VeriSign, Inc. (VRSN) Q3 2024 Earnings Conference Call Transcript
VeriSign, Inc. (NASDAQ:VRSN ) Q3 2024 Earnings Conference Call October 24, 2024 4:30 PM ET Company Participants David Atchley - VP of IR and Corporate Treasurer Jim Bidzos - Executive Chairman, President and CEO George Kilguss - EVP and CFO Conference Call Participants Rob Oliver - Baird Max Moore - Citi Operator Good day, everyone. Welcome to VeriSign's Third Quarter 2024 Earnings Call.
VeriSign Q3 revenue rises on strong domain name demand
Internet services firm VeriSign reported a 3.8% rise in third-quarter revenue on Thursday, beating analyst expectations, driven by growing demand for domain name registration as businesses expand their online presence.
VeriSign Stock Vs. Gen Digital
Given its better prospects, we believe VeriSign stock (NASDAQ: VRSN), which provides domain name registry services and internet infrastructure, is a better pick than its industry peer, Gen Digital stock (NASDAQ: GEN), best known for its cyber safety products, including Norton, Avast, and AVG. Investors have assigned a higher valuation multiple of 12x revenues for VeriSign compared to 4.5x revenues for Gen Digital due to VeriSign's superior profitability and solid financial position.
VeriSign, Inc. (VRSN) Q2 2024 Earnings Call Transcript
VeriSign, Inc. (NASDAQ:VRSN ) Q2 2024 Earnings Conference Call July 25, 2024 4:30 PM ET Company Participants David Atchley - Vice President of Investor Relations & Corporate Treasurer Jim Bidzos - Executive Chairman, President & Chief Executive Officer George Kilguss - Executive Vice President & Chief Financial Officer Conference Call Participants Rob Oliver - Baird Ygal Arounian - Citigroup Operator Good day, everyone. Welcome to VeriSign's Second Quarter 2024 Earnings Call.
VeriSign: Underfollowed Value Opportunity Yielding A 9.8% Return
VeriSign stocks are undervalued by 20.1% and underfollowed by Wall Street analysts, indicating a potential mispricing. VeriSign boosts a monopolistic mature business model, with high operating margins and high free cash flow generation, compensating for modest growth. Despite recent stock price decline, VeriSign's risk-reward profile suggests a positive excess return of around 9.8%, with a catalyst expected after Q3 earnings report.
Will VeriSign Stock Recover To Its 2021 Highs Of Around $250?
VeriSign stock (NASDAQ: VRSN), a domain name provider, currently trades at $175 per share, around 30% below its peak level of $255 seen in December 2021. In comparison, its industry peer – F5 Networks stock (NASDAQ: FFIV), an application security and cloud networking company, also saw its stock decline by around 30% over the same period.
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VeriSign: Hasn't Been This Cheap Since 2018
VeriSign, a domain name registry services provider, has consistently high free cash flow margins and growing revenues for 16 years. Investor interest in VeriSign is low due to the focus on tech companies investing in AI and the perception of VeriSign's steady but not exciting revenue growth. VeriSign's competitive advantage lies in its management of globally recognized domains like .com, which grants trust and allows companies to operate in multiple markets.
Panagora Asset Management Inc. Lowers Stock Position in VeriSign, Inc. (NASDAQ:VRSN)
Panagora Asset Management Inc. cut its holdings in VeriSign, Inc. (NASDAQ:VRSN – Free Report) by 3.2% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 15,723 shares of the information services provider’s stock after selling 513 shares during the quarter. Panagora Asset Management Inc.’s holdings in VeriSign were worth $3,238,000 as of its most recent SEC filing. Other institutional investors also recently modified their holdings of the company. Orion Portfolio Solutions LLC boosted its holdings in VeriSign by 2.3% in the third quarter. Orion Portfolio Solutions LLC now owns 11,534 shares of the information services provider’s stock worth $2,336,000 after acquiring an additional 261 shares in the last quarter. New Mexico Educational Retirement Board boosted its stake in VeriSign by 6.8% in the 3rd quarter. New Mexico Educational Retirement Board now owns 4,733 shares of the information services provider’s stock worth $959,000 after purchasing an additional 300 shares in the last quarter. Daiwa Securities Group Inc. grew its position in VeriSign by 4.4% during the 3rd quarter. Daiwa Securities Group Inc. now owns 9,975 shares of the information services provider’s stock valued at $2,020,000 after purchasing an additional 419 shares during the last quarter. FDx Advisors Inc. increased its stake in VeriSign by 9.4% during the 3rd quarter. FDx Advisors Inc. now owns 3,536 shares of the information services provider’s stock valued at $716,000 after purchasing an additional 305 shares in the last quarter. Finally, Empirical Finance LLC raised its holdings in VeriSign by 9.5% in the third quarter. Empirical Finance LLC now owns 3,150 shares of the information services provider’s stock worth $638,000 after buying an additional 273 shares during the last quarter. 92.90% of the stock is currently owned by institutional investors. Wall Street Analysts Forecast Growth VRSN has been the topic of a number of recent analyst reports. Robert W. Baird cut their price target on shares of VeriSign from $215.00 to $200.00 and set a “neutral” rating on the stock in a report on Friday, April 26th. StockNews.com lowered VeriSign from a “buy” rating to a “hold” rating in a research report on Wednesday, May 15th. Finally, Citigroup cut their target price on shares of VeriSign from $237.00 to $236.00 and set a “buy” rating for the company in a research report on Tuesday, April 2nd. Get Our Latest Report on VRSN VeriSign Price Performance Shares of VeriSign stock opened at $170.75 on Monday. VeriSign, Inc. has a 1-year low of $167.04 and a 1-year high of $229.72. The company’s fifty day simple moving average is $182.33 and its 200-day simple moving average is $196.15. The stock has a market capitalization of $17.01 billion, a PE ratio of 20.98 and a beta of 0.89. VeriSign (NASDAQ:VRSN – Get Free Report) last posted its quarterly earnings data on Thursday, April 25th. The information services provider reported $1.92 earnings per share for the quarter, beating analysts’ consensus estimates of $1.86 by $0.06. The firm had revenue of $384.30 million for the quarter, compared to analysts’ expectations of $381.85 million. VeriSign had a negative return on equity of 47.21% and a net margin of 55.04%. The business’s quarterly revenue was up 5.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.70 EPS. Insider Buying and Selling at VeriSign In other VeriSign news, COO Todd B. Strubbe sold 9,423 shares of the firm’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $193.21, for a total transaction of $1,820,617.83. Following the sale, the chief operating officer now directly owns 111,551 shares of the company’s stock, valued at $21,552,768.71. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other VeriSign news, Director Yehuda Ari Buchalter sold 866 shares of VeriSign stock in a transaction that occurred on Thursday, May 9th. The stock was sold at an average price of $170.01, for a total value of $147,228.66. Following the sale, the director now owns 3,661 shares of the company’s stock, valued at approximately $622,406.61. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, COO Todd B. Strubbe sold 9,423 shares of the company’s stock in a transaction on Tuesday, February 20th. The shares were sold at an average price of $193.21, for a total transaction of $1,820,617.83. Following the sale, the chief operating officer now directly owns 111,551 shares in the company, valued at approximately $21,552,768.71. The disclosure for this sale can be found here. Insiders have sold 14,393 shares of company stock valued at $2,759,633 over the last 90 days. 0.84% of the stock is currently owned by corporate insiders. VeriSign Profile (Free Report) VeriSign, Inc, together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce.
