Verisign Reports: Revenue up 9%: Has Operating Margin of 61.5%

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VeriSign, Inc. (VRSN),today reported financial results for the second quarter of 2016.

VeriSign, Inc. and subsidiaries (“Verisign”) reported revenue of $286 million for the second quarter of 2016, up 9.1% from the same quarter in 2015. Verisign reported net income of $113 million and diluted earnings per share (diluted “EPS”) of $0.87 for the second quarter of 2016, compared to net income of $93 million and diluted EPS of $0.70 for the same quarter in 2015.

The operating margin was 61.5 percent for the second quarter of 2016 compared to 56.7 percent for the same quarter in 2015.

Business Highlights

  • Verisign Registry Services added 0.78 million net new names during the second quarter, ending with 143.2 million .com and .net domain names in the domain name base, which represents a 7.3% increase over the base at the end of the second quarter in 2015.
  • In the second quarter, Verisign processed 8.6 million new domain name registrations for .com and .net, as compared to 8.7 million for the same quarter in 2015.
  • The final .com and .net renewal rate for the first quarter of 2016 was 74.4 percent compared with 73.4 percent for the same quarter in 2015. Renewal rates are not fully measurable until 45 days after the end of the quarter.
  • Verisign announces an increase in the annual fee for a .net domain name registration from $7.46 to $8.20, effective Feb. 1, 2017, per its agreement with the Internet Corporation for Assigned Names and Numbers (ICANN).
  • Verisign ended the second quarter with cash, cash equivalents and marketable securities of $1.9 billion, a decrease of $8 million from year-end 2015

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

Comments

  1. DSmith says

    VeriSign’s financials are absurd.

    When is ICANN or the DOC going to do something about this no-bid contract?

    VeriSign generated $161 million in free cash flow in Q2 2016 alone.
    Non-GAAP operating margin hit an all-time high of 65.4%

    Now ICANN and VeriSign are pushing to extend the RA for another 6 years ending in 2024. Imagine how much free cash will be generated over the next 8 years through 2024!

    Post a comment if you feel the amount of money being generated from this monopoly is out-of-hand:
    https://forum.icann.org/lists/comments-com-amendment-30jun16/

    The amount of money and cash flow is absolutely INSANE. Why is ICANN or the DOJ not doing anything??

    The .com contract must be put out for a competitive bid and wholesale prices for .com domains will fall by more than half. It is simply the right thing to do rather than having billions and billions in free cash flow drop into the coffers of one company because of a no-bid contract.

    It’s time for Neustar, Affilias, Amazon Registry, Google, or any of the other large registries to step up and let they world know the .com contract can be managed for only a few dollars per domain!

    DSmith