Andrew Allemann Leave a Comment October 25, 2024

The .Com and .net domain portfolio decreased by 1.1 million domains in the last quarter.

Verisign, the registry for .Com and .net domains (NASDAQ: VRSN), disclosed its earnings report following the market’s closure yesterday.

In the third quarter, the firm announced revenue of $391 million, reflecting a year-over-year increase of 3.8%. Additionally, net income rose from $188 million in Q3 2023 to $201 million in the same quarter of this year.

The rise in numbers occurred even as the overall tally of .com and .net domains declined for the sixth straight quarter. By the end of the quarter, the total number of domains managed reached 169.6 million, reflecting a 2.5% decrease compared to the previous year. During this quarter, the count dropped by 1.1 million.

Historically, Verisign has pointed to China as a primary reason for this drop. However, the U.S. market experienced the largest decline in Q3, with around 850,000 names being lost. Meanwhile, the EMEA region recorded a minor uptick in domain registrations.

In a strategic move, Verisign raised the costs for new and renewing .com domains by 7%, bringing the price to $10.26, effective September 1. This adjustment is expected to help the company maintain revenue growth even if domain registrations fall.

Nonetheless, due to the current contract, there are no automatic price hikes planned for the next two years, putting pressure on the company to regain domain growth in order to sustain overall revenue increases. To tackle this, Verisign is launching new marketing initiatives with registrars aimed at enhancing registration numbers.

Verisign has refined its outlook for the year. Previously, the company anticipated a reduction in the .com and .net domain base ranging from 2.0% to 3.0%. It now forecasts a decrease between 2.3% and 2.9% instead.

Categories: Uncategorized Tags: earnings, nasdaq: vrsn, VeriSign

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