VALUATION HIGHLIGHTS

1. Domain Names constitute 100% of the Trefis price estimate for VeriSign's stock.

WHAT HAS CHANGED?

VRSN Stock vs. S&P500 Performance

The changes in VRSN stock over the recent years have been far from consistent. Returns for the stock were 17% in 2021, -19% in 2022, 0% in 2023, and 0% in 2024.

In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, 24% in 2023, and 23% in 2024 — indicating that VRSN underperformed the S&P in 2021, 2023, and 2024.

Q4'24 Earnings

VeriSign reported net sales of $395 million in Q4'24, up 3.9% from the prior year quarter. Operating income rose from $256 million to $264 million over this period. VeriSign's EPS declined to $2.00 from $2.60 during the quarter.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of VeriSign's value that present opportunities for upside or downside to the current Trefis price estimate for VeriSign:

.com & .net domain names

• Number of domain registrations: As more businesses establish an online presence, domain name registrations have been steadily increasing. In 2024, the total number of registered domain names reached 169 million, and we project this figure to grow to approximately 190 million by the end of our forecast period.
  However, should the growth rate surpass our expectations and the registration count approach 250 million, there could be a 30% upside to the Trefis price estimate for VeriSign's stock.
  Conversely, if an increase in domain name prices dampens demand, and the registration count grows slower than anticipated, reaching only 175 million by the end of the Trefis forecast period, this could result in a downside of nearly 10% to the Trefis price estimate for VeriSign's stock.

For additional details, select a driver above or select a division from the interactive Trefis split for VeriSign at the top of the page.

BUSINESS SUMMARY

Historically, VeriSign's business was primarily composed of two segments: Domain Names and SSL & Authentication Services. In May 2010, the company divested its SSL and Authentication Services business to Symantec for $1.28 billion.

Domain Names:

Within its core Domain Names business, VeriSign maintains exclusive registry control over the widely used .com and other internet domain extensions. The company generates revenue by collecting a fixed fee each time an individual or business registers a new domain name or renews an existing one.

SOURCES OF VALUE

The value of the Domain Name division is primarily derived from the following:

Large Market For Domain Names

The total base of domain names stood at 169 million in 2024. VeriSign currently charges an average of $9.2 per year for each domain.

ICANN (The Internet Corporation for Assigned Names and Numbers) approves a price increase periodically, and this is expected to be reflected in the company's pricing policies.