VeriSign Inc. reported earnings after the markets closed.
VeriSign’s 1Q profit fell 21% from last year.
GAAP net income for the first quarter was $51.4 million or $0.28 per share, compared to $65.0 million or $0.34 per share for the year-ago quarter.
Revenue for the first quarter however rose 4% to $264.40 million from $253.56 million in the same quarter last year.
First quarter segment revenue for Internet Infrastructure and Identity Services, or the “core” businesses of Naming Services and Authentication Services, increased 4% to $263.49 million from $252.21 million a year earlier.
VeriSign added 8.1 million new domain name registrations, a record, in the first quarter.
However I’m nor sure how many following the stock picked up on VeriSign’s change of policy on March 18th in the treatment of .TV domains.
By dropping their renewal pricing on .TV domains, VeriSign added a hit to their 1Q gross numbers as domainers bought up .TV domains for the one time payments that had been up to that point renewable for a high annual fee.
This change of policy might hurt ongoing numbers in favor of an increased 1Q gross.
Moreover the question should be asked by the shareholder how many Millions did Verisign leave on the table when it decided to release all the .Tv domains on the open market as opposed to doing it by auctions?
What rescued business.tv from being sold for a fraction of the $100K auction price, by the registry on the .TV release? Only that Sedo had picked the domain for its auction prior to the release.
So what I’m saying is that had Verisign auctioned off the top 500 .tv domains instead of letting them be registered for just a few hundred to a few thousand dollars they would have added millions to their gross revenues.
Then again we still have d.tv and p.tv that the registry allowed to be hand registered for which they got $20 for.