Company forecasts a drop for Q4.
Verisign (NYSE: VRSN) expects the total number of .com and .net domain names registered at the end of the fourth quarter to be less than at the beginning of the quarter. In other words, more domain names will be deleted than are registered during the quarter.
CEO Jim Bidzos disclosed on today’s investor conference call that the company expects the total base to drop by 1.5 million to 2.8 million domain names during the fourth quarter.
In other words, this long and steady growth chart is about to go negative:
I’ve explained the reason for this predicted drop before. At a high level, new registrations in Q4 of 2015 were much higher than expected due to Chinese speculation. Those new registrations are coming up for renewal now, and many of them are unlikely to be renewed.