VeriSign, Inc. (NASDAQ: VRSN) reported financial results for the fourth quarter and full yr 2022.
Fourth Quarter Financial Results
VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of $369 million for the fourth quarter of 2022, up 8.5 percent from the identical quarter in 2021. The operating margin was 66.5 percent for the fourth quarter of 2022 in comparison with 65.3 percent for a similar quarter of 2021. Verisign reported net income of $179 million and diluted earnings per share (diluted “EPS”) of $1.70 for the fourth quarter of 2022, in comparison with net income of $330 million and diluted EPS of $2.97 for a similar quarter in 2021. Net income for the fourth quarter of 2021 included recognition of a deferred income tax profit related to the transfer of certain non-US mental property between subsidiaries which increased net income by $165.5 million and increased diluted EPS by $1.49.
2022 Financial Results
Verisign reported revenue of $1.42 billion for 2022, up 7.3 percent from 2021. The operating margin for 2022 was 66.2 percent in comparison with 65.3 percent in 2021. Verisign reported net income of $674 million and diluted EPS of $6.24 for 2022, in comparison with net income of $785 million and diluted EPS of $7.00 in 2021. Net income for 2021 included the popularity of a deferred income tax profit related to the transfer of certain non-US mental property between subsidiaries which increased net income by $165.5 million and increased diluted EPS by $1.48.
“In 2022, we marked 25 years of uninterrupted availability for our global .com and .net resolution infrastructure. We also delivered solid financial performance for the quarter and the complete yr,” said Jim Bidzos, Executive Chairman and Chief Executive Officer.
Financial Highlights
- Verisign ended 2022 with money, money equivalents, and marketable securities of $980 million, a decrease of $225 million from year-end 2021.
- Money flow from operations was $217 million for the fourth quarter of 2022 and $831 million for the complete yr of 2022 compared with $206 million for a similar quarter in 2021 and $807 million for the complete yr of 2021.
- Deferred revenues as of Dec. 31, 2022, totaled $1.22 billion, a rise of $66 million from year-end 2021.
- In the course of the fourth quarter of 2022, Verisign repurchased 1.1 million shares of its common stock for $212 million. In the course of the full yr of 2022, Verisign repurchased 5.5 million shares of its common stock for $1.03 billion. As of Dec. 31, 2022, there was $859 million remaining for future share repurchases under the share repurchase program which has no expiration date.
Business Highlights
- Verisign ended the fourth quarter of 2022 with 173.8 million .com and .netdomain name registrations within the domain name base, a 0.2 percent increase from the top of the fourth quarter of 2021, and a net decrease of 0.4 million registrations through the fourth quarter of 2022.
- Within the fourth quarter of 2022, Verisign processed 9.7 million recent domain name registrations for .com and .net, as in comparison with 10.6 million for a similar quarter in 2021.
- The ultimate .com and .net renewal rate for the third quarter of 2022 was 73.7 percent in comparison with 75.0 percent for a similar quarter in 2021. Renewal rates aren’t fully measurable until 45 days after the top of the quarter.
- Verisign proclaims that it’ll increase the annual registry-level wholesale fee for every recent and renewal .com domain name registration from $8.97 to $9.59, effective Sept. 1, 2023.
