Earnings call transcript Q1 2023

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Operator

Good day, everyone. Welcome to VeriSign's First Quarter 2023 Earnings Call. Today's conference is being recorded. Recording of this call is not permitted unless preauthorized.

At this time, I would like to turn the conference over to Mr. of and President Treasurer. Vice Atchley, Investor Corporate Relations David Please sir. go ahead,

David Atchley

first Welcome earnings operator. you, quarter to Thank VeriSign's XXXX call.

Vice on within call, and Joining me About At Todd Kilguss, call COO; and the release. website are Investor few being is find and Chairman CFO. our the webcast will replay Executive call and George from presentation VeriSign are Jim Strubbe, presentation available Bidzos, earnings President under of Executive on President and verisign.com. will This There, you and Relations the that CEO; which be the hours, be available of a will this site also the end posted. and

prepared which questions. website the to measures by remarks. reconciliation your adjusted discussing GAAP and some Relations today matters to EBITDA and GAAP are Form financial And in cash report results unless the the with appended used uncertainties does most The risks disclosure. slide can open done available we remarks free call on and update and our the flow. statements Investor will be our presentation for information is VeriSign, our and X the call during we it SEC, XX-K. and is to specifically Financial guidance George performance release we afterward, non-GAAP found include quarter financial in results discuss today's VeriSign in will section documents public or after a provide of on results recent the our the that Jim not be in filed detail unaudited that this earnings forward-looking call. the non-GAAP will are subject through include

to like the call Jim. that, I to turn With would over

Jim Bidzos

while Good standards high and quarter critical operational results ICANN you required afternoon everyone We Thank to solid with agreements. financial pleased I'm joining for the strengthen operational to complying you, our delivered internet and performance these of infrastructure report continuing VeriSign. our another thank for us. and by David. to

the quarter, a March, totaled while domain grew base first At of name year-over-year end of X.X% with XX% year-over-year. domain .net rate growth the year-over-year, the X.X%. names and For revenues XXX.X million EPS grew .com

During the base million increased X names. domain just quarter, by over the domain name first

new quarter year-over-year with quarter. XX.X first delivered to registration and last perspective, compared a million new million From registrations the modest last increase a million XX.X X.X year

XX.X% rate ago. final remain believe XX.X% renewal the rates of rate renewal quarter Our first and that approximately for stable. last compared year a the renewal We XXXX will XX.X% the quarter to be

trend XXXX. and uncertainty expect reflects X.XX% modest in full updated base during registration recent now our the year Having in between trends name QX, This a of seen business. we the current the range and improvement domain rate of growth for X.X% macroeconomic

cash, securities current billion expiration. with first totaled financial in has and remained liquidity $X.XXX share at Our Share $XXX position $XXX stable end equivalents X.X which no and authorized for marketable of shares. remained available end, program the million At during the quarter million million quarter the quarter. under repurchase and the cash repurchases

the the ICANN XX, April process ends to such the in the term which posted business of are comment we agreement, with process .net new agreement the is and ICANN the X-year aware, rights are our you of .net the of pricing, May unchanged. all as registry the ICANN, for registry usual public agreement The of are paid on current until XX. many June XX. terms renewal agreement open as ICANN's with fees As renewing Consistent on term

place On meeting .web. Monday, a notice Directors published ICANNs take this Board of Regarding website scheduled of a Sunday. to

consider final the is Board's agenda declaration. items to the One further IRP .web of

And consideration of the to also BAMC a BAMC XX the believe have March beyond which to then from web. meeting be that was related discussed minutes X on being that held recommendations recommendations X those ICANN from BAMC's resolution Board. meetings, no approved the a made means state publish requested minutes the X January related We towards final progress on the which we and that what to is published updates. posted, this .web but recommendations sent this new week information certain

And report like closing now will over when to I'd with remarks. George his completed call I return the turn to George. has financial

George Kilguss

Jim good everyone. afternoon, Thanks, and

the ended same delivered For quarter a income million, company increase generated an XXXX $XXX and year X.X% up revenue XXXX, XX, the the operating quarter of X.X% the March ago. quarter $XXX of million, same of of from from

QX to million quarter first produced totaled compared earlier. compared Net which a in XXXX. earlier to million, diluted earnings of same for flow year first respectively, million cash and $XXX the million free quarter XXXX income expense of for share $XXX compared million $X.XX cash $XXX Operating million a $XXX XXXX. quarter XXXX quarter for totaled the QX compared million first $XXX the the year $X.XX $XXX per with of $XXX to million was Operating and for of was for $XXX flow

