VERISIGN INC/CA — Call Transcript 2026

Good day, everyone. Welcome to VeriSign's Q1 2026 earnings call. Today's conference is being recorded. Recording of this call is not permitted unless pre-authorized. At this time, I'd like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir. Thank you, operator. Welcome to VeriSign's Q1 2026 earnings call. Joining me are Jim Bidzos, Executive Chairman, President, and CEO, and John Calys, Executive Vice President and CFO. This call and presentation are being webcast from the investor relations website, which is available under About VeriSign on verisign.com. There you will also find our earnings release. At the end of this call, the presentation will be available on that site, and within a few hours, the replay of the call will be posted. Financial results in our earnings release are unaudited, and our remarks include forward-looking statements that are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q. VeriSign does not update financial performance or guidance during the quarter unless it is done through a public disclosure. The financial results in today's call and the matters we will be discussing today include GAAP results and two non-GAAP measures used by VeriSign, adjusted EBITDA and free cash flow. GAAP to non-GAAP reconciliation information is appended to the slide presentation, which can be found on the investor relations section of our website, available after this call. Jim and John will provide some prepared remarks, and afterward, we will open the call for your questions. With that, I would like to turn the call over to Jim. Thank you, David. Good afternoon to everyone, and thank you for joining us. We're pleased to report that VeriSign delivered strong results in the Q1 of 2026, both operationally and financially. The combined .com and .net domain name base is now at a record 176.1 million names. New registrations are the largest we have seen since the H1 of 2021, combined with very strong renewal rates. On a financial side, revenue is up 6.6% year-over-year, and EPS increased 11.4% year-over-year. After seeing to the needs of our operations, we returned over 100% of our free cash flow to the investing public in the last 12 months for a total of $1.13 billion through share repurchases and dividends. Our financial and liquidity position remains stable with $556 million in cash equivalents, and marketable securities at the end of the quarter. At quarter end, there was $863 million remaining available under our current share repurchase program, which has no expiration. As announced in today's earnings release, VeriSign's board of directors approved a cash dividend of $0.81 per share of VeriSign's outstanding common stock to stockholders of record as of the close of business on May 19th, 2026, payable on May 27th, 2026. VeriSign intends to continue to pay a cash dividend on a quarterly basis, subject to market conditions and approval by VeriSign's board of directors. VeriSign's performance in the Q1 shows sustained demand for domain names. During the quarter, the domain name base for .com and .net grew 2.54 million from year-end 2025. New registrations for the Q1 were 11.5 million, compared with 10.7 million last quarter and 10.1 million for the Q1 of last year. The renewal rate for the Q1 of 2026 is expected to be 76.3%, compared to 75.5% a year ago. The positive domain name base trends of 2025 have continued to build strength to start 2026. We saw growth across our three main regions, with most of the strength coming from the U.S. and EMEA. It is clear to us that end users are seeing value in domain names and the domain name system as evidenced by our strong domain name metrics and the increasing reliance on our infrastructure. We see ongoing registrar focus on customer acquisition and engagement with our marketing programs. Also, we see a positive impact from AI tools, which make content and website creation faster and easier. With the trends we've observed thus far in 2026 and our expectations for the next three quarters, we are increasing and narrowing our guidance for domain name base growth to be between 3.1% and 4.3% for 2026. As a reminder, you can monitor the progression of the domain name base on our website, which is updated daily. As announced in today's earnings release, we have given notice of a price increase of $0.71 to the annual wholesale price for .com domain names, which raises the wholesale price from $10.26 to $10.97, effective November 1st, 2026. Even after this increase, we believe .com will remain highly competitive with other TLD choices. I would note that this is the first allowable price increase since the notice two years ago in February 2024 of a $0.67 increase. As a reminder, VeriSign is prohibited from selling .com registrations to retail buyers. We may only sell to accredited registrars and only at a capped regulated price. The new $10.97 price that will become effective November 1st is the maximum price that we can charge registrars. The registrars, however, are entirely price unrestricted and can sell .com registrations at any retail price they choose, and those prices often differ significantly from the price we are limited to. Now I'd like to turn the call over to John. I will return when John has completed his financial report with closing remarks. John? Thank you, Jim, and good afternoon, everyone. For the quarter ended March 31st, 2026, the company generated revenue of $429 million, up 6.6% from the same quarter a year ago. Operating expense in Q1 2026 totaled $135 million, which compared to $140 million last quarter and $131 million for the Q1 a year ago. As noted last quarter, Q4 2025 results included an impairment charge. Operating income totaled $294 million, up $22 million or 8.3% from the previous year. Operating income was up $9 million or 3.1% on a sequential quarter basis. Net income for the Q1 totaled $215 million, compared to $206 million last quarter and $199 million for the same quarter a year ago. This resulted in diluted earnings per share of $2.34 for the Q1 this year, compared to $2.23 last quarter and $2.10 for the Q1 of last year, representing increases of 4.9% and 11.4% respectively. Operating cash flow for the Q1 of 2026 was $272 million. Free cash flow was $265 million, compared with $291 million and $286 million respectively in the year-ago quarter. I will now discuss our updated full year guidance for 2026. Revenue is now expected to be between $1.730 billion and $1.745 billion. Operating income is now expected to be between $1.170 billion and $1.185 billion. Interest expense and non-operating income net, which includes interest income estimates, is still expected to be an expense of between $57 million and $67 million. Capital expenditures are still expected to be between $55 million and $65 million, which includes some modest structural improvement projects at our HQ facility. The GAAP effective tax rate is still expected to be between 22% and 25%. I will now turn the call back to Jim for his closing remarks. Thank you, John. As I said, we're pleased to have delivered another solid quarter of operational and financial performance. We extended our record of 100% service availability. We saw strength in all metrics, new registrations, renewal rates, and solid financial performance, including paying our fourth quarterly dividend and additional share repurchases to return over 100% of our free cash flow to the investing public. We've seen broad participation in our marketing programs, which are now better tailored to our diverse and evolving channel. In short, we focused on what we can control and influence. We also benefited from some tailwinds that include AI, which as I said, has made it easier to find a good domain name, build a website, and get online. However, as we said many times before, it's the delivery of our services, which is our primary mission, that is VeriSign's priority. In addition to .com/.net DNS, our services include the DNS Root Zone publication and the operation of two of the 13 global internet root servers. Our employees are dedicated to support that mission, and the vast majority of them are highly skilled technical specialists directly engaged in the design, development, operation, maintenance, support, and protection of our unique purpose-built, high assurance, critical infrastructure. As we approach 29 years of uninterrupted availability for the .com/.net DNS resolution service we provide, I'd like to point out why we think of our services as high assurance. The unparalleled record of 100% availability spanning four decades is certainly one important aspect. Performance and accuracy are equally important for many reasons, including for security. Our authoritative DNS answers are cryptographically protected and over 95% are processed in milliseconds globally for the 600 billion transactions per day on average, that we see across our infrastructure. That's 7 million transactions per second every second of every day on average. Given the ever-increasing reliance on a global internet, we believe high assurance, as we define it, will become increasingly important. In the coming weeks, we'll share a series of blogs about how we view the future of high assurance infrastructure, the role it will play in enhancing online trust, and introduce enhanced security components. Thanks for your attention today. This concludes our prepared remarks, and now we'll open the call for your questions. Operator, we're ready for the first question. If you're using a speakerphone, please make sure your mute function is turned off to allow the signal to reach our equipment. Once your question has been stated, please mute your line. We'll take our first question from Rob Oliver with Baird. Great. Thank you. Good afternoon. Jim, first question, and I had a couple of questions. First one from me is around, clearly the marketing programs that you guys announced that you intended to pursue, I think it was back in Q1 of 2024, are really starting to gain traction. You also called out tailwinds from AI, and so wondering the extent to which you could help us understand as you look at the strength in domains, which I think you said we haven't seen now in many years. What sort of the contributing factor balances are there? Is it more AI? Is it more things you could control, marketing? How should we think about the mix of those contributions? That's a good question, Rob. I guess the way we see it's difficult to really separate the two. The reason is that, I think they sort of collide in a good way with each other and sort of blend together. The registrars, because of the tailwind from AI, essentially makes it easier for the registrars to service folks who can quickly find a domain name, get online, and build a website. That gets easier. I believe that engagement with our programs, which we know for a fact is a significant contributor. To what extent is difficult because that demand and our program sort of collide. We put together programs that were responsive to what we heard from the channel. The channel is evolving and diversifying constantly, and, as I've said before, we put together programs that were responsive to their diverse needs, and they're absolutely engaging with them. There's greater drive from the tailwind, engaging more