VeriSign, Inc: Comprehensive Corporate Profile

Quick Facts / Company Snapshot

• Legal Name: VeriSign, Inc.
• Stock Symbol: VRSN (Nasdaq Global Select Market)
• Headquarters: 12061 Bluemont Way, Reston, Virginia 20190
• Incorporation Date: April 12, 1995
• State of Incorporation: Delaware
• Total Revenue (2024): $1.56 billion
• Operating Income (2024): $1.06 billion
• Operating Margin (2024): 67.9%
• Net Income (2024): $785.7 million
• Diluted Earnings Per Share (2024): $8.00
• Total Assets (2024): $1.41 billion
• Cash, Cash Equivalents, and Marketable Securities (2024): $599.9 million
• Core Product: .com and .net Top-Level Domain Registry Services
• Domain Name Base (2024): 169.0 million registrations
• New Domain Registrations (2024): 37.4 million
• Infrastructure Reliability: 100% availability for .com and .net resolution infrastructure for over 27 years
• Employees (2024): 932 full-time employees
• Share Repurchases (2024): 6.6 million shares for $1.21 billion
• Chairman & CEO: D. James Bidzos

Company Overview

Verisign, Inc. stands as a premier global provider of critical internet infrastructure and domain name registry services. The company fundamentally enables internet navigation for many of the world’s most recognized domain names, serving as a steward of the internet. Its core mission revolves around enabling the world to connect online with reliability and confidence, anytime and anywhere. This mission is underpinned by a philosophy of internet stewardship, ensuring that every decision and action preserves the trust placed in the company by billions of users.

The company operates the authoritative directory for all .com, .net, and .name generic top-level domains (gTLDs), as well as for certain transliterations of .com and .net in various native languages and scripts, known as internationalized generic top-level domains (IDN gTLDs). Furthermore, Verisign operates the authoritative directory for the .cc country code top-level domain (ccTLD) and provides technical back-end systems for the .edu gTLD.

Verisign’s role extends to the core of the internet’s Domain Name System (DNS). It performs the Root Zone Maintainer function under an agreement with the Internet Corporation for Assigned Names and Numbers (ICANN). Additionally, the company operates two of the world’s thirteen global internet root servers. This infrastructure is vital for the security, stability, and resiliency of the internet, supporting the majority of global e-commerce.

The company’s operations infrastructure consists of secure data centers located in Dulles, Virginia; Ashburn, Virginia; and New Castle, Delaware, along with more than 200 other points of presence globally. This purpose-built network processes an average of more than 400 billion transactions every day. The infrastructure is designed to operate continuously, incorporating architectural concepts such as protected domains and restricted nodes to ensure data integrity and availability.

Verisign’s business model is characterized by high-volume, critical transaction processing. The company maintains a Shared Registration System that allows registrars to enter new second-level domain names into central directories and manage existing names. The stability of this system is paramount, as demonstrated by the company’s record of providing 100% availability for its .com and .net resolution infrastructure for more than 27 years.

Business Segments

Verisign operates as a single reportable segment. The company’s chief operating decision maker, the Executive Chairman, President, and Chief Executive Officer, assesses performance and allocates resources based on consolidated revenues, operating income, and net income. While the company does not manage its business through distinct operational segments with separate profit and loss statements, its revenue streams are derived from specific registry services and infrastructure functions.

Domain Name Registry Services Profile

• Segment Revenue (2024): $1.56 billion
• Percentage of Total Revenue: 100%
• Operational Scope: Management and operation of TLD registries including .com, .net, .name, .cc, and .edu.

The primary revenue driver for Verisign is the operation of domain name registries. This involves maintaining the definitive database of registered domain names for the TLDs under its management. The company generates revenue primarily through fees charged to registrars for the initial registration and subsequent renewal of domain names.

For the .com and .net registries, fees are determined pursuant to agreements with ICANN. As of 2024, the fee per annual domain name registration for .com was $9.59 (increased to $10.26 effective September 1, 2024) and for .net was $10.91 (effective February 1, 2024). The company also offers promotional incentive-based discount programs to registrars based on market conditions.

The demand for this segment is driven by the growth in online advertising, e-commerce, and the global internet user base. The business is also influenced by marketing activities carried out by Verisign and its network of registrars. Despite competitive pressures from other TLDs and alternative online presence services like social media, the .com and .net TLDs remain the standard for global business, supporting the vast majority of global e-commerce.

