Slide 1: Q1 2024 Earnings Conference Call
Q1 2024 Earnings Conference Call April 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 Mission • Our critical internet infrastructure and the expertise Verisign enables the of our teams enable us to reliably and accurately world to connect online provide the critical DNS navigation service that with reliability and people around the world rely on more than ever for co
Slide 5: Business Highlights: Domain Name Base
Business Highlights: Domain Name Base Domain Name Base(1) Net Change 172.5 -0.27 million names end Q1-24, -1.3% Y/Y million names Q/Q Millions 159.4 million .com names and 13.1 million .net names 180 170 160 150 140 130 120 110 100 Domain Name Base 5
Slide 6: Business Highlights: Registration Metrics
Business Highlights: Registration Metrics New Name Registrations Preliminary Renewal Rate(1) Q2-24 Expiring Names 9.5 74.0% 39.2 million vs 73.2% last quarter million vs 10.3 million Q1-23, -8.1% Y/Y vs 75.5% last year vs 39.3 million Q2-23 .com/.net New Name Registrations Renewal rate 75.4% 76.0% 7
Slide 7: Capital Allocation
Capital Allocation Q1 Share Repurchases Free Cash Flow(1) $260 $808 million 1.3 million shares million Trailing 12 months Millions $1,200 $1,000 $800 $1,032 $600 $754 5.5M $923 $804 $883 $400 $735 $700 shares $808 $808 $687 4.5M 3.3M 4.2M shares $200 3.7M shares shares shares $0 2020 2021 2022 2023
Slide 8: Financial Performance: Q1 2024
Financial Performance: Q1 2024 Revenue Operating Income $384 $259 million, +5.5% Y/Y million, +7.3% Y/Y $ Millions 400 375 Revenue Operating Income 350 325 300 275 250 225 200 175 150 125 100 Operating Cash Flow Free Cash Flow(1) Earnings per Share $257 $254 $1.92 million million +12.9% Y/Y 1) Free
Slide 9: Guidance: Full Year 2024
Guidance: Full Year 2024 Guidance(1)(2) Prior Domain Base Growth -1.75% to +0.25% -1.0% to +1.0% Revenue $1.555B to $1.570B $1.560B to $1.580B Operating Income $1.047B to $1.062B $1.045B to $1.065B Interest expense and non- Operating Income, Net $25M to $35M $30M to $40M expense Capital Expenditures
Slide 10: Summary
Summary Our strategic framework: • Delivered solid, consistent financial Protect results Grow • Generated $808 million in Free Cash Manage Flow in 4 quarters ending Q1-2024 has been effective and • Returned $923 million in share instrumental in creating repurchases in 4 quarters ending Q1- and uphol
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) Four Quarters Ended March 31, 2024 Net Income $ 833.0 Interest expense 75.3 Income tax expense 163.7 Depreciation and amortization 42.3 Stock-based compensation 60.9 Unreal
Slide 14: Classification of Stock-Based Compensation
Classification of Stock-Based Compensation (In Millions) Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 Cost of revenues $ 2.0 $ 1.9 $ 1.3 Research and development 2.6 $ 2.5 2.5 Selling, general and administrative 10.5 $ 10.3 10.0 Total stock-based compensation expense $ 15.1 $ 1
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.