carefully tailored programs. To try to sort of separate those is really difficult. I wish I could give you a better answer, but they're both good news. Okay, great. No, that's helpful color. Thanks, Jim. Second question for me is around your comment about that you've been pleased, I can't remember your exact language, about renewal rates and what you've seen. I just wanted to double down on that a little bit. We're, I think, around the kind of two-year anniversary of when you guys called out these marketing programs. I assume it's a little early to know if it was a two-year cohort, but I just specifically would love to hear from you what you're hearing about the renewal cohorts around kind of post those marketing changes and how those are holding up relative to your kind of typical renewal rates on new domains. Yeah. Good question. John's been looking into that. John? Yeah. Certainly, our renewal rate at 76.3% was very strong. Our programs, as we've talked about in the past, do have elements of design to hopefully incentivize our customers, our registrars, to sell and promote names, to their customers that have a better renewal rate characteristic. We do expect continued good, solid renewal rates through 2026. As we mentioned, I think last quarter, the strength of new registrations in the H2 of 2025 will present a little bit of a challenge this year because we'll have a higher proportion of first-time renewing names through the H2 of 2026. I think overall, our first-time renewals are still averaging in the mid-40% range. Our previously renewed names are in the mid-80% range, but have showed some improvement over the last year. I think we're pleased with what our programs have delivered there and are seeing some improvement. Okay. Thanks. Thanks, John. I appreciate all that detail. Then I guess last one for me, and then I'll hand it over to others. Jim, I don't know the extent to which you will comment, but I just wanted to ask about the upcoming round of ICANN TLD programs that is going to be coming up. I think the process may be kicking off even here in April or imminently. Just any color you can provide on how we should be thinking about how you're thinking about that potential opportunity around the new TLD program. Thank you. Sure. Yes, ICANN is opening another round of applications for new gTLDs. The last one was in 2012. You're right, this one opens up at the end of this month, for submission of applications. ICANN's opening a window for a new round. We expect it to be a long process. The new generic TLDs that come out of this process are likely not launched until 2028, as there are a lot of steps ICANN goes through after the application window. There's also a potential in this new round of applications with multiple applicants for the same TLD. In this case, ICANN will run an auction process to sort out the winners of different contention sets. There's a lot of process to go on. We get asked a lot about VeriSign's participation, and we're taking the necessary technical steps to be ready should we choose to be an applicant at this round. As a reminder, in the last round, the 2012 round, we obtained several new gTLDs, some of which we haven't yet launched. Also .web, which we're continuing to pursue, was from the 2012 round. We're still evaluating our participation in this current round, the 2026 round, with the window of application slated to open on the 30th of this month and not close until August 12th. We'll update you as appropriate as we get closer to the end of the application close in August. Okay. That's great. Thanks, Jim. Thanks, John. I appreciate all the color. Sure. Thanks a lot. We'll move to our next question from Jamesmichael Sherman-Lewis with Citi. Good afternoon. Thank you for taking my questions. First off, with the upcoming .com price hike, what are your expectations for the price elasticity or renewal trends for these newer domains following the hike? I understand wholesale domain prices are fairly nominal relative to the end customer cost, but any color there would be very helpful. How are you thinking about .net pricing? Yeah. Jamesmichael, this is John. If I understood your question, you're asking us what our expectations are around renewals post price increase. If I've got that right, it's very dependent on what our retail registrars do pricing-wise. If they do take price increases, that could have an effect on either new registrations or renewals. We've seen a little bit of that in the past. We're still pretty confident In the trends that we're seeing in renewals at this point in time. We'll see what happens come, I guess, November 1st and thereafter. I guess I would just add, the new price, the $10.97 per year price for a .com works out to about $0.03 a day. I think for most registrants who are engaged in online activities, it's a relatively modest amount. Makes sense. Any thoughts on .net pricing? Well, we have available 10% annual price increases on .net. We don't guide to pricing, of course. We do take a lot of factors into consideration when we decide how to price the TLDs. I can tell you a couple of things. Number one is we have not, at this point today, announced a price increase for .net. We consider it to be a well-known, competitively priced TLD, and we invest in marketing programs for .net. If we announce a price increase, we'll certainly give notice, but we have not at this point. Got it. Thank you very much. A follow-up question here on your infrastructure build-out. In context of the over 600 billion transactions per day that VeriSign sees, AI agents and LLMs scraping the web at an accelerated rate, is your current infrastructure sufficient to handle this expanding internet? Were there incremental investments you might need to ensure that 100% uptime? Thank you. Sure. There are many qualitative and quantitative improvements that we are constantly making and adjusting to our network. I think the best answer I can give you to your question is that we have multiple orders of magnitude in excess capacity as one component of our resiliency planning and execution. Great. Thank you. Sure. We will take our last question from Alexei Gogolev with JPMorgan. Hello, everyone. Jim, I appreciate the commentary at the very end of your prepared remarks about the new services. Can you maybe provide a bit more color what those new services will solve for your customers, maybe some additional insights on security, stability mission that you're looking to achieve there? Sure. Maybe I can say a few more things about sort of the foundational reasons that I alluded to concerning additional security services in high-assurance infrastructure like ours. Putting aside AI for a moment, which is, of course, a significant major development. Well, maybe not quite putting it aside, simply making the observation that with Anthropic's Mythos, we've seen that AI is capable of revealing vulnerabilities in various systems. Security is continuing to be important. In the many years that I ran the RSAC Conference, my observation in every keynote was that the security situation provided more job security for the audience than any industry I could think of. Here we are, 35 years since that conference began, and it certainly turned out to be true. I think high-assurance infrastructure becomes important for a lot of reasons. AI is not only beneficial for all the reasons that it is, but it reveals vulnerabilities. Just the increased reliance and use of the internet, it's just such a deep part of all of our lives, so many different infrastructures now relying on it, we think high assurance will be important. I mentioned the components. The components I talked about are our own 100% availability record, 100%, not 5 nines, now for 28 going on 29 years. That's one. Also our performance, that we can deliver accurate cryptographically protected answers to queries in milliseconds anywhere in the world at a rate of 600 billion per day on average and have multiple orders of magnitude capacity beyond it. The accuracy part is important, and the performance part is important because these are windows of vulnerability. The delays in answering queries related to secure navigation are important. We believe that there are additional security tools that would be synergistic with the type of high-assurance infrastructure that we have. I've alluded to services that we've been examining. They do need to fit certain requirements. They need to fit well into our infrastructure, and work well within our channel. Nothing significantly changes in offering them other than they benefit from the properties of our infrastructure, and we think that some of them are worth considering in offering as a service. As I said, we'll have a series of blogs that roll this out starting as soon as next month. You'll have more information then, but I think that's probably what I'm comfortable saying right now. Okay, perfect. Thank you, Jim, and I appreciate all the comments that you made around your own marketing activities. Can you comment on how registrar promotional intensity in Q1, for example, for GoDaddy, your biggest customer, or for other registrars, how it compared with Q4 and how you think about promo-driven volume versus sustainable underlying demand? There's a lot of different ways that question could be answered. I'll give you one way, and invite John, if he has another, to add to it. I mentioned the evolving and diverse nature of our channel. This is all true. Some website builders have turned into registrars. Some have been acquired, some have merged, some have a different focus. All of them have different models. That's the evolving part that led us to take a careful look at our programs and make sure that we offered those that actually worked for them. These different models bring about issues like different lead times to prepare marketing campaigns as we learned and adapted, it was driven more by what the diverse needs were and the need to find something that could work for a larger group rather than just one size fits all. We're also bound by some restrictions in how we market. We have to be careful to treat registrars equally fairly. That's also a factor in that design. It's really a function of by the way, our channel for .com and .net, I believe VeriSign's channel, we have sort of the broadest reach, I think, because of the popularity of .com and .net TLDs. We service a very, very large number of registrars. We thought that was maybe the path that would lead to the most productive results in the short term, is just simply addressing the needs of a very large and diverse and evolving channel. We concentrated on listening to them, learning what they're doing, engage with them, return, assess, adapt, revise, and present, and we get engagement. It's less driven by what we think this program will do rather than what they really need to go out and market our products, which are really great, reliable, trusted products. Makes sense. Thank you very much, Jim. That concludes today's question and answer session. I'll turn the conference back to David Atchley for final comments. Thank you, operator. Please call the investor relations department with any follow-up questions from this call. Thank you for your participation. This concludes our call. Have a good evening. Okay.