History and Evolution

Verisign was incorporated in Delaware on April 12, 1995. As the company approaches its 30th anniversary in April 2025, its history reflects a focused evolution into a specialized provider of internet infrastructure.

Founding and Early Years: The company was founded with a focus on digital security and internet infrastructure. Since its inception, Verisign has played a pivotal role in the development of the commercial internet. D. James Bidzos, the current Executive Chairman, President, and CEO, has been serving as Chairman of the Board since the company’s founding (with a brief period as Vice Chairman).

Strategic Realignment: Over the decades, Verisign has streamlined its operations to focus specifically on its core competency: domain name registry services and internet infrastructure. The company divested non-core assets to concentrate on its mission of internet stewardship. This strategic focus has resulted in fourteen consecutive years of revenue and operating income growth since the divestiture of these non-core assets.

Infrastructure Milestones: A defining characteristic of Verisign’s history is its operational excellence. The company has maintained 100% availability for its .com and .net resolution infrastructure for over 27 years. This reliability record is a testament to the company’s continuous investment in technology and infrastructure resilience.

Regulatory Evolution: The company’s history is also marked by its evolving relationship with regulatory bodies. The .com Registry Agreement with ICANN and the Cooperative Agreement with the U.S. Department of Commerce (DOC) have undergone various amendments. Notably, Amendment 35 to the Cooperative Agreement, entered into on October 26, 2018, allowed for greater flexibility in pricing while maintaining content neutrality commitments. In 2024, the company successfully renewed both the .com Registry Agreement with ICANN and the Cooperative Agreement with the NTIA for another six-year term, securing its operational mandate through 2030.

Products and Services

Verisign’s product portfolio is concentrated on domain name registry services and critical internet infrastructure functions. These services are essential for the functioning of the global internet.

.com Registry Services Profile

• Revenue Contribution: Major portion of total revenue (specific split not disclosed, but .com and .net combined drive nearly all revenue).
• Operational Scope: Operation of the authoritative directory for .com domain names.

The .com TLD is the preeminent domain extension for global commerce. Verisign operates this registry under a Registry Agreement with ICANN and a Cooperative Agreement with the DOC. The current term extends through November 30, 2030. The service allows individuals and organizations to establish a reliable online identity. The .com registry supports the security, stability, and resiliency of the internet’s DNS.

.net Registry Services Profile

• Revenue Contribution: Significant portion of total revenue.
• Operational Scope: Operation of the authoritative directory for .net domain names.

The .net TLD is another foundational domain extension operated by Verisign. The registry is operated under an agreement with ICANN, renewed on June 29, 2023, with a current term extending to July 1, 2029. Similar to .com, Verisign provides authoritative resolution and registration services, ensuring high availability and security for .net users.

Root Zone Maintainer Services Profile

• Revenue Contribution: Included in overall operational revenue (specific amount not disclosed separately as a line item).
• Operational Scope: Provisioning and publishing the authoritative root zone data.

Verisign performs the Root Zone Maintainer function under an agreement with ICANN. This critical function involves maintaining the core of the internet’s DNS by publishing the root zone file and making it available to all root server operators. The current Root Zone Maintainer Service Agreement (RZMA) was renewed on October 20, 2024, and extends to October 20, 2032.

Other Registry Services (.name, .cc, .edu) Profile

• Revenue Contribution: Minor portion of total revenue.
• Operational Scope: Registry operations for .name, .cc, and back-end services for .edu.

Verisign operates the .name gTLD and the .cc ccTLD (under an agreement with Cocos (Keeling) Islands). Additionally, it provides technical back-end systems for the .edu gTLD and certain other gTLDs. These services leverage the same robust infrastructure used for .com and .net, providing economies of scale and high reliability.

Brand Portfolio

Verisign’s brand portfolio is focused on its corporate identity and the specific TLDs it manages. The company relies on the strength of the Verisign brand to differentiate its services in the marketplace.

VERISIGN Brand Profile

• Brand Value: Represents reliability, security, and internet stewardship.
• Market Position: Global leader in domain name registry services.

The VERISIGN brand is synonymous with critical internet infrastructure. The company has obtained trademark registrations for the VERISIGN mark and logo in the U.S. and various other countries. The brand serves as a trust signal for registrars and registrants, emphasizing the company’s record of 100% infrastructure availability.

Managed TLD Brands (.com, .net, .cc, .name) Profile

• Nature: Top-Level Domains managed by Verisign.
• Market Impact: .com is the world’s most recognized TLD.

