Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call July 25, 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 critical internet infrastructure and the expertise Our Mission of our teams enable us to reliably and accurately provide the critical DNS navigation service that Verisign enables the people around the world rely on more than ever for world to connect online commerce, work, educati
Slide 5: Business Highlights: Domain Name Base
Business Highlights: Domain Name Base Domain Name Base(1) Net Change 170.6 -1.84 million names end Q2-24, -2.2% Y/Y million names Q/Q Millions 157.6 million .com names and 13.0 million .net names 180 170 160 150 140 130 120 110 100 Domain Name Base 1) The domain name base as presented here is the ac
Slide 6: Business Highlights: Registration Metrics
Business Highlights: Registration Metrics New Name Registrations Preliminary Renewal Rate(1) Q3-24 Expiring Names 9.2 72.6% 37.8 million vs 74.1% last quarter million vs 10.2 million Q2-23, -10.4% Y/Y vs 73.4% last year Unchanged from Q3-23 .com/.net New Name Registrations Renewal rate 75.4% 76.0% 7
Slide 7: Capital Allocation
Capital Allocation Q2 Share Repurchases Free Cash Flow(1) $388 $821 million; 2.2 million shares million trailing 12 months Millions $1,200 $1,000 $800 $1,091 $1,032 $600 $754 5.5M $804 $883 $821 $400 $735 $700 shares $808 $687 5.6M 3.3M 4.2M shares $200 3.7M shares shares shares $0 2020 2021 2022 20
Slide 8: Financial Performance: Q2 2024
Financial Performance: Q2 2024 Revenue Operating Income $387 $266 million, +4.1% Y/Y million, +7.1% Y/Y $ Millions 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 $160 $151 $2.01 million million +12.3% Y/Y 1) F
Slide 9: Guidance: Full Year 2024
Guidance: Full Year 2024 Guidance(1)(2) Prior Domain Base Growth -3.0% to -2.0% -1.75% to +0.25% Revenue $1.553B to $1.563B $1.555B to $1.570B Operating Income $1.048B to $1.058B $1.047B to $1.062B Interest expense and non- Operating Income, Net $25M to $35M Unchanged expense Capital Expenditures $3
Slide 10: Summary
Summary • Delivered solid, consistent financial results Our strategic framework: • Generated $821 million in Free Cash Protect Flow(1) in 4 quarters ending Q2-2024 Grow Manage • Returned $1.09 billion in share repurchases in 4 quarters ending Q2- 2024 has been effective and instrumental in creating
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: © 2024 VeriSign, Inc. All rights reserved. VERISIGN and other trademarks, service marks, and
© 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.