Verisign reported its Q3 earnings, revealing substantial growth in its domain registration base. The company added 1.45 million domains to the combined .com and .net spaces, with a total of 10.6 million new registrations processed, a rise from 9.3 million in the same quarter last year and slightly higher than the 10.4 million from Q2 of this year.
While .com domains were the primary source of this growth, .net domains experienced a decline, losing 0.1 million registrations. Financially, Verisign’s revenue rose by 7.3% year over year to $419 million, and operating income saw a 5.6% increase to $284 million. Their net income also grew by 6.0%, reaching $213 million. Additionally, the company plans to issue a cash dividend of $0.77 per share to stockholders as of November 18 and repurchased $215 million worth of shares during the quarter.
Verisign has revised its growth guidance for the year, now forecasting an increase of 2.2% to 2.5% in the domain base, an update from its previous estimate of 1.2% to 2.0%. During an investor conference call, CEO Jim Bidzos commented on the positive impact of artificial intelligence on registration trends.
However, concerns were raised about Google’s AdSense for Domains and its implications. Bidzos acknowledged that Google has been moving away from domain monetization since 2011 and highlighted that companies relying on parked domain revenue have faced declining returns for years. Analysts were keenly interested in the potential impact of recent changes by Google, specifically regarding the shutdown of its AdSense for Domains program, on domain registrations and renewals. Bidzos noted that while this particular shift could hamper revenues, overarching registration trends remain robust.
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