Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you clarify the conditions affecting U.S.-based .com growth within registrars?
A: D. James Bidzos - VeriSign, Inc. - Executive Chairman, CEO & President: The focus on Average Revenue Per User (ARPU) has led to higher retail pricing and reduced promotional offers by registrars, impacting demand and registration volumes. Additionally, decreased marketing and advertising expenditures are contributing to lower renewal rates.
Q: What types of marketing programs are planned to drive a return to growth in 2025?
A: D. James Bidzos - VeriSign, Inc. - Executive Chairman, CEO & President: New marketing programs targeting .com and .net are being introduced, focusing on diverse business models and geographic footprints of registrars. These programs are designed to increase engagement with VeriSign's TLDs and are based on feedback from the community.
Q: Are there additional expenses anticipated in the second half of the year related to these new marketing programs?
A: George E. Kilguss - VeriSign, Inc. - Executive VP & CFO: The expenses for these programs are already budgeted and reflected in the current guidance, with no direct additional expenses expected.
Q: How has the visibility into the China market changed, and what are the expectations for this market?
A: D. James Bidzos - VeriSign, Inc. - Executive Chairman, CEO & President: Visibility into the China market remains limited, with ongoing regulatory and economic challenges expected to continue affecting the market throughout 2024. The impact of these factors makes the market's future uncertain.
Q: Can you discuss the impact of registrar pricing focus on .com domains and how it compares to other TLDs?
A: D. James Bidzos - VeriSign, Inc. - Executive Chairman, CEO & President: The focus on ARPU is affecting .com more significantly due to its premium positioning and higher renewal rates. Other TLDs, particularly in markets like China, are being priced very low, which affects the competitive landscape.
Q: What is the status of the .web domain and any updates on its progress?
A: D. James Bidzos - VeriSign, Inc. - Executive Chairman, CEO & President: VeriSign and NDC have filed an application to participate in a second Independent Review Process (IRP), following ICANN's decision to delegate .web to NDC. The situation remains in litigation with no significant updates on the resolution or deployment of .web.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
