Verisign Goes Rogue: New gTLD’s: “Registration Numbers on Par With .Co” & .Net is Like One

During ts earnings call today Verisign (VRSN) brushed away the new gTLD’s saying “Gross registrations for new gTLD’s are at 1.6 million which puts them on Par with .Co”

Ouch

Verisign’s Representative went further to say that no one should build a conclusion on the new gTLD program until we go through a re-billing cycle (which we happen to Agree with)

“I think what you saw in the second quarter is a lot of confusion in domains including new gTLD’s in both the singular and plural of the same .word

Fair enough

But then Verisign went down the attack the domainer path otherwise known as biting the hand that feeds you saying:

The vast majority of the new gTLD registrants are Speculators”

Who would have thought?

One Stock stock analyst that covers Verisign asked:

“Do you know the amount of domain speculators that still own .com/.net domains, I think at one point when you reported it in 2012 was around 17%”

The Verisign Representative was then asked what the percentage of .com and .net domain names where registered to domainers, or domain investors or Verisign seems to like to call us “speculators”

I thought last time you reported that number in 2012 it was like 17%.

The Verisign Rep then spent the rest of his time, some 10 Minutes distinguishing between a guy like me, a domainer, domain investor, a “speculator” from himself who may have registered some names for future use but was definitely not like me.

Yup

That Verisign guy is way different from me.

I’m the one who has spent Millions and Millions of dollars paying Verisign to keep domains I think I can sell at a profit with no promise of a positive return

Verisign Reports: 128.9 Million .Com/.Net Domains; 57.2% Profit Margin & $1.5 Billion In the Bank

VeriSign, Inc. (VRSN), the registry for .Com and .Net reported its financial results for the second quarter of 2014 after the market closed today and lets face it .com and net growth are basically stalled.

VeriSign, Inc. reported revenue of $250 million for the second quarter of 2014, up 4.6% from the same quarter in 2013.

Verisign reported net income of $100 million and diluted earnings per share (EPS) of $0.71 for the second quarter of 2014, compared to net income of $87 million and diluted EPS of $0.55 in the same quarter in 2013.

The operating margin was 57.2 percent for the second quarter of 2014 compared to 55.2 percent for the same quarter in 2013.

Second Quarter Non-GAAP Financial Results

Verisign reported, on a non-GAAP basis, net income of $96 million and diluted EPS of $0.68 for the second quarter of 2014, compared to net income of $92 million and diluted EPS of $0.58 for the same quarter in 2013.

Financial Highlights

Verisign ended the second quarter with cash, cash equivalents and marketable securities of $1.5 billion, a decrease of $178 million as compared with year-end 2013.

Cash flow from operations was $121 million for the second quarter compared with $147 million for the same quarter in 2013.

On July 23, 2014, the Board of Directors approved an additional authorization for share repurchases of approximately $491 million of common stock, which brings the total amount to $1 billion authorized and available under Verisign’s share buyback program, which has no expiration.

Business Highlights

Verisign Registry Services added 0.42 million net new names during the second quarter, ending with 128.9 million active domain names in the zone for .com and .net, which represents a 3.7 percent increase over the zone at the end of the second quarter in 2013.

In the second quarter, Verisign processed 8.5 million new domain name registrations for .com and .net as compared to 8.7 million for the same period in 2013.

The final .com and .net renewal rate for the first quarter of 2014 was 72.6 percent compared with 73.2 percent for the same quarter in 2013. Renewal rates are not fully measurable until 45 days after the end of the quarter.

Verisign announced an increase in the annual fee for a .net domain name registration from $6.18 to $6.79, effective February 1, 2015, per its agreement with the Internet Corporation for Assigned Names and Numbers (ICANN).

Verisign Downgraded By Wells Fargo: Growth Is Slowing Due To New gTLD’s & Could Get Worse

TheStreet.com is reporting that Wells Fargo analyst Gray Powell downgraded Verisign (VRSN) today writing:

VeriSign’s domain name growth appears to be falling a bit lower than the midpoint of second quarter expectations and competition from new gTLDs could be influencing overall growth to some degree.

“The company is tracking toward about 400K domain name additions in the upcoming quarter, which is lower than the 550K guidance midpoint, said the analyst, citing ICANN zone files.”

