Slide 1: Q1 2023 Earnings Conference Call
Q1 2023 Earnings Conference Call April 27, 2023
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 Financial Performance / Guidance Closing / Q&A / Appendix 3
Slide 4: Introduction
Introduction Our Mission – enable the world to connect online with reliability and confidence, anytime, anywhere • Our critical internet infrastructure and the expertise of our teams enable us to reliably and accurately provide the critical DNS navigation service that people around the world rely on
Slide 5: Business Highlights: Domain Name Base
Business Highlights Domain Name Base(1) at 174.8 Million Names, up 0.1%Y/Y 161.6 Million .com Names and 13.2 Million .net Names Millions 180 170 160 150 140 130 120 110 100 .com/.net Domain Name Base 1) The domain name base as presented here is the active zone plus the number of domain names that ar
Slide 6: Business Highlights: New Name Registrations and Renewal Rate
Business Highlights 10.3 Million New Name Registrations in Q1 2023 Compared with 10.2 Million in Q1 2022 • Q4 2022 renewal rate 73.3% New Name Registrations • Q1 2023 renewal rate expected to Millions and Renewal Rate Renewal Rate (1)(2) be approximately 75.6% 100% 12 compared with 75.9% in Q1 2022
Slide 7: Q1 2023 Financial Performance
Q1 2023 Financial Performance Revenue & Operating Income $ Millions 400 • Revenue of $364M, up 5.1% y/y 375 350 • Operating income $241M 325 300 275 • Diluted EPS of $1.70 250 225 • Operating Cash Flow of $259M 200 175 (1) 150 • Free Cash Flow of $253M 125 100 • 922 Employees at March 31, 2023 Reven
Slide 8: Full Year 2023 Financial Guidance
Full Year 2023 Financial Guidance(1)(2) • Revenue • $1.490 billion to $1.505 billion; narrowed from $1.485 billion to $1.505 billion • Domain Name Base Growth • 0.5% to 2.25%; narrowed from 0.0% to 2.5% • Operating Income • $0.990 billion to $1.005 billion; narrowed from $0.985 billion to $1.005 bil
Slide 9: Q&A Appendix
Q&A Appendix 9
Slide 10: 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 11: 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. 11
Slide 12: Classification of Stock-Based Compensation
Classification of Stock-Based Compensation (In Millions) 12
Slide 13: © 2023 VeriSign, Inc. All rights reserved. VERISIGN and other trademarks, service marks, and
© 2023 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.