Slide 1: Q3 2023 Earnings Conference Call
Q3 2023 Earnings Conference Call October 26, 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 internet navigation service that people around the world re
Slide 5: Business Highlights: Domain Name Base
Business Highlights Domain Name Base(1) at 173.9 Million Names, down 0.1% Y/Y 160.8 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
Slide 6: Business Highlights: New Name Registrations and Renewal Rate
Business Highlights 9.9 Million New Name Registrations in Q3 2023 9.9 Million in Q3 2022 • Q2 2023 renewal rate 73.4% New Name Registrations • Q3 2023 renewal rate expected to Millions and Renewal Rate Renewal Rate (1)(2) be approximately 73.4% 100% 12 compared with 73.7% for Q3 2022 90% • Ending Q3
Slide 7: Q3 2023 Financial Performance
Q3 2023 Financial Performance Revenue & Operating Income $ Millions 400 • Revenue of $376M, up 5.4% y/y 375 350 • Operating Income $254M 325 300 275 • Diluted EPS of $1.83 250 225 • Operating Cash Flow of $245M 200 175 (1) 150 • Free Cash Flow of $217M 125 100 • 915 Employees at September 30, 2023(2
Slide 8: Full Year 2023 Financial Guidance
Full Year 2023 Financial Guidance(1)(2) • Revenue • $1.490 billion to $1.495 billion; narrowed from $1.490 billion to $1.500 billion • Domain Name Base Growth • -0.4% to 0.4%; lowered from 0.0% to 1.0% • Operating Income • $0.995 billion to $1.000 billion; narrowed from $0.990 billion to $1.005 bill
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: Trademark notice
© 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.