Verisign (VRSN) Q4 Results Matched Expectations

Verisign Inc. (NASDAQ:VRSN) history goes back to 1995 when RSA Data Security spun off one of its divisions and named it Verisign. It initially offered products and services that enabled secure online transactions. It became a dominant player in the domain registration business after acquiring Network Solutions in 2000. Verisign is currently a leading provider of domain name registry services in the world.

The Reston, Virginia-based company recently announced its financial results for the fourth quarter. It reported earnings of $157.3 million, or $1.38 per share for the three months ended Dec. 31, as compared to $1.26 per share in the comparable period of 2019. Analysts on average were looking for a profit of $1.33 per share.

Speaking on the results, CEO Jim Bidzos said, “Reliance on internet services increased significantly due to the global events of 2020. Our resilient network design and preparedness over decades for challenging scenarios, and our agility and preparation for working remotely, enabled us to reliably and securely meet increased global dependence on the internet.”

Revenue came in at $320.3 million, up 3.1 percent from the year-ago quarter, and in line with the consensus forecast. The company processed 10.5 million new domain name registrations for both .com and .net in the fourth quarter, slightly up from 10.3 million in the same period of 2019.

Moreover, Verisign repurchased $170 million worth of its common stock during the fourth quarter. Its board has granted permission for repurchasing another $747 million worth of common stock, bringing the total amount under the stock buyback program to $1 billion.

Verisign shares did not gain any value following the Q4 results. Overall, the stock has traded mostly flat over the past year, declining nearly 3 percent during the past 12 months, and down nearly 6 percent on a year-to-date basis.