While .com and .net are generic resources, Verisign’s management of them constitutes a significant brand association. The company engages in marketing campaigns to target growth in these domains, providing tools to registrars and end-users to facilitate domain registration. The .cc domain acts as a country code TLD but is marketed globally.

Geographical Presence

Verisign generates revenue globally, with a significant concentration in the United States. The company categorizes its geographical revenue based on the domicile of its registrars.

United States Profile

• Revenue (2024): $1.0355 billion
• Percentage of Total Revenue: 66.5% (Calculated: 1,035.5 / 1,557.4)
• Operational Footprint: Headquarters in Reston, VA; Data centers in Dulles, VA, Ashburn, VA, and New Castle, DE.

The United States is Verisign’s largest market and operational hub. The majority of its physical assets, including its primary data centers and executive offices, are located here. Revenue growth in this region was 4% in 2024 compared to 2023.

Europe, the Middle East and Africa (EMEA) Profile

• Revenue (2024): $249.6 million
• Percentage of Total Revenue: 16.0% (Calculated: 249.6 / 1,557.4)
• Operational Footprint: Verisign Sarl located in Switzerland.

EMEA represents the second-largest region for Verisign. The company maintains a subsidiary, Verisign Sarl, in Villars-sur-Glane, Switzerland. Revenue in this region grew by 9% in 2024, showing strong performance relative to other international markets.

Asia Pacific (APAC) Profile

• Revenue (2024): $175.7 million
• Percentage of Total Revenue: 11.3% (Calculated: 175.7 / 1,557.4)
• Operational Footprint: Subsidiaries in Australia and China (Beijing).

The APAC region includes key markets such as China, Australia, Japan, and Singapore. Revenue growth in APAC was limited to 1% in 2024, primarily due to a 13% decline in revenues from China caused by lower demand and regulatory conditions. The company operates Verisign Internet Technology Services (Beijing) Co., Ltd in China and Verisign Australia in Melbourne.

Other Regions Profile

• Revenue (2024): $96.6 million
• Percentage of Total Revenue: 6.2% (Calculated: 96.6 / 1,557.4)
• Operational Footprint: Includes Canada and Latin American countries.

This segment encompasses the remaining international markets. Revenue in these regions increased by 1% in 2024 compared to the previous year.

Financial Performance Analysis

Verisign has demonstrated consistent financial growth and stability. In 2024, the company achieved its fourteenth consecutive year of revenue and operating income growth.

Consolidated Performance Trends:

• Revenue Growth: Revenue increased from $1.42 billion in 2022 to $1.49 billion in 2023, and further to $1.56 billion in 2024. This represents a steady upward trajectory driven by price increases and domain base management.
• Operating Income Growth: Operating income rose from $943.1 million in 2022 to $1.00 billion in 2023, and to $1.06 billion in 2024. This indicates strong operational efficiency and cost management.
• Net Income Volatility: Net income showed some volatility, increasing from $673.8 million in 2022 to $817.6 million in 2023, but decreasing to $785.7 million in 2024. This decrease in 2024 was primarily influenced by income tax expense variations.

Profit and Loss Analysis

Revenue Analysis:

• Total Revenue (2024): $1.5574 billion.
• Growth Rate: 4.3% increase compared to 2023.
• Drivers: The increase was primarily due to price increases for .com and .net domain name registrations. This was partially offset by a 2.1% decrease in the domain name base.

Operating Profit and Margins:

• Operating Income (2024): $1.0582 billion.
• Operating Margin (2024): 67.9% (Calculated: 1,058.2 / 1,557.4).
• Trend: Operating income increased by 5.7% compared to 2023. The margin improvement reflects the company’s scalable business model where incremental revenue flows efficiently to the bottom line.

Net Profit:

• Net Income (2024): $785.7 million.
• Net Margin (2024): 50.4% (Calculated: 785.7 / 1,557.4).
• Impact Factors: The effective tax rate in 2024 was 23%, significantly higher than the 16% rate in 2023, primarily due to the impact of OECD Pillar 2 minimum tax and prior year one-time tax benefits.

Expenses:

• Cost of Revenues: $191.4 million (12.3% of revenue). Decreased from $197.3 million in 2023.
• Research and Development: $96.7 million (6.2% of revenue). Increased from $91.0 million in 2023.
• Selling, General and Administrative: $211.1 million (13.6% of revenue). Increased from $204.2 million in 2023.
• Interest Expense: $75.3 million. Remained consistent with the prior year.