XXXX now be and as our Jim to and to will mentioned $X.XX of I'll expected billion. base growth expected million be income updated This our $X.XXX $XXX full be earlier. expectation X.XX% Operating in is billion updated year now guidance. between $X.XXX range revenue billion. that is now name rate Revenue domain range to between the X.X% discuss reflects the

tax expense between are GAAP and an $XX interest nonoperating Interest XX%. $XX still between income income to to And $XX between still and rate million million net expected expense be to expenditures $XX expected is XX% be Capital of estimates be includes to million. still the expected to is effective which million.

of objectives sound deliver to we to during well XXXX and to financial forward demonstrate as continuing In continued look the our summary, as throughout first performance mission year. VeriSign on the quarter our

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

Jim Bidzos

and we Thank focus. return provided reliable value management which teams our shareholders. continue our thank manage responsibly in secure us disciplined infrastructure focus efficiently dedication I another to you, George. and solid well, strategic serve our allowing strongly to to and services, believe their quarter We want and our business for deliver to us and

and turbulence the of due there resolution economy we geopolitical modest continuing in on macroeconomic to signs there is our is of growth that .web. see pleased in progress some also stability and the While We're business. issues,

our attention Thanks prepared and we'll now for This today. for the call Operator, your ready concludes remarks we're questions. open your first the question. for

Operator

question [Operator comes first Instructions] Your Rob Baird. with from Oliver

Rob Oliver

Jim, call on a the lot here.

you questions. few kind just you I then here can thought guys? guess of at were outset, for of So us biggest kind I of give the what takeaways maybe kind the And set sense a of level to other had a you

Jim Bidzos

this something of like way, trivializing over trivial. is a to I'm we a even easy what simple simple sustained do mean it's I said time more Rob. difficult. to from and it is anything know may man but that Thanks, do but and doesn't because is wise sound Omaha period consistently just Okay. By the do

that securely So control. in we we business. uptime significant. our operated months That's infrastructure. in my the certainly our we our accomplished have to take things That's we to control We value obligations And mentioned We our there. important. can another number I on a what We That's That's we how people. focus X we of XX-year three, reliably efficiently how shareholders. always expenses. how that return remarks care That's and we and added quarter run as record. responsibly really

we the this reliable and they want secure infrastructure, is needs work. believe government This of of the is bodies, want that SLAs what U.S. the And requirements clear. our governing to shareholders is They So make and to contracts want the it what want. want. our performance operation It this customers work. our our and what course, ICANN and that

our that So that's that's that so consistently every That's for drivers this trend I that say quarter. what and say we I business would -- fundamental guess a what I is solid add we when reliance long-term just strive I and the quarter are that are what And adoption would I fundamental takeaways. mean -- the strong. us. line was Internet of those for

So quarter. another solid

Rob Oliver

since news. Okay. .web been much There's long so and been so had -- we've has

be read imminently to told coming It what decision into would meeting about this here some could be So you to indication there's just sounds I that an us rendered guess Sunday. like here. me trying this that

the curious about way you if that's think it. to know Just

Jim Bidzos

Well, a to time declined long on always we process. been has ICANNS Rob. speculate you're have and is It ICANNs right, process. It

the days. what as do. typically meetings them is more the when board pleased We're ICANN been when progress. within which resolutions I that on and does X Board, publishes may So ICANN thing it their one to there's speculate website about information I certainly can see. add that good won't meetings, is the pass This to

public be there are meeting, resolutions come Sunday should if the out So of by Tuesday. that they

Rob Oliver

I it. If helpful. so is of one. to in I that the really know one not conscious squeeze appreciate I anymore, only want great. could I'm I be X which Okay,

call what domains. think we've And you -- about Just weeks China did that else a bit around impacted down around end steady specifically you're At XX language, guys? talk anything or seeing you out in the improvements, something time, I about the to Jim, about sequential business. improvement of the talked the yours same my bit. talk with relative Can how would not in I macro and XX macro range stability reopening a necessarily tweak geographies Can in the the you the little kind little of guys you seen -- here? the you last and mean, high you

Jim Bidzos

the still Well, mostly chain give up that worst some etcetera. so effects, It's interest is, indication. I little. They're that certainly good, any I us. point not certainly don't rates can Employment a all, issues, general behind first to that is And would turbulence data view tell some of They're down recovery know COVID up. good. any the is good. with were recovery, the long-term turbulence supply there's that I specifics again. of There's economic certainly our associated can you

seeing is referring So kind of in our -- the watch. trend That would some call long we're turbulence line stability business. I that term a are But long to. one strong we that we what that's

of of is provide, unchanged. The fundamental the value the that we utility names services domain