Speaker 6: Good day, everyone. Welcome to VeriSign's Q1 2026 earnings call. Today's conference is being recorded. Recording of this call is not permitted unless pre-authorized. At this time, I'd like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir. Good day, everyone. good day everyone Welcome to VeriSign's Q1 2026 earnings call. welcome to verisign's q1 2026 earnings call Today's conference is being recorded. today's conference is being recorded Recording of this call is not permitted unless pre-authorized. recording of this call is not permitted unless pre-authorized At this time, I'd like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. at this time i'd like to turn the conference over to mr david atchley vice president of investor relations and corporate treasurer Please go ahead, sir. please go ahead sir

Speaker 2: Thank you, operator. Welcome to VeriSign's Q1 2026 earnings call. Joining me are Jim Bidzos, Executive Chairman, President, and CEO, and John Calys, Executive Vice President and CFO. This call and presentation are being webcast from the investor relations website, which is available under About VeriSign on verisign.com. There you will also find our earnings release. At the end of this call, the presentation will be available on that site, and within a few hours, the replay of the call will be posted. Financial results in our earnings release are unaudited, and our remarks include forward-looking statements that are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q. VeriSign does not update financial performance or guidance during the quarter unless it is done through a public disclosure. Thank you, operator. thank you operator Welcome to VeriSign's Q1 2026 earnings call. welcome to verisign's q1 2026 earnings call Joining me are Jim Bidzos, Executive Chairman, President, and CEO, and John Calys, Executive Vice President and CFO. joining me are jim bidzos executive chairman president and ceo and john calys executive vice president and cfo This call and presentation are being webcast from the investor relations website, which is available under About VeriSign on verisign.com. this call and presentation are being webcast from the investor relations website which is available under about verisign on verisign.com There you will also find our earnings release. there you will also find our earnings release At the end of this call, the presentation will be available on that site, and within a few hours, the replay of the call will be posted. at the end of this call the presentation will be available on that site and within a few hours the replay of the call will be posted Financial results in our earnings release are unaudited, and our remarks include forward-looking statements that are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q. financial results in our earnings release are unaudited and our remarks include forward-looking statements that are subject to the risks and uncertainties that we discuss in detail in our documents filed with the sec specifically the most recent reports on form 10-k and 10-q VeriSign does not update financial performance or guidance during the quarter unless it is done through a public disclosure. verisign does not update financial performance or guidance during the quarter unless it is done through a public disclosure The financial results in today's call and the matters we will be discussing today include GAAP results and two non-GAAP measures used by VeriSign, adjusted EBITDA and free cash flow. GAAP to non-GAAP reconciliation information is appended to the slide presentation, which can be found on the investor relations section of our website, available after this call. Jim and John will provide some prepared remarks, and afterward, we will open the call for your questions. With that, I would like to turn the call over to Jim. The financial results in today's call and the matters we will be discussing today include GAAP results and two non-GAAP measures used by VeriSign, adjusted EBITDA and free cash flow. the financial results in today's call and the matters we will be discussing today include gaap results and two non-gaap measures used by verisign adjusted ebitda and free cash flow GAAP to non-GAAP reconciliation information is appended to the slide presentation, which can be found on the investor relations section of our website, available after this call. gaap to non-gaap reconciliation information is appended to the slide presentation which can be found on the investor relations section of our website available after this call Jim and John will provide some prepared remarks, and afterward, we will open the call for your questions. jim and john will provide some prepared remarks and afterward we will open the call for your questions With that, I would like to turn the call over to Jim. with that i would like to turn the call over to jim

Speaker 4: Thank you, David. Good afternoon to everyone, and thank you for joining us. We're pleased to report that VeriSign delivered strong results in the Q1 of 2026, both operationally and financially. The combined .com and .net domain name base is now at a record 176.1 million names. New registrations are the largest we have seen since the H1 of 2021, combined with very strong renewal rates. On a financial side, revenue is up 6.6% year-over-year, and EPS increased 11.4% year-over-year. After seeing to the needs of our operations, we returned over 100% of our free cash flow to the investing public in the last 12 months for a total of $1.13 billion through share repurchases and dividends. Our financial and liquidity position remains stable with $556 million in cash equivalents, and marketable securities at the end of the quarter. Thank you, David. thank you david Good afternoon to everyone, and thank you for joining us. good afternoon to everyone and thank you for joining us We're pleased to report that VeriSign delivered strong results in the Q1 of 2026, both operationally and financially. we're pleased to report that verisign delivered strong results in the q1 of 2026 both operationally and financially The combined .com and .net domain name base is now at a record 176.1 million names. the combined .com and .net domain name base is now at a record 176.1 million names New registrations are the largest we have seen since the H1 of 2021, combined with very strong renewal rates. new registrations are the largest we have seen since the h1 of 2021 combined with very strong renewal rates On a financial side, revenue is up 6.6% year-over-year, and EPS increased 11.4% year-over-year. on a financial side revenue is up 6.6% year-over-year and eps increased 11.4% year-over-year After seeing to the needs of our operations, we returned over 100% of our free cash flow to the investing public in the last 12 months for a total of $1.13 billion through share repurchases and dividends. after seeing to the needs of our operations we returned over 100% of our free cash flow to the investing public in the last 12 months for a total of $1.13 billion through share repurchases and dividends Our financial and liquidity position remains stable with $556 million in cash equivalents, and marketable securities at the end of the quarter. our financial and liquidity position remains stable with $556 million in cash equivalents and marketable securities at the end of the quarter At quarter end, there was $863 million remaining available under our current share repurchase program, which has no expiration. As announced in today's earnings release, VeriSign's board of directors approved a cash dividend of $0.81 per share of VeriSign's outstanding common stock to stockholders of record as of the close of business on May 19th, 2026, payable on May 27th, 2026. VeriSign intends to continue to pay a cash dividend on a quarterly basis, subject to market conditions and approval by VeriSign's board of directors. VeriSign's performance in the Q1 shows sustained demand for domain names. During the quarter, the domain name base for .com and .net grew 2.54 million from year-end 2025. New registrations for the Q1 were 11.5 million, compared with 10.7 million last quarter and 10.1 million for the Q1 of last year. At quarter end, there was $863 million remaining available under our current share repurchase program, which has no expiration. at quarter end there was $863 million remaining available under our current share repurchase program which has no expiration As announced in today's earnings release, VeriSign's board of directors approved a cash dividend of $0.81 per share of VeriSign's outstanding common stock to stockholders of record as of the close of business on May 19th, 2026, payable on May 27th, 2026. as announced in today's earnings release verisign's board of directors approved a cash dividend of $0.81 per share of verisign's outstanding common stock to stockholders of record as of the close of business on may 19th 2026 payable on may 27th 2026 VeriSign intends to continue to pay a cash dividend on a quarterly basis, subject to market conditions and approval by VeriSign's board of directors. verisign intends to continue to pay a cash dividend on a quarterly basis subject to market conditions and approval by verisign's board of directors VeriSign's performance in the Q1 shows sustained demand for domain names. verisign's performance in the q1 shows sustained demand for domain names During the quarter, the domain name base for .com and .net grew 2.54 million from year-end 2025. during the quarter the domain name base for .com and .net grew 2.54 million from year-end 2025 New registrations for the Q1 were 11.5 million, compared with 10.7 million last quarter and 10.1 million for the Q1 of last year. new registrations for the q1 were 11.5 million compared with 10.7 million last quarter and 10.1 million for the q1 of last year The renewal rate for the Q1 of 2026 is expected to be 76.3%, compared to 75.5% a year ago. The positive domain name base trends of 2025 have continued to build strength to start 2026. We saw growth across our three main regions, with most of the strength coming from the U.S. and EMEA. It is clear to us that end users are seeing value in domain names and the domain name system as evidenced by our strong domain name metrics and the increasing reliance on our infrastructure. We see ongoing registrar focus on customer acquisition and engagement with our marketing programs. Also, we see a positive impact from AI tools, which make content and website creation faster and easier. The renewal rate for the Q1 of 2026 is expected to be 76.3%, compared to 75.5% a year ago. the renewal rate for the q1 of 2026 is expected to be 76.3% compared to 75.5% a year ago The positive domain name base trends of 2025 have continued to build strength to start 2026. the positive domain name base trends of 2025 have continued to build strength to start 2026 We saw growth across our three main regions, with most of the strength coming from the U.S. and EMEA. we saw growth across our three main regions with most of the strength coming from the u.s and emea It is clear to us that end users are seeing value in domain names and the domain name system as evidenced by our strong domain name metrics and the increasing reliance on our infrastructure. it is clear to us that end users are seeing value in domain names and the domain name system as evidenced by our strong domain name metrics and the increasing reliance on our infrastructure We see ongoing registrar focus on customer acquisition and engagement with our marketing programs. we see ongoing registrar focus on customer acquisition and engagement with our marketing programs Also, we see a positive impact from AI tools, which make content and website creation faster and easier. also we see a positive impact from ai tools which make content and website creation faster and easier With the trends we've observed thus far in 2026 and our expectations for the next three quarters, we are increasing and narrowing our guidance for domain name base growth to be between 3.1% and 4.3% for 2026. As a reminder, you can monitor the progression of the domain name base on our website, which is updated daily. As announced in today's earnings release, we have given notice of a price increase of $0.71 to the annual wholesale price for .com domain names, which raises the wholesale price from $10.26 to $10.97, effective November 1st, 2026. Even after this increase, we believe .com will remain highly competitive with other TLD choices. I would note that this is the first allowable price increase since the notice two years ago in February 2024 of a $0.67 increase. As a reminder, VeriSign is prohibited from selling .com registrations to retail buyers. With the trends we've observed thus far in 2026 and our expectations for the next three quarters, we are increasing and narrowing our guidance for domain name base growth to be between 3.1% and 4.3% for 2026. with the trends we've observed thus far in 2026 and our expectations for the next three quarters we are increasing and narrowing our guidance for domain name base growth to be between 3.1% and 4.3% for 2026 As a reminder, you can monitor the progression of the domain name base on our website, which is updated daily. as a reminder you can monitor the progression of the domain name base on our website which is updated daily As announced in today's earnings release, we have given notice of a price increase of $0.71 to the annual wholesale price for .com domain names, which raises the wholesale price from $10.26 to $10.97, effective November 1st, 2026. as announced in today's earnings release we have given notice of a price increase of $0.71 to the annual wholesale price for .com domain names which raises the wholesale price from $10.26 to $10.97 effective november 1st 2026 Even after this increase, we believe .com will remain highly competitive with other TLD choices. even after this increase we believe .com will remain highly competitive with other tld choices I would note that this is the first allowable price increase since the notice two years ago in February 2024 of a $0.67 increase. i would note that this is the first allowable price increase since the notice two years ago in february 2024 of a $0.67 increase As a reminder, VeriSign is prohibited from selling .com registrations to retail buyers. as a reminder verisign is prohibited from selling .com registrations to retail buyers We may only sell to accredited registrars and only at a capped regulated price. The new $10.97 price that will become effective November 1st is the maximum price that we can charge registrars. The registrars, however, are entirely price unrestricted and can sell .com registrations at any retail price they choose, and those prices often differ significantly from the price we are limited to. Now I'd like to turn the call over to John. I will return when John has completed his financial report with closing remarks. John? We may only sell to accredited registrars and only at a capped regulated price. we may only sell to accredited registrars and only at a capped regulated price The new $10.97 price that will become effective November 1st is the maximum price that we can charge registrars. the new $10.97 price that will become effective november 1st is the maximum price that we can charge registrars The registrars, however, are entirely price unrestricted and can sell .com registrations at any retail price they choose, and those prices often differ significantly from the price we are limited to. the registrars however are entirely price unrestricted and can sell .com registrations at any retail price they choose and those prices often differ significantly from the price we are limited to Now I'd like to turn the call over to John. now i'd like to turn the call over to john I will return when John has completed his financial report with closing remarks. i will return when john has completed his financial report with closing remarks John? john