Balance Sheet Analysis

Assets:

• Total Assets (2024): $1.4065 billion, down from $1.7490 billion in 2023.
• Cash and Investments: Cash, cash equivalents, and marketable securities totaled $599.9 million.
• Property and Equipment, Net: $224.5 million.
• Deposits to Acquire Intangible Assets: $145.0 million held as a deposit for the .web gTLD rights.
• Deferred Tax Assets: $281.3 million.

Liabilities:

• Total Liabilities (2024): $3.3644 billion.
• Senior Notes (Long-term): $1.4925 billion.
• Current Senior Notes: $299.8 million (related to 2025 Notes).
• Deferred Revenues: $973.5 million (Current) and $330.7 million (Long-term). This represents fees collected for domain registrations that will be recognized over the registration term.

Equity:

• Stockholders’ Deficit: $(1.958) billion.
• Retained Earnings (Accumulated Deficit): $(12.601) billion.
• Analysis: The negative equity position is a result of the company’s aggressive share repurchase program, where treasury stock purchases exceed retained earnings. This is a strategic choice to return capital to shareholders rather than a sign of financial distress, given the strong cash flows.

Liquidity Position:

• The company maintains $599.9 million in liquidity through cash and marketable securities.
• It has a $200 million unsecured revolving credit facility, which had no outstanding borrowings as of December 31, 2024.

Cash Flow Analysis

Operating Cash Flow:

• Net Cash Provided by Operating Activities (2024): $902.6 million.
• Trend: Increased by 6% from $853.8 million in 2023.
• Drivers: Driven principally by cash receipts from customers for domain renewals and registrations, offset by cash paid for taxes and operating expenses.

Investing Cash Flow:

• Net Cash Provided by Investing Activities (2024): $286.3 million.
• Activity: Primarily relates to proceeds from maturities and sales of marketable securities ($1.195 billion) exceeding purchases of marketable securities ($880.7 million).
• Capital Expenditures: Purchases of property and equipment were $28.1 million.

Financing Cash Flow:

• Net Cash Used in Financing Activities (2024): $(1.222) billion.
• Primary Use: Repurchase of common stock totaling $1.226 billion.
• Other: Proceeds from employee stock purchase plan contributed $12.3 million.

Free Cash Flow Insights:

• While not explicitly labeled “Free Cash Flow” in the table, operating cash flow of $902.6 million minus capital expenditures of $28.1 million suggests a very strong free cash flow generation capability, supporting the substantial share buybacks.

Board of Directors and Leadership Team

Verisign’s governance structure includes a Board of Directors with eight nominees for the 2025 Annual Meeting. The leadership is spearheaded by D. James Bidzos.

D. James Bidzos

• Roles: Chairman of the Board, Executive Chairman, President, and Chief Executive Officer.
• Profile: Founder of the company. Served as Executive Chairman since August 2009 and CEO since August 2011. Resumed the role of President in April 2024. Internet and security industry pioneer with expertise in technology central to the company’s business.

Timothy Tomlinson

• Role: Lead Independent Director.
• Committees: Audit (Chair), Cybersecurity.
• Profile: Director since 2007 (and previously 1995-2002). Extensive experience in corporate legal matters, finance, and mergers and acquisitions. Former General Counsel of Portola Minerals Company.

Thomas F. Frist III

• Role: Independent Director.
• Committees: Compensation (Chair), Corporate Governance and Nominating.
• Profile: Principal of Frist Capital, LLC. Provides expertise in business administration, finance, and operations. Chairman of the Board of HCA Healthcare, Inc.

Jamie S. Gorelick

• Role: Independent Director.
• Committees: Corporate Governance and Nominating (Chair), Compensation.
• Profile: Partner at Wilmer Cutler Pickering Hale and Dorr LLP. Former Deputy Attorney General of the United States. Expertise in legal, policy, and national security issues.

Yehuda Ari Buchalter

• Role: Independent Director.
• Committees: Cybersecurity (Chair), Corporate Governance and Nominating.
• Profile: CEO of Place Exchange, Inc. Expertise in building and leading technology companies, with specific knowledge in cybersecurity and risk management.

Kathleen A. Cote

• Role: Independent Director.
• Committees: Audit.
• Profile: Former CEO of Worldport Communications, Inc. Expertise in technology and operations overseeing global companies.

Courtney D. Armstrong

• Role: Independent Director.
• Committees: Audit, Compensation.
• Profile: Chief Operating Officer at Paramount Pictures. Expertise in business and legal matters, including contract negotiation and financial management.

