Here are 1-3 brief analogies for VeriSign (VRSN):

• VeriSign is like the Visa or Mastercard for internet addresses, acting as the essential, behind-the-scenes processor for .com and .net websites.
• VeriSign is like the NYSE or Nasdaq for domain names, serving as the central, authoritative registry for .com and .net internet addresses.
• VeriSign is like American Tower for digital real estate, owning and managing the core infrastructure (.com and .net domain space) upon which much of the internet is built.

• Domain Name Registry Services: VeriSign operates the authoritative registry for several top-level domains (TLDs), most notably .com and .net, processing all domain name registrations and renewals globally.
• DNS Resolution Services: VeriSign provides critical infrastructure services to ensure the accurate and reliable resolution of domain names into IP addresses for internet users worldwide.
• DNS Security Services: VeriSign offers security services, including Distributed Denial of Service (DDoS) Protection, to safeguard its own and its customers' DNS infrastructure against cyber threats.

VeriSign (VRSN) sells primarily to other companies, specifically domain name registrars, who then sell domain names to end-users and businesses. VeriSign operates the authoritative registry for several top-level domains (TLDs), including .com and .net, and collects fees from registrars for each domain registered or renewed.

While VeriSign's customer base consists of thousands of ICANN-accredited registrars globally, and VeriSign typically states in its filings that no single registrar accounts for more than 10% of its revenue, the following public companies are among the largest domain registrars and therefore represent significant customers for VeriSign's registry services:

• GoDaddy Inc. (NASDAQ: GDDY)
• Squarespace, Inc. (NYSE: SQSP) - particularly after acquiring Google Domains' assets in 2023.
• Amazon.com, Inc. (NASDAQ: AMZN) - through its AWS Route 53 domain registration service.
• Cloudflare, Inc. (NYSE: NET) - which also offers domain registration services.

Additionally, for specialized TLDs like .gov and .edu, VeriSign's customers are directly government agencies and educational institutions, respectively.

null

D. James Bidzos, Chairman of the Board of Directors, Executive Chairman, President and Chief Executive Officer

D. James Bidzos is the founder of VeriSign, launching the company in 1995 to develop digital certificate infrastructure for internet commerce. He is an internet and security industry pioneer who built RSA Security, an information security company, into an early standard-bearer for authentication and encryption. Bidzos served as president and CEO of RSA Data Security from 1986 to February 1999, and then as RSA's vice chairman from 1999 to May 2002. He also co-founded RSA Laboratories in 1989 and created the RSA Conference in 1991.

John Calys, Executive Vice President and Chief Financial Officer

John Calys is responsible for all of VeriSign's financial functions, including accounting, audit, treasury, corporate finance, tax, and investor relations. He has over 35 years of extensive experience in financial management and business leadership. Calys joined VeriSign in December 2010 and has held key leadership roles, including serving as Interim Chief Financial Officer during 2011 and 2012, and as Chief Accounting Officer. Prior to VeriSign, he served as Vice President and Controller for XO Communications, Inc., Vice President and Assistant Treasurer for Sprint Nextel Corporation, and Vice President and Assistant Controller for Nextel Communications, Inc.

Danny McPherson, Executive Vice President, Technology and Chief Security Officer

Danny McPherson leads VeriSign's technology and security organizations, overseeing corporate and production infrastructure, platforms, services, engineering, operations, and information and corporate security. He has over 20 years of experience in the internet network operations, security, and telecommunications industries. Before joining VeriSign in 2010, McPherson served as Chief Scientific Officer and Vice President at Arbor Networks, where he developed solutions to detect and mitigate cyberattacks. His background also includes technical leadership positions in architecture, engineering, and operations with Amber Networks, Qwest Communications, Genuity, MCI Communications, and the U.S. Army Signal Corps. He has actively participated in internet operations, research, and standardization since the early 1990s, including multiple terms on the Internet Architecture Board (IAB).

Burt Kaliski Jr., Senior Vice President and Chief Technology Officer

Dr. Burt Kaliski Jr. serves as VeriSign's Chief Technology Officer and Senior Vice President.

Thomas Indelicarto, Executive Vice President, General Counsel and Secretary

Thomas Indelicarto serves as Executive Vice President, General Counsel and Secretary at VeriSign.

The emergence and growing adoption of decentralized naming systems, such as blockchain-based domains like the Ethereum Name Service (ENS) and Unstoppable Domains. These systems offer alternative, non-ICANN-controlled methods for online identity and resource resolution that operate outside the traditional DNS infrastructure managed by VeriSign. If these decentralized identifiers gain significant mainstream adoption, they could reduce the demand for traditional domain names and diminish VeriSign's central role in internet naming by providing a parallel, competing ecosystem for online identity.