Speaker 5: Thank you, Jim, and good afternoon, everyone. For the quarter ended March 31st, 2026, the company generated revenue of $429 million, up 6.6% from the same quarter a year ago. Thank you, Jim, and good afternoon, everyone. thank you jim and good afternoon everyone For the quarter ended March 31st, 2026, the company generated revenue of $429 million, up 6.6% from the same quarter a year ago. for the quarter ended march 31st 2026 the company generated revenue of $429 million up 6.6% from the same quarter a year ago Operating expense in Q1 2026 totaled $135 million, which compared to $140 million last quarter and $131 million for the Q1 a year ago. As noted last quarter, Q4 2025 results included an impairment charge. Operating income totaled $294 million, up $22 million or 8.3% from the previous year. Operating income was up $9 million or 3.1% on a sequential quarter basis. Net income for the Q1 totaled $215 million, compared to $206 million last quarter and $199 million for the same quarter a year ago. This resulted in diluted earnings per share of $2.34 for the Q1 this year, compared to $2.23 last quarter and $2.10 for the Q1 of last year, representing increases of 4.9% and 11.4% respectively. Operating cash flow for the Q1 of 2026 was $272 million. Operating expense in Q1 2026 totaled $135 million, which compared to $140 million last quarter and $131 million for the Q1 a year ago. operating expense in q1 2026 totaled $135 million which compared to $140 million last quarter and $131 million for the q1 a year ago As noted last quarter, Q4 2025 results included an impairment charge. as noted last quarter q4 2025 results included an impairment charge Operating income totaled $294 million, up $22 million or 8.3% from the previous year. operating income totaled $294 million up $22 million or 8.3% from the previous year Operating income was up $9 million or 3.1% on a sequential quarter basis. operating income was up $9 million or 3.1% on a sequential quarter basis Net income for the Q1 totaled $215 million, compared to $206 million last quarter and $199 million for the same quarter a year ago. net income for the q1 totaled $215 million compared to $206 million last quarter and $199 million for the same quarter a year ago This resulted in diluted earnings per share of $2.34 for the Q1 this year, compared to $2.23 last quarter and $2.10 for the Q1 of last year, representing increases of 4.9% and 11.4% respectively. this resulted in diluted earnings per share of $2.34 for the q1 this year compared to $2.23 last quarter and $2.10 for the q1 of last year representing increases of 4.9% and 11.4% respectively Operating cash flow for the Q1 of 2026 was $272 million. operating cash flow for the q1 of 2026 was $272 million Free cash flow was $265 million, compared with $291 million and $286 million respectively in the year-ago quarter. I will now discuss our updated full year guidance for 2026. Revenue is now expected to be between $1.730 billion and $1.745 billion. Operating income is now expected to be between $1.170 billion and $1.185 billion. Interest expense and non-operating income net, which includes interest income estimates, is still expected to be an expense of between $57 million and $67 million. Capital expenditures are still expected to be between $55 million and $65 million, which includes some modest structural improvement projects at our HQ facility. The GAAP effective tax rate is still expected to be between 22% and 25%. I will now turn the call back to Jim for his closing remarks. Free cash flow was $265 million, compared with $291 million and $286 million respectively in the year-ago quarter. free cash flow was $265 million compared with $291 million and $286 million respectively in the year-ago quarter I will now discuss our updated full year guidance for 2026. i will now discuss our updated full year guidance for 2026 Revenue is now expected to be between $1.730 billion and $1.745 billion. revenue is now expected to be between $1.730 billion and $1.745 billion Operating income is now expected to be between $1.170 billion and $1.185 billion. operating income is now expected to be between $1.170 billion and $1.185 billion Interest expense and non-operating income net, which includes interest income estimates, is still expected to be an expense of between $57 million and $67 million. interest expense and non-operating income net which includes interest income estimates is still expected to be an expense of between $57 million and $67 million Capital expenditures are still expected to be between $55 million and $65 million, which includes some modest structural improvement projects at our HQ facility. capital expenditures are still expected to be between $55 million and $65 million which includes some modest structural improvement projects at our hq facility The GAAP effective tax rate is still expected to be between 22% and 25%. the gaap effective tax rate is still expected to be between 22% and 25% I will now turn the call back to Jim for his closing remarks. i will now turn the call back to jim for his closing remarks

