You should read the following discussion in conjunction with the 2019 Form 10-K and the interim unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item I of this Quarterly Report on Form 10-Q. This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties, including, among other things, statements regarding our expectations about (i) the impact from the effects of the COVID-19 pandemic, (ii) the rate of growth in revenues for the remainder of 2020, (iii) cost of revenues, sales and marketing expenses, research and development expenses, general and administrative expenses, interest expense and non-operating income, net, for the remainder of 2020, (iv) the impact of new legislation and IRS guidance issued in response to the COVID-19 pandemic, and (v) our annual effective tax rate for 2020. Forward-looking statements include, among others, those statements including the words "expects," "anticipates," "intends," "believes" and similar language. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section titled "Risk Factors" in Part II, Item 1A of this Quarterly Report on Form 10-Q. You should also carefully review the risks described in other documents we file from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q or Current Reports on Form 8-K that we file in 2020 and the 2019 Form 10-K, which discuss our business in greater detail. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise, except as required by law. For purposes of this Quarterly Report on Form 10-Q, the terms "Verisign," "the Company," "we," "us," and "our" refer to VeriSign, Inc. and its consolidated subsidiaries.

Overview


We are a global provider of domain name registry services and internet
infrastructure, enabling internet navigation for many of the world's most
recognized domain names. We enable the security, stability, and resiliency of
key internet infrastructure and services, including providing root zone
maintainer services, operating two of the 13 global internet root servers, and
providing registration services and authoritative resolution for the .com and
.net top-level domains ("TLDs"), which support the majority of global
e-commerce.
As of March 31, 2020, we had 160.7 million .com and .net registrations in the
domain name base. The number of domain names registered is largely driven by
continued growth in online advertising, e-commerce, and the number of internet
users, which is partially driven by greater availability of internet access, as
well as marketing activities carried out by us and our registrars. Growth in the
number of domain name registrations under our management may be hindered by
certain factors, including overall economic conditions, competition from country
code top-level domains ("ccTLDs"), competition from, and the continued
introduction of, new generic top-level domains ("gTLDs"), and ongoing changes in
the internet practices and behaviors of consumers and businesses. Factors such
as the evolving practices and preferences of internet users, and how they
navigate the internet, as well as the motivation of domain name registrants and
how they will manage their investment in domain names, can negatively impact our
business and the demand for new domain name registrations and renewals.
Business Highlights and Trends
•         We recorded revenues of $312.5 million during the three months ended
          March 31, 2020, an increase of 2% compared to the same period in 2019.


•         We recorded operating income of $206.3 million during the three months
          ended March 31, 2020, an increase of 3% compared to the same period in
          2019.


•         As of March 31, 2020, we had 160.7 million .com and .net registrations
          in the domain name base, which represents a 4% increase from March 31,
          2019, and a net increase of 1.8 million domain name registrations from
          December 31, 2019.


•         During the three months ended March 31, 2020, we processed 10.0 million
          new domain name registrations for .com and .net compared to 9.8 million
          for the same period in 2019.


•         The final .com and .net renewal rate for the fourth quarter of 2019 was
          73.8% compared to 74.3% for the fourth quarter of 2018. Renewal rates
          are not fully measurable until 45 days after the end of the quarter.



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