I think going us. turbulence And quarter. improvement we're have an happy sort with the affecting that seen of we through and and so But it's just we're

Operator

with last We'll Arounian from Ygal take Citi. question our

Ygal Arounian

me. questions start Rob just just some and Maybe macro domains. the the follow-up I'll Appreciate on saving on from a

of end the start year? where year way raising end. year And than range -- high trends guys Are low you're high your you happen as how the you and to get end, versus to what gave the our came in guide full range expectations registrations stronger the the about to how the end XQ Can the lowering just terms in -- through to of the of low we are demand you thought? needs what work the you're talk were? You versus

George Kilguss

it's Ygal, George.

China. echo the various little first relative But registrations here And base a When again, lower We as saw We with quarter. name had that EMEA year-over-year. quarter. also were in we some some lower Jim the U.S. regions. QX in see the modest about gains our gains million and pretty little we X a excluding segment and mentioned, our China modest world, new year regions in mentioned, any also grow much units, our did domain our of to event, ago the when Sorry, we the rest around improvements was major name look all in did the we tepid as was here growing there. at of QX with prior or year-over-year. names in new flat in year-over-year. domain registrations, of bit Jim see The new the base registrars, here exception look China's

you're the say alluded just would Rob reopening, early for to, as as little I so days it's and acquiring, as us. as China And a far

haven't sooner we happens meaningful that can impact think domain it. that, That get than We are to I an yet out the higher of eye clearly seen later. end there name keeping help And us for extent but our any the to range. reopening base

Ygal Arounian

is XQ was more nice seeing renewal XQ past on from few kind couple Or bump Is really quarters typical which of had here just the rates quarters? a you from going and improve are I up to there. of follow XQ? that seasonality trend in the in line that So so the past

George Kilguss

Yes.

improvement and point were international relatively deeper there stable you the with at XX.X% year-over-year, renewal picture, more our fluctuations domestic And see international renewal QX. relatively first a are say big the is renewal rates as We from in you see markets. rates when when stable markets. versus in where quarter. renewal said there, more look XX.X% we rates in I'd an first -- I a So rates we it's the the look did in time little out,

renewal right sequentially improvement rates now seen I we are And them. see stable think so where year-over-year. pretty the And we've here

Ygal Arounian

on What agreement on if May Got see same, comments can't nothing's all way? .web, is it. of piece? guys I is for to of changing. the want the expand it What really to Or renewal? the so pretty the kind the the public process until of I public the through work from change expect factors A, things just you can here that just What to are in or XX, you contracts kind post stand might this are do seamlessly? comment

Jim Bidzos

this Well, ICANN and will comments in process, comments response. will collected typically, in the be address

was contract the see part that, of and think question. out you I you really ICANN the done. negotiated And consistent coming and for features, course, answer with comment that with proposed the mentioned. as comment and put a out. your But as engaging is we process point That with can't its So until I of proposed totally up

done So comments on are the assessed and until it's reported by then next concludes. and step the ICANN,

Ygal Arounian

more take for some Okay. someone him, I'll too. so And and ask then ask -- I'll then him let I'll one

just understand here, So there? said long on the the registration goes happens? help it us that Maybe happens done. or one steps think step just for what this -- finishes. up? take let's from assume what to What the are it start hopefully What happens, time meaningful help if does let's part line process help all we can for say, opening assume the us it's that and of .web, you them How become just and for through .web about -- just closer to

Jim Bidzos

will holder speculate required There question. are want and to Sunday want includes speculate guidance our nothing One give done then security don't number followed. that things acquire some things of periods to protection processes But that all, they're be I come certain protected that that. is number .web. be -- what's any expense to can think beyond about have are periods exclusively have I where a I are to there done. to name. Sure. to helpful are you the where are meeting that be your think be and to are that And first in information is to of a I don't some there there There in that happen of certainly provided at or going we for revenue I Board XXXX trademark and there allowed their other domain

some a or just think certainly it's that roughly of expense cycles of happens, I there So no there's point, number the are that change all revenue what it said be does, this will But collectively, anything in I in if at months. number XXXX. whenever about

Operator

now to today's for back turn over concludes final will session. This question-and-answer the comments. I David call Atchley

David Atchley

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

Operator

your for you and disconnect. Thank conference. participation now today's concludes This you may

VeriSign (VRSN) 27 Apr 232023 Q1 Earnings call transcript