Slide 1: Q4 and Full Year 2023 Earnings Conference Call
Q4 and Full Year 2023 Earnings Conference Call February 8, 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 Financial Performance / Guidance Closing / Q&A / Appendix 3
Slide 4: Introduction
Introduction Our Mission Verisign enables the • Our critical internet infrastructure and the expertise 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: Capital Allocation
Capital Allocation Q4 Share Repurchases Free Cash Flow(1) $223 $808 Millions million million 2023 1.1 million shares $1,200 $1,000 $800 $600 $400 $1,032 $804 $883 $808 $738 $714 $735 $687 $700 $754 3.9M 3.3M 5.5M 4.2M $200 3.7M shares shares shares shares shares $0 2019 2020 2021 2022 2023 Repurchas
Slide 6: Business Highlights
Business Highlights Domain Name Base(1) Net Change 172.7 -1.2 million names end Q4-23, -0.6% million names Q/Q Y/Y Millions 159.6 million .com names and 13.1 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 is the active zone
Slide 7: Business Highlights
Business Highlights New Name Registrations Q4 Preliminary Renewal Rate(1) Q1-24 Expiring Names 9.0 73.1% 40.9 million vs 73.5% last quarter million vs 9.7 million Q4-22, -7.5% Y/Y vs 73.3% last year vs 40.4 million Q1-23 .com/.net New Name Registrations Renewal rate 75.0% 75.4% 76.0% 75.9% 75.5% 74.
Slide 8: Financial Performance: Full Year
Financial Performance: Full Year Revenue Operating Income $1.49 $1.00 billion 2023 billion 2023 +4.8% Y/Y +6.1% Y/Y Billions $1.6 $1.49 $1.42 $1.4 $1.33 $1.23 $1.27 $1.2 $1.00 $1.0 $0.94 $0.87 $0.81 $0.82 $0.8 $0.6 $0.4 $0.2 $0.0 2019 2020 2021 2022 2023 Revenue Operating Income 8
Slide 9: Financial Performance: Q4 2023
Financial Performance: Q4 2023 Revenue Operating Income $380 $256 million, +3.0% Y/Y million, +4.4% 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(2) $204 $199 $2.60 million million +53% Y/Y 1) Free
Slide 10: Guidance: Full Year 2024
Guidance: Full Year 2024 Guidance (1)(2) Domain Base Growth -1.0% to 1.0% Revenue (billions) $1.560 to $1.580 Operating Income (billions) $1.045 to $1.065 Interest Expense and Non- Operating Income, Net Expense $30 to $40 (millions) Capital Expenditures (millions) $35 to $45 Effective Tax Rate 21% t
Slide 11: Summary
Summary Our strategic framework: • Delivered solid, consistent financial Protect results Grow • Exceeded 26 years of uptime in the Manage .com, .net domain name system has been effective and • Returned $883 million in share instrumental in creating repurchases during 2023 and upholding value for int
Slide 12: Q&A Appendix
Q&A Appendix 12
Slide 13: 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 14: 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) Year Ended December 31, 2023 Net Income $ 817.6 Interest expense 75.3 Income tax expense 158.9 Depreciation and amortization 44.1 Stock-based compensation 59.7 Unrealized l
Slide 15: Classification of Stock-Based Compensation
Classification of Stock-Based Compensation (In Millions) Three Months Ended September 30, December 31, 2023 2023 December 31, 2022 Cost of revenues $ 1.9 $ 1.9 $ 1.9 Research and development 2.5 2.5 2.3 Selling, general and administrative 10.3 11.1 10.2 Total stock-based compensation expense $ 14.7
Slide 16: 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.