VeriSign's Q4 2024: Navigating Contradictions in Marketing, Domain Trends, and .com Pricing

These are the key contradictions discussed in VeriSign's latest 2024Q4 earnings call, specifically including: Marketing Programs Impact, Domain Name Base Trends, Contract Status and Regulatory Attention, and .com Pricing Dynamics:



Domain Name Base Trends:
- VeriSign's domain name base .com and .net totaled 169 million domain names at the end of 2024, a decrease of 2.1% or 3.7 million names year-over-year. During the fourth quarter, the domain name base decreased by 500,000 names.
- This decline was primarily due to decreases from both U.S. and China-based registrars, and a lesser extent, U.S. registrars prioritizing ARPU over customer acquisition.

Geographic Region Performance:
- VeriSign saw decreases in the domain name base from both U.S. and China-based registrars during Q4 and the full year 2024, while the domain name base in EMEA slightly improved.
- The decline in China volumes was in line with expectations, and VeriSign anticipates their segment to decline at a slower pace in 2025.

Marketing Program Initiatives:
- VeriSign launched new marketing programs for .com and .net to support their goal of returning to main name-based growth, in response to U.S. registrars' focus on ARPU over customer acquisition.
- These programs are designed to align with the go-to-market strategies of their registrar community, aiming to reengage them in customer acquisition efforts.

Financial Performance and Guidance:
- VeriSign generated revenue of $1.557 billion for the year ended December 31, 2024, up 4.3% year-over-year, with operating income increasing by 5.7%.
- For 2025, revenue is expected to be between $1.65 billion and $1.65 billion, with operating income expected between $1.95 billion and $1.115 billion.