Cash flow from operations decrease 7.7% year-over-year in 3Q15
In 3Q15, VeriSign (VRSN) had cash, cash equivalents, and marketable securities of $1.9 billion, an increase of $466 million compared to year-end 2014. Cash flow from operations was $155 million in 3Q15 compared to $168 million in 3Q14. Capital expenditure stood at $7 million, and the company repurchased 2.3 million common shares worth $156 million in 3Q15.
VeriSign adds 1.68 million new domain names in 2Q15
VeriSign added 1.68 million net new domain names in 3Q15 to end with 135.2 million .com and .net names in its domain name database. This was an increase of 3.4% year-over-year.
In3Q15, VeriSign processed 9.2 million new domain name registrations for .com and .net compared to 8.7 million in 2Q14. The final .com and .net renewal rate for 2Q15 was 72.7% compared to $71.8% for 2Q14.
Outlook for fiscal 2015
VeriSign’s revenues for fiscal 2015 are expected to be around 1 billion, an increase of 3.5%–4.5% YoY (year-over-year). Non-GAAP (generally accepted accounting principles) gross margin is expected to be 80%, and operating margin is expected to be 60%–62%.
Capital expenditure for fiscal 2015 is expected to be in the range of $40–$50 million for 2015. VeriSign’s year-over-year growth is similar to other Internet stocks such as Yahoo! (YHOO) but lower than fast-growing stocks such as Facebook (FB) and Akamai Technologies (AKAM).
For diversified exposure to VeriSign, you can invest in the iShares U.S. Tech. ETF (IYW) and the Vanguard Mid-Cap Growth ETF (VOT). IYW and VOT invest about 2.09% and 0.20% of their holdings, respectively, in VeriSign.