Speaker 4: Thank you, John. As I said, we're pleased to have delivered another solid quarter of operational and financial performance. We extended our record of 100% service availability. We saw strength in all metrics, new registrations, renewal rates, and solid financial performance, including paying our fourth quarterly dividend and additional share repurchases to return over 100% of our free cash flow to the investing public. We've seen broad participation in our marketing programs, which are now better tailored to our diverse and evolving channel. In short, we focused on what we can control and influence. We also benefited from some tailwinds that include AI, which as I said, has made it easier to find a good domain name, build a website, and get online. However, as we said many times before, it's the delivery of our services, which is our primary mission, that is VeriSign's priority. Thank you, John. thank you john As I said, we're pleased to have delivered another solid quarter of operational and financial performance. as i said we're pleased to have delivered another solid quarter of operational and financial performance We extended our record of 100% service availability. we extended our record of 100% service availability We saw strength in all metrics, new registrations, renewal rates, and solid financial performance, including paying our fourth quarterly dividend and additional share repurchases to return over 100% of our free cash flow to the investing public. we saw strength in all metrics new registrations renewal rates and solid financial performance including paying our fourth quarterly dividend and additional share repurchases to return over 100% of our free cash flow to the investing public We've seen broad participation in our marketing programs, which are now better tailored to our diverse and evolving channel. we've seen broad participation in our marketing programs which are now better tailored to our diverse and evolving channel In short, we focused on what we can control and influence. in short we focused on what we can control and influence We also benefited from some tailwinds that include AI, which as I said, has made it easier to find a good domain name, build a website, and get online. we also benefited from some tailwinds that include ai which as i said has made it easier to find a good domain name build a website and get online However, as we said many times before, it's the delivery of our services, which is our primary mission, that is VeriSign's priority. however as we said many times before it's the delivery of our services which is our primary mission that is verisign's priority In addition to .com/.net DNS, our services include the DNS Root Zone publication and the operation of two of the 13 global internet root servers. Our employees are dedicated to support that mission, and the vast majority of them are highly skilled technical specialists directly engaged in the design, development, operation, maintenance, support, and protection of our unique purpose-built, high assurance, critical infrastructure. As we approach 29 years of uninterrupted availability for the .com/.net DNS resolution service we provide, I'd like to point out why we think of our services as high assurance. The unparalleled record of 100% availability spanning four decades is certainly one important aspect. Performance and accuracy are equally important for many reasons, including for security. Our authoritative DNS answers are cryptographically protected and over 95% are processed in milliseconds globally for the 600 billion transactions per day on average, that we see across our infrastructure. In addition to .com/.net DNS, our services include the DNS Root Zone publication and the operation of two of the 13 global internet root servers. in addition to .com/.net dns our services include the dns root zone publication and the operation of two of the 13 global internet root servers Our employees are dedicated to support that mission, and the vast majority of them are highly skilled technical specialists directly engaged in the design, development, operation, maintenance, support, and protection of our unique purpose-built, high assurance, critical infrastructure. our employees are dedicated to support that mission and the vast majority of them are highly skilled technical specialists directly engaged in the design development operation maintenance support and protection of our unique purpose-built high assurance critical infrastructure As we approach 29 years of uninterrupted availability for the .com/.net DNS resolution service we provide, I'd like to point out why we think of our services as high assurance. as we approach 29 years of uninterrupted availability for the .com/.net dns resolution service we provide i'd like to point out why we think of our services as high assurance The unparalleled record of 100% availability spanning four decades is certainly one important aspect. the unparalleled record of 100% availability spanning four decades is certainly one important aspect Performance and accuracy are equally important for many reasons, including for security. performance and accuracy are equally important for many reasons including for security Our authoritative DNS answers are cryptographically protected and over 95% are processed in milliseconds globally for the 600 billion transactions per day on average, that we see across our infrastructure. our authoritative dns answers are cryptographically protected and over 95% are processed in milliseconds globally for the 600 billion transactions per day on average that we see across our infrastructure That's 7 million transactions per second every second of every day on average. Given the ever-increasing reliance on a global internet, we believe high assurance, as we define it, will become increasingly important. In the coming weeks, we'll share a series of blogs about how we view the future of high assurance infrastructure, the role it will play in enhancing online trust, and introduce enhanced security components. Thanks for your attention today. This concludes our prepared remarks, and now we'll open the call for your questions. Operator, we're ready for the first question. That's 7 million transactions per second every second of every day on average. that's 7 million transactions per second every second of every day on average Given the ever-increasing reliance on a global internet, we believe high assurance, as we define it, will become increasingly important. given the ever-increasing reliance on a global internet we believe high assurance as we define it will become increasingly important In the coming weeks, we'll share a series of blogs about how we view the future of high assurance infrastructure, the role it will play in enhancing online trust, and introduce enhanced security components. in the coming weeks we'll share a series of blogs about how we view the future of high assurance infrastructure the role it will play in enhancing online trust and introduce enhanced security components Thanks for your attention today. thanks for your attention today This concludes our prepared remarks, and now we'll open the call for your questions. this concludes our prepared remarks and now we'll open the call for your questions Operator, we're ready for the first question. operator we're ready for the first question

Speaker 6: If you're using a speakerphone, please make sure your mute function is turned off to allow the signal to reach our equipment. Once your question has been stated, please mute your line. We'll take our first question from Rob Oliver with Baird. If you're using a speakerphone, please make sure your mute function is turned off to allow the signal to reach our equipment. if you're using a speakerphone please make sure your mute function is turned off to allow the signal to reach our equipment Once your question has been stated, please mute your line. once your question has been stated please mute your line We'll take our first question from Rob Oliver with Baird. we'll take our first question from rob oliver with baird

Speaker 7: Great. Thank you. Good afternoon. Jim, first question, and I had a couple of questions. First one from me is around, clearly the marketing programs that you guys announced that you intended to pursue, I think it was back in Q1 of 2024, are really starting to gain traction. You also called out tailwinds from AI, and so wondering the extent to which you could help us understand as you look at the strength in domains, which I think you said we haven't seen now in many years. What sort of the contributing factor balances are there? Is it more AI? Is it more things you could control, marketing? How should we think about the mix of those contributions? Great. great Thank you. thank you Good afternoon. good afternoon Jim, first question, and I had a couple of questions. jim first question and i had a couple of questions First one from me is around, clearly the marketing programs that you guys announced that you intended to pursue, I think it was back in Q1 of 2024, are really starting to gain traction. first one from me is around clearly the marketing programs that you guys announced that you intended to pursue i think it was back in q1 of 2024 are really starting to gain traction You also called out tailwinds from AI, and so wondering the extent to which you could help us understand as you look at the strength in domains, which I think you said we haven't seen now in many years. you also called out tailwinds from ai and so wondering the extent to which you could help us understand as you look at the strength in domains which i think you said we haven't seen now in many years What sort of the contributing factor balances are there? what sort of the contributing factor balances are there Is it more AI? is it more ai Is it more things you could control, marketing? is it more things you could control marketing How should we think about the mix of those contributions? how should we think about the mix of those contributions

Speaker 4: That's a good question, Rob. I guess the way we see it's difficult to really separate the two. The reason is that, I think they sort of collide in a good way with each other and sort of blend together. The registrars, because of the tailwind from AI, essentially makes it easier for the registrars to service folks who can quickly find a domain name, get online, and build a website. That gets easier. I believe that engagement with our programs, which we know for a fact is a significant contributor. To what extent is difficult because that demand and our program sort of collide. We put together programs that were responsive to what we heard from the channel. The channel is evolving and diversifying constantly, and, as I've said before, we put together programs that were responsive to their diverse needs, and they're absolutely engaging with them. That's a good question, Rob. that's a good question rob I guess the way we see it's difficult to really separate the two. i guess the way we see it's difficult to really separate the two The reason is that, I think they sort of collide in a good way with each other and sort of blend together. the reason is that i think they sort of collide in a good way with each other and sort of blend together The registrars, because of the tailwind from AI, essentially makes it easier for the registrars to service folks who can quickly find a domain name, get online, and build a website. the registrars because of the tailwind from ai essentially makes it easier for the registrars to service folks who can quickly find a domain name get online and build a website That gets easier. that gets easier I believe that engagement with our programs, which we know for a fact is a significant contributor. i believe that engagement with our programs which we know for a fact is a significant contributor To what extent is difficult because that demand and our program sort of collide. to what extent is difficult because that demand and our program sort of collide We put together programs that were responsive to what we heard from the channel. we put together programs that were responsive to what we heard from the channel The channel is evolving and diversifying constantly, and, as I've said before, we put together programs that were responsive to their diverse needs, and they're absolutely engaging with them. the channel is evolving and diversifying constantly and as i've said before we put together programs that were responsive to their diverse needs and they're absolutely engaging with them There's greater drive from the tailwind, engaging more carefully tailored programs. To try to sort of separate those is really difficult. I wish I could give you a better answer, but they're both good news. There's greater drive from the tailwind, engaging more carefully tailored programs. there's greater drive from the tailwind engaging more carefully tailored programs To try to sort of separate those is really difficult. to try to sort of separate those is really difficult I wish I could give you a better answer, but they're both good news. i wish i could give you a better answer but they're both good news

