Slide 1: Q3 2024 Earnings Conference Call
Q3 2024 Earnings Conference Call October 24, 2024
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure Statements in this presentation other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not li
Slide 3: Agenda
Agenda Introduction Business Highlights Capital Allocation Financial Performance Guidance Summary / Q&A / Appendix 3
Slide 4: Introduction
Introduction Our Mission • Our critical internet infrastructure and the expertise of our teams enable us to reliably and accurately Verisign enables the provide the critical DNS navigation service that world to connect online people around the world rely on more than ever for with reliability and co
Slide 5: Business Highlights: Domain Name Base
Business Highlights: Domain Name Base Domain Name Base(1) Net Change 169.6 -1.1 million names end Q3-24, -2.5% Y/Y million names Q/Q Millions 156.7 million .com names and 12.9 million .net names 180 170 160 150 140 130 120 110 100 .com/.net Domain Name Base 1) The domain name base as presented here
Slide 6: Business Highlights
Business Highlights New Name Registrations Q3 Preliminary Renewal Rate(1) Q4-24 Expiring Names 9.3 72.3% 36.5 million vs 72.7% last quarter million vs 9.9 million Q3-23, -6.1% Y/Y vs 73.5% last year vs 37.3 million Q4-23 .com/.net New Name Registrations Renewal rate 75.4% 76.0% 75.9% 75.5% 74.1% 75.
Slide 7: Capital Allocation
Capital Allocation Q3 Share Repurchases Free Cash Flow(1) $301 $852 million; 1.7 million shares million trailing 12 months Millions $1,400 $1,200 $1,000 $800 $1,172 $1,032 $600 $883 $735 $700 $400 $804 $808 $852 $687 $754 6.3M 5.5M 4.2M shares 3.7M 3.3M shares $200 shares shares shares $0 2020 2021
Slide 8: Financial Performance: Q3 2024
Financial Performance: Q3 2024 Revenue Operating Income $391 $269 $ Millions million, +3.8% Y/Y million, +5.9% Y/Y 425 400 Revenue Operating Income 375 350 325 300 275 250 225 200 175 150 125 100 Operating Cash Flow Free Cash Flow(1) Earnings per Share $253 $248 $2.07 million million +13.1% Y/Y 1) F
Slide 9: Guidance: Full Year 2024
Guidance: Full Year 2024 Guidance(1)(2) Prior Domain Base Growth -2.9% to -2.3% -3.0% to -2.0% Revenue $1.554B to $1.559B $1.553B to $1.563B Operating Income $1.054B to $1.059B $1.048B to $1.058B Interest expense and non- Operating Income, Net $32M to $42M $25M to $35M expense Capital Expenditures $
Slide 10: Summary
Summary • Delivered another quarter of operational and financial stability by Our strategic framework: focusing on our mission as a critical internet infrastructure operator Protect • Extended our 27 years of 100%, Grow uninterrupted availability for the .com/ Manage .net domain name resolution syst
Slide 11: Q&A / Appendix
Q&A Appendix 11
Slide 12: Non-GAAP Financial Measures
Non-GAAP Financial Measures Verisign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, management typically discloses and discusses certain non-GAAP financial measures on investor conf
Slide 13: Reconciliation of Adjusted EBITDA & Free Cash Flow
Reconciliation of Adjusted EBITDA & Free Cash Flow Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA: (In Millions) Reconciliation of Operating Cash Flow to Free Cash Flow:(1) 1) The sum of the amounts in the columns and rows may not match the total amounts shown due to rounding. 13
Slide 14: Classification of Stock-Based Compensation
Classification of Stock-Based Compensation (In Millions) 14
Slide 15: Trademark notice
© 2024 VeriSign, Inc. All rights reserved. VERISIGN and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.