verisign.com section the webcast Relations our call of presentation and being from are website. our third also release. XXXX There, you quarter will find our earnings the of this available site. that end call, be At on the presentation will call a within few And be replay the hours, posted. will of the forward-looking unaudited those results discuss are which statements reports actual our XX-Q, documents identify and include to release SEC, our Financial recent materially and in we statements. the Forms in the specifically, cause our that results differ are to that and risk contained forward-looking risks in in the filed the factors subject with XX-K could from on most remarks earnings uncertainties detail that policy on the a retains to quarter, VeriSign it performance during public is unless not longstanding done through or guidance its comment disclosure. financial the be in used today's The and include by VeriSign. we measures discussing matters call financial non-GAAP GAAP today results and will our GAAP information the appended earnings is Investor to found each slide section can as and applicable, Relations of release reconciliation presentation, of on to which our non-GAAP be website. some Jim call prepared moment, will open and and a will George for afterward, we In remarks, questions. provide the your would I call over to turn that, like With the to Jim.

James Bidzos

VeriSign. quarter Thanks, David, and good afternoon, pleased to for everyone. another solid I report am

and strong to in our our generating financial delivered revenue EPS results with free to offering up $XXX reported X.X% flow. while line our and million in $X customers, non-GAAP Third including of year-over-year, stability cash are growth of long-term We of quarter and objectives profitable performance, $XXX shareholders. value providing and million, security

program X.X continued $XXX third our shares share During for we quarter, by repurchasing repurchase million. million the

and name our the overall cash, equivalents the of for securities repurchases. share for consider .com and continually the business the by million, and Our At from third billion base and .net during of net strength base domain financial the cash, September, the gross of We in for registrations. XXX.X X.X is name totaled new end consisting registrars. increased after $X.X million at .com quarter the evaluate XXX.X best and the benefited during processing marketable quarter. XX names names The domain .net. investing cash X.XX end strong, from of Gross US cash including million million quarter additions in uses based potential the with position million needs names continued

the the rates This quarter are in will Although achieved fully of renewal XX believe quarter of we until XX.X% end XXXX. for not renewal the rate that to rate after compares be quarter, measurable third third preliminary the XX.X%. days the XXXX of

the X.X which increase between consistent year to of name the registrations, over X.X%. X.X% And domain George. full domain XXXX quarter to with We million million base I'd the expected fourth turn the of to to like base to X.X call during name is rate now, growth

George Kilguss

X.X% X.X% and Jim. totaled for you, the million, quarter Thank year-over-year third up $XXX by sequentially. up Revenue

customers from in United was foreign quarter, from the customers. of was XX% and the revenue States During our XX%

quarter in to relates in XXXX. in XX.X% the totaled income to the earlier, the $XXX XX.X% $XXX the third in with compared GAAP our it As operating to million in $X.XX diluted compared million, quarter $XXX same results, per the $X.XX compared a share third The quarter quarter $XXX million produced ago. quarter this year. year margin a third which to year to quarter earnings Net operating for million of year came totaled last the income third compared of

of total XXXX, maintained total the liabilities $X.X of company assets XX, billion. billion As $X.X and of September

I'll held flow of non-GAAP flow. full-year billion which domestically operating operating review will now of cash additional were per securities, some non-GAAP free equivalents earnings I which financial include held million margin, $XXX XXXX abroad. metrics, discuss marketable $X.X and guidance. our and quarter share, cash third remainder cash, cash included with Assets the then

third in as non-GAAP compared which stock-based the to excludes operating relates $XX quarter quarter million million, million same a totaled $XX year metrics, compensation expense, to last both quarter ago. it As and $XXX

