Domain Name Wire

Domain Name Wire

Displaying posts tagged under "VeriSign"

  • Verisign stock jumps after earnings report

    1. BY - Jul 25, 2014
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    Stock investors still think .com is king.

    Verisign reported earnings yesterday and shares in the company are up 12% in trading so far today.

    Why the jump in share price after a dismal quarter for net domain name adds?

    Well, Citigroup upgraded the company from sell to neutral today saying “fundamentals have likely bottomed”. Financials apparently exceeded most expectations.

    Verisign had just 0.42 million net adds in .com and .net last quarter. It expects Q3 net adds to rebound to between 0.6 million and 1.1, which is definitely a move in the right direction. With slipping renewal rates, these targets would indeed be rather strong and require strong new registrations.

    The company also announced a 10% price hike on .net. No knowledgeable analyst didn’t see that coming, though.

    Of course, when the first credible report comes out suggesting that new TLDs are making a dent in .com…

  • Verisign reports slowing growth, hikes .Net prices 10%

    1. BY - Jul 24, 2014
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    .Com base inches forward, .Net prices are increasing.

    VerisignVerisign reported earnings after the bell today, and the results for .com/.net aren’t that promising.

    It gets harder to grow something as it gets bigger, but net adds across these two domain names slowed by quite a bit.

    Verisign reported just 0.42 million net new ads during the second quarter. Last year in the same quarter it added 1.2 million domain names.

    The good news for Verisign is that new registrations of .com and .net remain fairly strong. 8.5 million new .com/.net domain names were registered last quarter, compared to 8.7 million for the same quarter last year.

    The number is down, but not by that much. The company predicts a rebound in Q3.

    Even better, Verisign is invoking its allowed price hike on .net domain names. The price will jump from $6.18 to $6.79 on February 1, 2015.

    Who needs to grow the zone when you can just increase prices 10% a year?

    Verisign used to be able to do that with .com, too. The U.S. government stepped in to put a halt to that.

  • Verisign withdraws IDN application and explains drop in .com/.net growth

    1. BY - Apr 25, 2014
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    Verisign cites a number of headwinds in its existing TLD business while it withdraws one of its IDN applications.

    VerisignVerisign held its quarterly investor conference call yesterday after releasing it first quarter earnings.

    The company processed 8.6 million new registrations across .com/.net, compared to 8.8 million in the same quarter a year ago. The renewal rate also dipped.

    Here’s what Verisign discussed on the call.

    Why the growth rate is shrinking

    Verisign blamed a number of factors for slowing growth:

    • Registrars focusing on bundles and average revenue per user instead of using domains for customer-acquisition. The company has noticed some registrars returning to a domain-focused pitch, especially outside of the U.S.
    • Changes in pay-per-click (e.g. parking, heavily monetized sites).
    • The law of large numbers, which makes it more difficult to push the needle.

    Additionally, CEO James Bidzos said it was too early to tell how much impact new TLDs will have on growth:

    …there are roughly 100 — over 100 new gTLDs that are delegated into the zone, and they’re accepting registrations right now, and have been pretty much for most of the first quarter, for roughly almost 3 months now. And in total, there are about 570,000 registrations in, collectively, all of the new gTLDs year-to-date. I think that information is current as of just a couple of days ago. So it’s too soon to tell if any of those registrations or what part of those registrations are at the expense of a .com or a .net registration, because until we see the first renewal cycle on these new gTLDs, it’s really going to be difficult to assess how much impact they might have on the .com/.net zone.

    The company expects 0.3 million to 0.8 million net adds in Q2.

    New TLDs

    Verisign has withdrawn its application .com IDN transliteration in traditional Chinese while retaining its simplified Chinese application. This was due to ICANN’s policy on variants, which Verisign said did not consider one applicant applying for variants. It hopes it will be able to reinstate the traditional Chinese application once this policy is settled. It went with simplified Chinese because it believes it’s a bigger market.

    Also, Verisign thinks one of its back-end registry customers for new TLDs will launch in the second quarter.

    Monetizing intellectual property

    Verisign reported that it is beginning to receive inquiries from competing registry operators about using certain elements of its patented registry technology.

  • Verisign reports slowing .Com/.Net registrations in Q1

    1. BY - Apr 24, 2014
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    New registrations and renewal rate dip.

    VerisignVerisign reported first quarter earnings today after the bell. The company reported revenue of $249 million, a 5% increase from the first quarter of 2013.

    The company added 1.28 million net new names during the first quarter to .com and .net, ending the quarter with 128.5 million active domain names in the zone.

    Some other metrics weren’t as rosy.

    Verisign processed 8.6 million new domain name registrations for .com and .net last quarter. That’s below the 8.8 million number in the same period in 2013.

    The final renewal rate from Q4 2013 also dipped. The renewal rate was 72.2 percent compared with 72.9 percent Q4 2012.

    I suspect the company will blame changes in monetization on its conference call this afternoon. A bigger question going forward is if new top level domain names can siphon off some of those 8.6 million quarterly registration.

  • Verisign: 271 million domain names registered

    1. BY - Apr 09, 2014
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    Universe of registered domain names slowing ticking upward.

    Verisign has resumed publishing its Domain Name Industry Brief, a report it used to publish quarterly.

    The company reports (pdf) that there were 271 million domain names registered as of December 31 across all top level domain names. That’s a 1.9% increase over the previous quarter and 7.3% for the year.

    This number includes free .tk domain names. The Tokelau country code domain name is the most-registered ccTLD on the internet.

    As always, Verisign took time to push its PR messaging in the report. (That’s the point, after all!)

    One of those messages it has been pushing lately is that there are plenty of .com domain names still available.

    Technically, that’s right. There are over 10 to the 98th (1 followed by 98 zeros) second level domains available under .com. Only 112 million of them are registered. 8 zeros vs. 98.

    Of course most of those available domains are crappy.

    For example, Verisign points out that only half of the possible 1.8 million four letter .com domains are registered. Yet that number includes domains with numbers and hyphens, so it includes losers such as If you just include four letter domain names the universe shrinks to under a half million possibilities.

    Here’s a chart showing availability by domain length: