VeriSign (VRSN) Q4 2024 earnings summary

Executive summary

• Achieved 4.3% year-over-year revenue growth and 5.7% increase in operating income for 2024, with Q4 revenue at $395 million and operating income at $264 million.

• Maintained over 27 years of uninterrupted .com and .net resolution, processing over 400 billion transactions daily.

• Renewed .com registry agreement with ICANN through 2030 and Cooperative Agreement with NTIA for six years, ensuring operational stability.

• Returned $1.2 billion to shareholders via repurchase of 6.6 million shares in 2024; $1 billion remains authorized for repurchase.

• Continued investment in secure, stable, and reliable internet infrastructure.

Financial highlights

• 2024 revenue: $1,560 million, up 4.3% year-over-year; operating income: $1,060 million, up 5.7%.

• Q4 2024 revenue: $395 million, up 3.9% year-over-year; Q4 operating income: $264 million, up 2.9%.

• Q4 net income: $191 million, diluted EPS $2.00; full-year net income: $786 million, diluted EPS $8.00.

• Operating cash flow for 2024: $903 million; free cash flow: $875 million.

• Cash, cash equivalents, and marketable securities at year-end: $600 million.

Outlook and guidance

• 2025 revenue guidance: $1,615–$1,635 million; operating income guidance: $1,095–$1,115 million.

• Capital expenditures expected: $30–$40 million; GAAP effective tax rate: 21%–24%.

• Interest expense and non-operating income net expected: $50–$60 million expense.

• Domain name base expected to decline by 0.3% to 2.3% in 2025, but trends are improving.

• Renewed agreements ensure operational stability through at least 2030.