Speaker 7: Okay, great. No, that's helpful color. Thanks, Jim. Second question for me is around your comment about that you've been pleased, I can't remember your exact language, about renewal rates and what you've seen. I just wanted to double down on that a little bit. We're, I think, around the kind of two-year anniversary of when you guys called out these marketing programs. I assume it's a little early to know if it was a two-year cohort, but I just specifically would love to hear from you what you're hearing about the renewal cohorts around kind of post those marketing changes and how those are holding up relative to your kind of typical renewal rates on new domains. Okay, great. okay great No, that's helpful color. no that's helpful color Thanks, Jim. thanks jim Second question for me is around your comment about that you've been pleased, I can't remember your exact language, about renewal rates and what you've seen. second question for me is around your comment about that you've been pleased i can't remember your exact language about renewal rates and what you've seen I just wanted to double down on that a little bit. i just wanted to double down on that a little bit We're, I think, around the kind of two-year anniversary of when you guys called out these marketing programs. we're i think around the kind of two-year anniversary of when you guys called out these marketing programs I assume it's a little early to know if it was a two-year cohort, but I just specifically would love to hear from you what you're hearing about the renewal cohorts around kind of post those marketing changes and how those are holding up relative to your kind of typical renewal rates on new domains. i assume it's a little early to know if it was a two-year cohort but i just specifically would love to hear from you what you're hearing about the renewal cohorts around kind of post those marketing changes and how those are holding up relative to your kind of typical renewal rates on new domains

Speaker 4: Yeah. Good question. John's been looking into that. John? Yeah. yeah Good question. good question John's been looking into that. john's been looking into that John? john

Speaker 5: Yeah. Certainly, our renewal rate at 76.3% was very strong. Our programs, as we've talked about in the past, do have elements of design to hopefully incentivize our customers, our registrars, to sell and promote names, to their customers that have a better renewal rate characteristic. We do expect continued good, solid renewal rates through 2026. As we mentioned, I think last quarter, the strength of new registrations in the H2 of 2025 will present a little bit of a challenge this year because we'll have a higher proportion of first-time renewing names through the H2 of 2026. I think overall, our first-time renewals are still averaging in the mid-40% range. Our previously renewed names are in the mid-80% range, but have showed some improvement over the last year. Yeah. yeah Certainly, our renewal rate at 76.3% was very strong. certainly our renewal rate at 76.3% was very strong Our programs, as we've talked about in the past, do have elements of design to hopefully incentivize our customers, our registrars, to sell and promote names, to their customers that have a better renewal rate characteristic. our programs as we've talked about in the past do have elements of design to hopefully incentivize our customers our registrars to sell and promote names to their customers that have a better renewal rate characteristic We do expect continued good, solid renewal rates through 2026. we do expect continued good solid renewal rates through 2026 As we mentioned, I think last quarter, the strength of new registrations in the H2 of 2025 will present a little bit of a challenge this year because we'll have a higher proportion of first-time renewing names through the H2 of 2026. as we mentioned i think last quarter the strength of new registrations in the h2 of 2025 will present a little bit of a challenge this year because we'll have a higher proportion of first-time renewing names through the h2 of 2026 I think overall, our first-time renewals are still averaging in the mid-40% range. i think overall our first-time renewals are still averaging in the mid-40% range Our previously renewed names are in the mid-80% range, but have showed some improvement over the last year. our previously renewed names are in the mid-80% range but have showed some improvement over the last year I think we're pleased with what our programs have delivered there and are seeing some improvement. I think we're pleased with what our programs have delivered there and are seeing some improvement. i think we're pleased with what our programs have delivered there and are seeing some improvement

Speaker 7: Okay. Thanks. Thanks, John. I appreciate all that detail. Then I guess last one for me, and then I'll hand it over to others. Jim, I don't know the extent to which you will comment, but I just wanted to ask about the upcoming round of ICANN TLD programs that is going to be coming up. I think the process may be kicking off even here in April or imminently. Just any color you can provide on how we should be thinking about how you're thinking about that potential opportunity around the new TLD program. Thank you. Okay. okay Thanks. thanks Thanks, John. thanks john I appreciate all that detail. i appreciate all that detail Then I guess last one for me, and then I'll hand it over to others. then i guess last one for me and then i'll hand it over to others Jim, I don't know the extent to which you will comment, but I just wanted to ask about the upcoming round of ICANN TLD programs that is going to be coming up. jim i don't know the extent to which you will comment but i just wanted to ask about the upcoming round of icann tld programs that is going to be coming up I think the process may be kicking off even here in April or imminently. i think the process may be kicking off even here in april or imminently Just any color you can provide on how we should be thinking about how you're thinking about that potential opportunity around the new TLD program. just any color you can provide on how we should be thinking about how you're thinking about that potential opportunity around the new tld program Thank you. thank you

Speaker 4: Sure. Yes, ICANN is opening another round of applications for new gTLDs. The last one was in 2012. You're right, this one opens up at the end of this month, for submission of applications. ICANN's opening a window for a new round. We expect it to be a long process. The new generic TLDs that come out of this process are likely not launched until 2028, as there are a lot of steps ICANN goes through after the application window. There's also a potential in this new round of applications with multiple applicants for the same TLD. In this case, ICANN will run an auction process to sort out the winners of different contention sets. There's a lot of process to go on. Sure. sure Yes, ICANN is opening another round of applications for new gTLDs. yes icann is opening another round of applications for new gtlds The last one was in 2012. the last one was in 2012 You're right, this one opens up at the end of this month, for submission of applications. you're right this one opens up at the end of this month for submission of applications ICANN's opening a window for a new round. icann's opening a window for a new round We expect it to be a long process. we expect it to be a long process The new generic TLDs that come out of this process are likely not launched until 2028, as there are a lot of steps ICANN goes through after the application window. the new generic tlds that come out of this process are likely not launched until 2028 as there are a lot of steps icann goes through after the application window There's also a potential in this new round of applications with multiple applicants for the same TLD. there's also a potential in this new round of applications with multiple applicants for the same tld In this case, ICANN will run an auction process to sort out the winners of different contention sets. in this case icann will run an auction process to sort out the winners of different contention sets There's a lot of process to go on. there's a lot of process to go on We get asked a lot about VeriSign's participation, and we're taking the necessary technical steps to be ready should we choose to be an applicant at this round. As a reminder, in the last round, the 2012 round, we obtained several new gTLDs, some of which we haven't yet launched. Also .web, which we're continuing to pursue, was from the 2012 round. We're still evaluating our participation in this current round, the 2026 round, with the window of application slated to open on the 30th of this month and not close until August 12th. We'll update you as appropriate as we get closer to the end of the application close in August. We get asked a lot about VeriSign's participation, and we're taking the necessary technical steps to be ready should we choose to be an applicant at this round. we get asked a lot about verisign's participation and we're taking the necessary technical steps to be ready should we choose to be an applicant at this round As a reminder, in the last round, the 2012 round, we obtained several new gTLDs, some of which we haven't yet launched. as a reminder in the last round the 2012 round we obtained several new gtlds some of which we haven't yet launched Also .web, which we're continuing to pursue, was from the 2012 round. also .web which we're continuing to pursue was from the 2012 round We're still evaluating our participation in this current round, the 2026 round, with the window of application slated to open on the 30th of this month and not close until August 12th. we're still evaluating our participation in this current round the 2026 round with the window of application slated to open on the 30th of this month and not close until august 12th We'll update you as appropriate as we get closer to the end of the application close in August. we'll update you as appropriate as we get closer to the end of the application close in august

Speaker 7: Okay. That's great. Thanks, Jim. Thanks, John. I appreciate all the color. Okay. okay That's great. that's great Thanks, Jim. thanks jim Thanks, John. thanks john I appreciate all the color. i appreciate all the color