Debra W. McCann

• Role: Independent Director.
• Committees: Audit.
• Profile: Executive Vice President and CFO of Unisys Corporation. Significant expertise in financial management, treasury, and investor relations within large technology companies.

Executive Officers:

• George E. Kilguss, III: Executive Vice President and Chief Financial Officer (Announced retirement effective May 31, 2025).
• Danny R. McPherson: Executive Vice President, Engineering, Operations, and Chief Security Officer.
• Thomas C. Indelicarto: Executive Vice President, General Counsel and Secretary.

Subsidiaries, Associates, Joint Ventures

Verisign operates through several subsidiaries globally. While revenue for individual subsidiaries is not broken out in detail, their roles are tied to regional operations and marketing.

• Verisign Sarl: Located in Switzerland. Functions as the hub for EMEA operations.
• Verisign Australia: Located in Melbourne, Victoria. Supports operations in the APAC region.
• Verisign Internet Technology Services (Beijing) Co., Ltd: Located in Beijing, China. Focuses on the Chinese market, which is a significant component of the APAC region.
• Nu Dotco, LLC (NDC): An entity associated with the application for the .web gTLD rights.

Physical Properties

Verisign owns its significant properties and leases smaller office and data center locations globally.

Owned Properties:

• Reston, Virginia: Corporate headquarters and primary facility.
• New Castle, Delaware: Data center facility.
• Dulles, Virginia: Data center facility.

Leased Properties:

• Global Points of Presence: Over 200 points of presence around the world.
• International Offices: Leased office spaces in locations including Switzerland, Australia, and China.

The company considers its existing facilities to be in good condition and suitable for the conduct of its business. The secure data centers are critical for maintaining the stability of the .com and .net registries.

Segment-wise Performance

As Verisign operates as a single segment, the performance analysis focuses on the consolidated operational metrics which serve as the proxy for segment performance.

Operational Performance (2024 vs 2023):

• Domain Name Base: Decreased by 2.1% to 169.0 million. This decline reflects lower demand in certain markets, particularly China, and shifts in registrar marketing strategies.
• New Registrations: Declined from 39.4 million in 2023 to 37.4 million in 2024.
• Renewal Rate: The renewal rate for Q3 2024 was 72.2%, compared to 73.5% in Q3 2023.

Financial Performance (2024 vs 2023):

• Revenue: Increased by 4.3% to $1.56 billion. This demonstrates that price increases effectively offset the volume decline in the domain base.
• Operating Income: Increased by 5.7% to $1.06 billion. The company successfully managed costs, with Cost of Revenues decreasing by 3% and Interest Expense remaining flat.

Founders

D. James Bidzos: Mr. Bidzos is a central figure in Verisign’s history. He is a founder of the company and has served as Chairman of the Board since its founding in April 1995 (excluding a period as Vice Chairman). His leadership has been continuous, serving as Executive Chairman, President, and CEO. Prior to Verisign, he was President and CEO of RSA Data Security, Inc., a cryptographic security company. His expertise lies in the technology central to the company’s business and he is recognized as an internet and security industry pioneer.

Shareholding Pattern

The shareholding structure includes significant institutional investors and insider holdings.

Principal Shareholders (Beneficial Owners > 5%):

• Warren Buffett (Berkshire Hathaway, Inc.): Owns 13,271,457 shares, representing 14.10% of the company. This is the largest single shareholding stake.
• The Vanguard Group: Owns 10,322,372 shares, representing 10.97%.
• BlackRock, Inc.: Owns 8,537,969 shares, representing 9.07%.
• Ninety One UK Ltd.: Owns 5,234,855 shares, representing 5.56%.

Directors and Executive Officers:

• D. James Bidzos: Owns 508,840 shares (less than 1%).
• Total Directors and Executive Officers Group: Collectively own 793,486 shares (less than 1%).

Parent

Verisign, Inc. does not have a parent company. It is a publicly traded independent entity with no single controlling majority shareholder, although Berkshire Hathaway holds a significant minority stake.

Investments and Capital Expenditure Plans

Verisign’s investment strategy focuses on capital preservation and maintaining the robustness of its critical infrastructure.

Capital Expenditures (Capex):

• 2024 Spending: $28.1 million.
• Trend: Decreased from $45.8 million in 2023.
• Focus: Investments are primarily directed towards property, equipment, and computer software necessary to maintain and upgrade the global infrastructure and data centers.

Research and Development (R&D):

• 2024 Spending: $96.7 million.
• Focus: R&D efforts are dedicated to enhancing the security, stability, and resiliency of the DNS and internet infrastructure. This includes mitigating cyber threats and adapting to evolving internet protocols.