be were was shares. While This last quarter, operating third diluted and cash XX.X% income based non-GAAP and of for $XXX flow and operating share margin XXXX million Dilution in on the count quarter weighted during XX quarter the for share activity do expenditures. the million, quarter. $XXX effect timing of second The shares XXXX million quarter $XXX the to share With quarter XX.X respectively quarter respectively. based compared X.X was earnings the was last the respect Free XXXX. compares XXXX quarter. cash repurchased the a same XX.X $X.XX shares million shares quarter, was million the provided for during due shares, expect is flow to third compared we XX% million of full margin weighted million effect spending $XXX provided expenses now XXX.X was quarter. third XX.X% in average with and was is non-GAAP share average full compared million the third now to weighted by capital based of XXX.X on the repurchase related million, the same increased with earnings last operating average call. of for reduced lower partially and for XX.X% second year of the count million XX.XX% of XX.X% in non-GAAP some price debentures quarter convertible XXXX Operating flow in increase billion billion, for $X.XXX $X.XXX was to lower, resulting to Non-GAAP third earnings on $XXX the and billion in net per diluted quarter marketing third expected the sales and the between XXXX to quarter, Non-GAAP an to from the and prior third to from narrowed year quarter in range free $X.XX call. prior be cash XXXX the and range XXX.X to quarter $X in fourth increased year. diluted now Full $X.XXX million the revenue our range third of to in billion a expected guidance, and our $X.XXX on on million

income from be call. The Our convertible the still cash majority and expected $XXX be $XX expected because cash non-GAAP year cash between million domestic non-GAAP of interest Capital $XX XXXX $XXX the million. taxes expenditures for expense and million, are $XX to net changed non-operating an million now million million. to $XX is of of and provided And to between our foreign, are $XX tax the for million are $XX in the expense from last million be taxes tax expected year expected to range including on debentures. between primarily attributes, benefits and still

an not demonstrate will prior quarter convertible debentures are to capital to In part financial debentures, sound and tax conditions redeem company the calls, the performance continues in these based summary, said our we allow accrue. continue these the third structure, XXXX. cash during to which As intention of benefits important our current of is on to

call back to closing the turn Jim will I remarks. his Now, for

James Bidzos

our long protect, the closing, In growth to on George. of allow grow shareholders. Thank manner. in track on line our efficient generating bottom top think the while manage our disciplined quarter us most execution continuing value to and work continue and will growth record profitable lines to extend our the consistent business, continued and trend focus during We the we and our of value focus providing you, our our third in to returning and long-term shareholders

your take questions. now will We

we're first So ready question. operator, for the

Operator

Thank to [Operator Rob we Instructions] you. Baird. will And go Oliver,

Matt Lemenager

us the investigative demand? that's about on web Thanks, that I or a It's this Rob of ago, on afternoon. there any on Hi. update any think guys. we civil setting process [ph]? Matt for how couple quarters you Can update is Lemenager give talked

James Bidzos

the The new news, although no process is same, update there really activity, the ongoing. is is there's

say We point. asked documents constructive are There's this information. CID continuing an We're cooperate nothing about. new to Justice the that dialogue. at Department to ongoing beyond you the that But producing there's and with regarding

soon Of course, as is know. we'll you there as let

Matt Lemenager

And about there as I who or on and impact is been like it. things of bitcoin things like Got thought would have speculators - seen any you have people think with domain. about maybe any and squatters, you - that. Is buying have next arising question theorem just, my the the the we before do and think guys coming

get be out to your that and on curious of purchasing? Just of other may impact like the things bitcoin people thoughts that kind

James Bidzos

in any bitcoin tell and that you don't do domain on trends I direct - do report often. registration between consistently relationship can domain names. and bitcoin of name know purchasing we people we and frequently, trends I

of types registering things. names to related So cryptocurrency people and bitcoin those and are

So trends. those, we we do report see do registration and those

we any don't that, have to report. that I there's Beyond think activity unusual

Matt Lemenager

guys. Got in it. I'll back Thanks, jump queue.

James Bidzos

Thank you.

Operator

things comments. for over you Thank any you. Mr. to I'll Atchley, final turn

David Atchley

Great. call for with Thank a from concludes evening. good you, follow Thank the participation. operator. Investor Relations call. you Please up your our any Have call. this questions This department

Operator

call. does all us. conference that today's And joining conclude you thank We for

VeriSign (VRSN) 26 Oct 172017 Q3 Earnings call transcript