VeriSign, Inc. (VRSN) operates as a global provider of domain name registry services and internet infrastructure. Its main products and services include operating the authoritative registries for the .com and .net top-level domains (TLDs), as well as providing related internet infrastructure services such as DNS services and DDoS protection services.

The addressable markets for VeriSign's main products and services are:

• Domain Name Registry Services (Global): VeriSign operates at the registry level within the broader domain name market. The global domain name registrar market, which encompasses the registration and management of domain names, was valued at approximately USD 10.3 billion in 2023 and is expected to reach around USD 20.4 billion by 2033, growing at a compound annual growth rate (CAGR) of 7.1% from 2025 to 2033. VeriSign's revenue is derived from fees charged to registrars for .com and .net domain name registrations and renewals. As of late 2024, VeriSign managed approximately 172.7 million domain names across .com and .net.
• DNS Services (Global): The global Domain Name System (DNS) Service market was valued at USD 5,970 million in 2024 and is expected to reach USD 27,143 million by 2033, at a CAGR of 16.35% during the forecast period 2024–2033. Another report estimated the global DNS services market size at USD 424.6 million in 2022, projected to grow to USD 1,698.0 million by 2030.
• DDoS Protection and Mitigation Services (Global): The global DDoS Protection and Mitigation Market was valued at approximately USD 3.5 billion in 2023 and is projected to grow at a CAGR of 14% from 2024 to 2030, reaching an estimated market value of USD 8.76 billion by 2030. Other estimates place the global market size at USD 4.68 billion in 2024, projected to reach USD 20.31 billion by 2033.

Expected drivers of future revenue growth for VeriSign (VRSN) over the next 2-3 years include:

1. Growth in .com and .net Domain Name Registrations: VeriSign's core business relies on the expansion of its domain name base. The company's guidance for 2025 anticipates a domain name base growth of 2.2% to 2.5%. Recent performance shows a 1.4% year-over-year increase in the .com and .net domain name base for Q3 2025, with new registrations demonstrating significant strength. This sustained growth in registrations directly translates to increased revenue.
2. Improved Renewal Rates for .com and .net Domains: High domain name renewal rates are a crucial component of VeriSign's recurring revenue model. The preliminary renewal rate for Q3 2025 was 75.3%, an improvement from 72.2% in Q3 2024. The expected renewal rate for Q2 2025 was also robust at 75.5%, up from 72.7% in the prior year. Continued efforts to maintain and improve these rates will positively impact future revenue.
3. Strategic Price Increases: VeriSign periodically implements price adjustments for its domain name services. For example, the annual registry-level wholesale fee for .com domain names increased from $8.97 to $9.59, effective September 1, 2023. These contractual price increases on its vast domain base are a consistent and predictable driver of revenue growth.
4. Enhanced Registrar Marketing Programs and Engagement: VeriSign has been focusing on revamped marketing programs and strengthening engagement with registrars, particularly in the U.S. and EMEA regions. Management has attributed recent improvements in new domain registrations and renewal rates to the success of these initiatives, with expectations of fuller engagement in these programs by 2025.
5. Participation in New gTLD Rounds and AI-driven Demand: VeriSign is strategically preparing for ICANN's new gTLD (generic Top-Level Domain) round scheduled for Q2 2026, which presents opportunities for future growth through new domain extensions. Additionally, the company has observed that artificial intelligence (AI) is having a positive impact on domain registrations and the utilization of its DNS resolution services, suggesting a potential new avenue for growth.

Share Repurchases

• VeriSign's Board of Directors authorized an additional $1.11 billion for share repurchases on July 25, 2024, increasing the total authorized amount under its ongoing program to $1.5 billion.
• During the second quarter of 2024, VeriSign repurchased 2.2 million shares of its common stock for an aggregate cost of $388 million.
• In the full year 2021, the company repurchased 3.3 million shares for $700 million, following $170 million in repurchases (0.8 million shares) in Q4 2020.

Share Issuance

• VeriSign's stock-based compensation, which often leads to share issuance, was $157 million for the twelve months ending June 30, 2025.
• Annual stock-based compensation was $61 million in 2024, $60 million in 2023, and $59 million in 2022.
• The company reported common stock issuance of $12.3 million in 2023 and 2022, and $12.4 million in 2021.

Outbound Investments

• VeriSign has not reported any significant outbound investments, such as acquisitions or strategic equity stakes in other companies, within the last 3-5 years.

Capital Expenditures

• Capital expenditures were -$28.7 million for the trailing twelve months ending June 30, 2025.
• Annual capital expenditures were -$28.1 million in 2024, -$45.8 million in 2023, and -$27.4 million in 2022.
• Projections suggest capital expenditures of $47 million for 2025 and $50 million for 2026.