Strategic Priorities:

• Acquisition of .web: The company has paid a deposit of $145.0 million to acquire the contractual rights to the .web gTLD. This asset is currently recorded as a deposit pending the resolution of objections and ICANN approval.
• Share Repurchases: A major allocation of capital is towards share buybacks. In 2024, $1.21 billion was spent on repurchasing shares. The Board authorized an additional $1.11 billion for repurchases effective July 25, 2024.

Future Strategy

Verisign’s management strategy is centered on three strategic framework principles: “Protect Unconditionally, Grow Responsibly, and Manage Continuously.”

Market Focus:

• Infrastructure Resilience: The company plans to continue investing in its infrastructure to handle increasing internet traffic and cyber threats, ensuring 100% availability for .com and .net.
• Content Neutrality: Verisign is committed to operating the .com gTLD in a content-neutral manner, ensuring equal access for all registrants.

Expansion Initiatives:

• Developing Markets: The company seeks to expand its services into developing and emerging economies. However, it acknowledges risks associated with varying levels of internet infrastructure and regulatory environments in these regions.
• New gTLDs: Verisign aims to launch and manage new gTLDs, including IDNs, to capture new segments of the market.
• .web Acquisition: Successfully completing the acquisition and delegation of the .web domain remains a key strategic objective to expand the registry portfolio.

Key Strengths

• Critical Infrastructure Monopoly: As the sole operator of .com and .net, Verisign holds a unique position in the internet ecosystem. The .com domain is the de facto standard for global business.
• Unmatched Reliability: The company has an unbroken record of providing 100% availability for the .com and .net resolution infrastructure for over 27 years.
• Strong Cash Generation: The business model generates substantial operating cash flows ($902.6 million in 2024) with relatively low capital intensity, allowing for significant shareholder returns.
• Long-term Contracts: The renewal of the .com Registry Agreement through 2030 and the Cooperative Agreement with the DOC provides long-term stability and visibility.
• Scalable Operations: The proprietary Shared Registration System and global constellation of servers allow the company to process hundreds of billions of transactions daily with high efficiency.

Key Challenges and Risks

Regulatory Risks:

• Price Caps: The company operates under strict pricing restrictions for .com (maximum 7% annual increase in the final four years of each six-year term).
• Government Oversight: The Cooperative Agreement with the U.S. Department of Commerce subjects the company to government oversight regarding pricing and vertical integration.
• International Regulation: Regulations in China requiring government-issued licenses for gTLDs have negatively impacted demand. Failure to comply with evolving regulations in jurisdictions like the EU (NIS 2) could impose significant costs.

Operational Risks:

• Cybersecurity Threats: As a critical infrastructure operator, Verisign faces constant and sophisticated cyber-attacks, including DDoS attacks. A successful breach could severely damage its reputation and operations.
• Reliance on Third Parties: The business depends on registrars to market and sell domain names. Consolidation or strategic shifts among registrars could negatively impact revenue.

Market Risks:

• Domain Base Decline: The domain name base decreased by 2.1% in 2024. Continued declines in new registrations or renewal rates due to economic conditions or alternative online presence technologies (social media, apps) pose a threat to growth.
• Competition: Competition from other gTLDs, ccTLDs, and blockchain namespaces creates pressure on the legacy .com and .net domains.

Financial Risks:

• Taxation: Changes in tax laws, such as the OECD Pillar 2 minimum tax, have increased the effective tax rate (23% in 2024 vs 16% in 2023), impacting net income.

Conclusion and Strategic Outlook

Verisign, Inc. remains a cornerstone of the global digital economy. Its stewardship of the .com and .net registries places it at the very center of internet commerce and communication. The company’s financial performance in 2024 underscores the resilience of its business model: despite a slight contraction in the total domain name base, Verisign achieved revenue and operating income growth through strategic pricing power and disciplined cost management.

Looking ahead, the company’s strategic outlook is defined by stability and shareholder return. With the renewal of key agreements securing its franchise through 2030, Verisign is well-positioned to generate consistent cash flows. The primary challenges lie in navigating a maturing domain market, managing regulatory complexities in international jurisdictions like China, and maintaining the impeccable security standards required of a root zone maintainer. The company’s aggressive share repurchase program indicates confidence in its cash generation capabilities and a commitment to delivering value to shareholders. Verisign continues to balance its role as a “steward of the internet” with its status as a highly profitable corporate entity.

Official Site: https://www.verisign.com

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.