.Com domain base drops, hurting Verisign’s prospects.
Verisign (NASDAQ: VRSN) released earnings this afternoon and has downgraded its guidance for 2024.
The company ended Q1 2024 with 172.5 million domains across .com and .net, down 0.27 million from the end of last year.
.Com domains under management slipped 0.2 million, while .net remained largely unchanged.
9.5 million new .com and .net domains were registered in Q1, down from 10.3 million in the same quarter of 2023.
While the number of domains fell, Verisign still grew its topline by 5.5% thanks to price increases. It is increasing .com prices again by 7% this September.
Price increases have helped Verisign show revenue growth despite its falling domain base, but it doesn’t get automatic price increases in 2025 and 2026, which means it will need to grow domain registrations to show revenue growth.
Verisign also lowered its guidance for 2024.
It initially estimated its domain base would be within a -1.0% to +1.0% band this year; now it estimates -1.75% to +0.25%.
It has lowered its revenue estimate from $1.56 billion – $1.58 billion down to $1.555 billion – $1.57 billion.
It has narrowed its operating income guidance but increased the lower bound.
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