Speaker 4: Sure. Sure. sure

Speaker 7: Thanks a lot. Thanks a lot. thanks a lot

Speaker 6: We'll move to our next question from Jamesmichael Sherman-Lewis with Citi. We'll move to our next question from Jamesmichael Sherman-Lewis with Citi. we'll move to our next question from jamesmichael sherman-lewis with citi

Speaker 3: Good afternoon. Thank you for taking my questions. First off, with the upcoming .com price hike, what are your expectations for the price elasticity or renewal trends for these newer domains following the hike? I understand wholesale domain prices are fairly nominal relative to the end customer cost, but any color there would be very helpful. How are you thinking about .net pricing? Good afternoon. good afternoon Thank you for taking my questions. thank you for taking my questions First off, with the upcoming .com price hike, what are your expectations for the price elasticity or renewal trends for these newer domains following the hike? first off with the upcoming .com price hike what are your expectations for the price elasticity or renewal trends for these newer domains following the hike I understand wholesale domain prices are fairly nominal relative to the end customer cost, but any color there would be very helpful. i understand wholesale domain prices are fairly nominal relative to the end customer cost but any color there would be very helpful How are you thinking about .net pricing? how are you thinking about .net pricing

Speaker 5: Yeah. Jamesmichael, this is John. If I understood your question, you're asking us what our expectations are around renewals post price increase. If I've got that right, it's very dependent on what our retail registrars do pricing-wise. If they do take price increases, that could have an effect on either new registrations or renewals. We've seen a little bit of that in the past. We're still pretty confident Yeah. yeah Jamesmichael, this is John. jamesmichael this is john If I understood your question, you're asking us what our expectations are around renewals post price increase. if i understood your question you're asking us what our expectations are around renewals post price increase If I've got that right, it's very dependent on what our retail registrars do pricing-wise. if i've got that right it's very dependent on what our retail registrars do pricing-wise If they do take price increases, that could have an effect on either new registrations or renewals. if they do take price increases that could have an effect on either new registrations or renewals We've seen a little bit of that in the past. we've seen a little bit of that in the past We're still pretty confident we're still pretty confident In the trends that we're seeing in renewals at this point in time. We'll see what happens come, I guess, November 1st and thereafter. In the trends that we're seeing in renewals at this point in time. in the trends that we're seeing in renewals at this point in time We'll see what happens come, I guess, November 1st and thereafter. we'll see what happens come i guess november 1st and thereafter

Speaker 4: I guess I would just add, the new price, the $10.97 per year price for a .com works out to about $0.03 a day. I think for most registrants who are engaged in online activities, it's a relatively modest amount. I guess I would just add, the new price, the $10.97 per year price for a .com works out to about $0.03 a day. i guess i would just add the new price the $10.97 per year price for a .com works out to about $0.03 a day I think for most registrants who are engaged in online activities, it's a relatively modest amount. i think for most registrants who are engaged in online activities it's a relatively modest amount

Speaker 3: Makes sense. Any thoughts on .net pricing? Makes sense. makes sense Any thoughts on .net pricing? any thoughts on .net pricing

Speaker 4: Well, we have available 10% annual price increases on .net. We don't guide to pricing, of course. We do take a lot of factors into consideration when we decide how to price the TLDs. I can tell you a couple of things. Number one is we have not, at this point today, announced a price increase for .net. We consider it to be a well-known, competitively priced TLD, and we invest in marketing programs for .net. If we announce a price increase, we'll certainly give notice, but we have not at this point. Well, we have available 10% annual price increases on .net. well we have available 10% annual price increases on .net We don't guide to pricing, of course. we don't guide to pricing of course We do take a lot of factors into consideration when we decide how to price the TLDs. we do take a lot of factors into consideration when we decide how to price the tlds I can tell you a couple of things. i can tell you a couple of things Number one is we have not, at this point today, announced a price increase for .net. number one is we have not at this point today announced a price increase for .net We consider it to be a well-known, competitively priced TLD, and we invest in marketing programs for .net. we consider it to be a well-known competitively priced tld and we invest in marketing programs for .net If we announce a price increase, we'll certainly give notice, but we have not at this point. if we announce a price increase we'll certainly give notice but we have not at this point

Speaker 3: Got it. Thank you very much. A follow-up question here on your infrastructure build-out. In context of the over 600 billion transactions per day that VeriSign sees, AI agents and LLMs scraping the web at an accelerated rate, is your current infrastructure sufficient to handle this expanding internet? Were there incremental investments you might need to ensure that 100% uptime? Thank you. Got it. got it Thank you very much. thank you very much A follow-up question here on your infrastructure build-out. a follow-up question here on your infrastructure build-out In context of the over 600 billion transactions per day that VeriSign sees, AI agents and LLMs scraping the web at an accelerated rate, is your current infrastructure sufficient to handle this expanding internet? in context of the over 600 billion transactions per day that verisign sees ai agents and llms scraping the web at an accelerated rate is your current infrastructure sufficient to handle this expanding internet Were there incremental investments you might need to ensure that 100% uptime? were there incremental investments you might need to ensure that 100% uptime Thank you. thank you

Speaker 4: Sure. There are many qualitative and quantitative improvements that we are constantly making and adjusting to our network. I think the best answer I can give you to your question is that we have multiple orders of magnitude in excess capacity as one component of our resiliency planning and execution. Sure. sure There are many qualitative and quantitative improvements that we are constantly making and adjusting to our network. there are many qualitative and quantitative improvements that we are constantly making and adjusting to our network I think the best answer I can give you to your question is that we have multiple orders of magnitude in excess capacity as one component of our resiliency planning and execution. i think the best answer i can give you to your question is that we have multiple orders of magnitude in excess capacity as one component of our resiliency planning and execution

Speaker 3: Great. Thank you. Great. great Thank you. thank you

Speaker 4: Sure. Sure. sure

Speaker 6: We will take our last question from Alexei Gogolev with JPMorgan. We will take our last question from Alexei Gogolev with JPMorgan. we will take our last question from alexei gogolev with jpmorgan

Speaker 1: Hello, everyone. Jim, I appreciate the commentary at the very end of your prepared remarks about the new services. Can you maybe provide a bit more color what those new services will solve for your customers, maybe some additional insights on security, stability mission that you're looking to achieve there? Hello, everyone. hello everyone Jim, I appreciate the commentary at the very end of your prepared remarks about the new services. jim i appreciate the commentary at the very end of your prepared remarks about the new services Can you maybe provide a bit more color what those new services will solve for your customers, maybe some additional insights on security, stability mission that you're looking to achieve there? can you maybe provide a bit more color what those new services will solve for your customers maybe some additional insights on security stability mission that you're looking to achieve there