“The analyst also noted that other domain names that will possibly be more popular haven’t yet been launched.”

“He downgraded the stock to Market Perform from Outperform and lowered his price target range on the shares to $51-$55 from $56-$60.”

TheStreet.com reports that the same analyst said while Google’s (GOOG) recently announced domain program could be a good thing for VeriSign, as small businesses buy more .com and .net web domains, if Google sells higher profile domains at larger discounts or gives them away for free, it could result in more competition to VeriSign’s .com and .net domains starting late next year.

Shares of Verisign are trading down $1.65 a share just over 3% today on the news although it has bounced off the lows of the session which was $48.64

Shocking: Verisign Backed Study Shows 80% Of Small Businesses Prefer .Com over New gTLD’s

VRSN_SMB-gTLD-Study_Infographic_201406-Final

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The results of a survey of small- and medium-sized (SMB) business owners which already conduct business online, was released today by SCORE and Verisign, the registry of the .Com and .Net registries.

An inforgraphic was also published which appears above.

Unlike almost study I have read, I cannot find in any of the material how many SMB participated in the study,  how the study was conducted and what time frame the study was conducted.

According to this survey of small- and medium-sized (SMB) business owners already conducting business online:

4 out of 5 SMB website owners prefer a .com web address over a new gTLD web address.
81% of website owners believe new gTLDs will be confusing to their customers.
77% of SMB website owners prefer a .com web address over a new gTLDs that describes their business.
79% of Internet users would rather visit a .com will confuse customers.
66% of SMB website owners prefer a descriptive, longer .com web address to a shorter new gTLD address.
An overwhelming majority (94%) feel safe visiting a .com while only 33% feel comfortable visiting a new gTLD.

About SCORE
Since 1964, SCORE has helped more than 10 million aspiring entrepreneurs. Each year, SCORE provides small business mentoring, workshops and education to more than 375,000 new and growing small businesses. More than 11,000 business experts volunteer as mentors in over 320 chapters serving local communities with entrepreneur education.

Verisign Reports: Revenue up 5%; There are 128.5 Million .Com & .Nets As of March 31

Verisign logo

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VeriSign, Inc. (NASDAQ: VRSN), today reported financial results for the first quarter of 2014, reporting revenue of $249 million for the first quarter of 2014, up 5% from the same quarter in 2013.

Verisign reported net income of $94 million and diluted earnings per share (EPS) of $0.64 for the first quarter of 2014, compared to net income of $85 million and diluted EPS of $0.52 in the same quarter in 2013.

The operating margin was 56.1 percent for the first quarter of 2014 compared to 56.4 percent for the same quarter in 2013.

Verisign reported, on a non-GAAP basis, net income of $95 million and diluted EPS of $0.64 for the first quarter of 2014, compared to net income of $94 million and diluted EPS of $0.58 for the same quarter in 2013.

Shares are up $.80 after hours to back over $50 a share.

Verisign expects to complete in Q2 the intended repatriation of approximately $700M-$800M of cash held by foreign subsidiaries

Financial Highlights

Verisign ended the first quarter with cash, cash equivalents and marketable securities of $1.7 billion, flat as compared with year-end 2013.

Cash flow from operations was $142 million for the first quarter compared with $151 million for the same quarter in 2013.

Deferred revenues on March 31, 2014, totaled $886 million, an increase of $30 million from year-end 2013.

Capital expenditures were $11 million in the first quarter of 2014.

During the first quarter, Verisign repurchased 2.4 million shares of its common stock for $132 million. At March 31, 2014, $868 million remained available and authorized under the current share repurchase program.

Business Highlights

Verisign Registry Services added 1.28 million net new names during the first quarter, ending with 128.5 million active domain names in the zone for .com and .net, which represents a 4% increase over the zone at the end of the first quarter in 2013.

In the first quarter, Verisign processed 8.6 million new domain name registrations for .com and .net as compared to 8.8 million for the same period in 2013.

The final .com and .net renewal rate for the fourth quarter of 2013 was 72.2% compared with 72.9 % for the same quarter in 2012.

Renewal rates are not fully measurable until 45 days after the end of the quarter.

Verisign ended the quarter with $1.7 Billion in cash and equivalents