Speaker 4: Sure. Maybe I can say a few more things about sort of the foundational reasons that I alluded to concerning additional security services in high-assurance infrastructure like ours. Putting aside AI for a moment, which is, of course, a significant major development. Well, maybe not quite putting it aside, simply making the observation that with Anthropic's Mythos, we've seen that AI is capable of revealing vulnerabilities in various systems. Security is continuing to be important. In the many years that I ran the RSAC Conference, my observation in every keynote was that the security situation provided more job security for the audience than any industry I could think of. Here we are, 35 years since that conference began, and it certainly turned out to be true. I think high-assurance infrastructure becomes important for a lot of reasons. Sure. sure Maybe I can say a few more things about sort of the foundational reasons that I alluded to concerning additional security services in high-assurance infrastructure like ours. maybe i can say a few more things about sort of the foundational reasons that i alluded to concerning additional security services in high-assurance infrastructure like ours Putting aside AI for a moment, which is, of course, a significant major development. putting aside ai for a moment which is of course a significant major development Well, maybe not quite putting it aside, simply making the observation that with Anthropic's Mythos, we've seen that AI is capable of revealing vulnerabilities in various systems. well maybe not quite putting it aside simply making the observation that with anthropic's mythos we've seen that ai is capable of revealing vulnerabilities in various systems Security is continuing to be important. security is continuing to be important In the many years that I ran the RSAC Conference, my observation in every keynote was that the security situation provided more job security for the audience than any industry I could think of. in the many years that i ran the rsac conference my observation in every keynote was that the security situation provided more job security for the audience than any industry i could think of Here we are, 35 years since that conference began, and it certainly turned out to be true. here we are 35 years since that conference began and it certainly turned out to be true I think high-assurance infrastructure becomes important for a lot of reasons. i think high-assurance infrastructure becomes important for a lot of reasons AI is not only beneficial for all the reasons that it is, but it reveals vulnerabilities. Just the increased reliance and use of the internet, it's just such a deep part of all of our lives, so many different infrastructures now relying on it, we think high assurance will be important. I mentioned the components. The components I talked about are our own 100% availability record, 100%, not 5 nines, now for 28 going on 29 years. That's one. Also our performance, that we can deliver accurate cryptographically protected answers to queries in milliseconds anywhere in the world at a rate of 600 billion per day on average and have multiple orders of magnitude capacity beyond it. The accuracy part is important, and the performance part is important because these are windows of vulnerability. The delays in answering queries related to secure navigation are important. AI is not only beneficial for all the reasons that it is, but it reveals vulnerabilities. ai is not only beneficial for all the reasons that it is but it reveals vulnerabilities Just the increased reliance and use of the internet, it's just such a deep part of all of our lives, so many different infrastructures now relying on it, we think high assurance will be important. just the increased reliance and use of the internet it's just such a deep part of all of our lives so many different infrastructures now relying on it we think high assurance will be important I mentioned the components. i mentioned the components The components I talked about are our own 100% availability record, 100%, not 5 nines, now for 28 going on 29 years. the components i talked about are our own 100% availability record 100% not 5 nines now for 28 going on 29 years That's one. that's one Also our performance, that we can deliver accurate cryptographically protected answers to queries in milliseconds anywhere in the world at a rate of 600 billion per day on average and have multiple orders of magnitude capacity beyond it. also our performance that we can deliver accurate cryptographically protected answers to queries in milliseconds anywhere in the world at a rate of 600 billion per day on average and have multiple orders of magnitude capacity beyond it The accuracy part is important, and the performance part is important because these are windows of vulnerability. the accuracy part is important and the performance part is important because these are windows of vulnerability The delays in answering queries related to secure navigation are important. the delays in answering queries related to secure navigation are important We believe that there are additional security tools that would be synergistic with the type of high-assurance infrastructure that we have. I've alluded to services that we've been examining. They do need to fit certain requirements. They need to fit well into our infrastructure, and work well within our channel. Nothing significantly changes in offering them other than they benefit from the properties of our infrastructure, and we think that some of them are worth considering in offering as a service. As I said, we'll have a series of blogs that roll this out starting as soon as next month. You'll have more information then, but I think that's probably what I'm comfortable saying right now. We believe that there are additional security tools that would be synergistic with the type of high-assurance infrastructure that we have. we believe that there are additional security tools that would be synergistic with the type of high-assurance infrastructure that we have I've alluded to services that we've been examining. i've alluded to services that we've been examining They do need to fit certain requirements. they do need to fit certain requirements They need to fit well into our infrastructure, and work well within our channel. they need to fit well into our infrastructure and work well within our channel Nothing significantly changes in offering them other than they benefit from the properties of our infrastructure, and we think that some of them are worth considering in offering as a service. nothing significantly changes in offering them other than they benefit from the properties of our infrastructure and we think that some of them are worth considering in offering as a service As I said, we'll have a series of blogs that roll this out starting as soon as next month. as i said we'll have a series of blogs that roll this out starting as soon as next month You'll have more information then, but I think that's probably what I'm comfortable saying right now. you'll have more information then but i think that's probably what i'm comfortable saying right now

Speaker 1: Okay, perfect. Thank you, Jim, and I appreciate all the comments that you made around your own marketing activities. Can you comment on how registrar promotional intensity in Q1, for example, for GoDaddy, your biggest customer, or for other registrars, how it compared with Q4 and how you think about promo-driven volume versus sustainable underlying demand? Okay, perfect. okay perfect Thank you, Jim, and I appreciate all the comments that you made around your own marketing activities. thank you jim and i appreciate all the comments that you made around your own marketing activities Can you comment on how registrar promotional intensity in Q1, for example, for GoDaddy, your biggest customer, or for other registrars, how it compared with Q4 and how you think about promo-driven volume versus sustainable underlying demand? can you comment on how registrar promotional intensity in q1 for example for godaddy your biggest customer or for other registrars how it compared with q4 and how you think about promo-driven volume versus sustainable underlying demand

Speaker 4: There's a lot of different ways that question could be answered. I'll give you one way, and invite John, if he has another, to add to it. I mentioned the evolving and diverse nature of our channel. This is all true. Some website builders have turned into registrars. Some have been acquired, some have merged, some have a different focus. All of them have different models. That's the evolving part that led us to take a careful look at our programs and make sure that we offered those that actually worked for them. These different models bring about issues like different lead times to prepare marketing campaigns as we learned and adapted, it was driven more by what the diverse needs were and the need to find something that could work for a larger group rather than just one size fits all. There's a lot of different ways that question could be answered. there's a lot of different ways that question could be answered I'll give you one way, and invite John, if he has another, to add to it. i'll give you one way and invite john if he has another to add to it I mentioned the evolving and diverse nature of our channel. i mentioned the evolving and diverse nature of our channel This is all true. this is all true Some website builders have turned into registrars. some website builders have turned into registrars Some have been acquired, some have merged, some have a different focus. some have been acquired some have merged some have a different focus All of them have different models. all of them have different models That's the evolving part that led us to take a careful look at our programs and make sure that we offered those that actually worked for them. that's the evolving part that led us to take a careful look at our programs and make sure that we offered those that actually worked for them These different models bring about issues like different lead times to prepare marketing campaigns as we learned and adapted, it was driven more by what the diverse needs were and the need to find something that could work for a larger group rather than just one size fits all. these different models bring about issues like different lead times to prepare marketing campaigns as we learned and adapted it was driven more by what the diverse needs were and the need to find something that could work for a larger group rather than just one size fits all We're also bound by some restrictions in how we market. We have to be careful to treat registrars equally fairly. That's also a factor in that design. It's really a function of by the way, our channel for .com and .net, I believe VeriSign's channel, we have sort of the broadest reach, I think, because of the popularity of .com and .net TLDs. We service a very, very large number of registrars. We thought that was maybe the path that would lead to the most productive results in the short term, is just simply addressing the needs of a very large and diverse and evolving channel. We concentrated on listening to them, learning what they're doing, engage with them, return, assess, adapt, revise, and present, and we get engagement. We're also bound by some restrictions in how we market. we're also bound by some restrictions in how we market We have to be careful to treat registrars equally fairly. we have to be careful to treat registrars equally fairly That's also a factor in that design. that's also a factor in that design It's really a function of by the way, our channel for .com and .net, I believe VeriSign's channel, we have sort of the broadest reach, I think, because of the popularity of .com and .net TLDs. it's really a function of by the way our channel for .com and .net i believe verisign's channel we have sort of the broadest reach i think because of the popularity of .com and .net tlds We service a very, very large number of registrars. we service a very very large number of registrars We thought that was maybe the path that would lead to the most productive results in the short term, is just simply addressing the needs of a very large and diverse and evolving channel. we thought that was maybe the path that would lead to the most productive results in the short term is just simply addressing the needs of a very large and diverse and evolving channel We concentrated on listening to them, learning what they're doing, engage with them, return, assess, adapt, revise, and present, and we get engagement. we concentrated on listening to them learning what they're doing engage with them return assess adapt revise and present and we get engagement It's less driven by what we think this program will do rather than what they really need to go out and market our products, which are really great, reliable, trusted products. It's less driven by what we think this program will do rather than what they really need to go out and market our products, which are really great, reliable, trusted products. it's less driven by what we think this program will do rather than what they really need to go out and market our products which are really great reliable trusted products

Speaker 1: Makes sense. Thank you very much, Jim. Makes sense. makes sense Thank you very much, Jim. thank you very much jim

Speaker 6: That concludes today's question and answer session. I'll turn the conference back to David Atchley for final comments. That concludes today's question and answer session. that concludes today's question and answer session I'll turn the conference back to David Atchley for final comments. i'll turn the conference back to david atchley for final comments

Speaker 2: Thank you, operator. Please call the investor relations department with any follow-up questions from this call. Thank you for your participation. This concludes our call. Have a good evening. Okay. Thank you, operator. thank you operator Please call the investor relations department with any follow-up questions from this call. please call the investor relations department with any follow-up questions from this call Thank you for your participation. thank you for your participation This concludes our call. this concludes our call Have a good evening. have a good evening Okay. okay