Revenues of $266 million in 3Q15
On October 22, 2015, VeriSign (VRSN) reported its 3Q15 results, including revenues of $266 million—a 4.2% increase compared to revenues of $255 million in 3Q14. The company’s net income for 3Q15 was $92 million and its diluted earnings per share (or EPS) were $0.70 compared to net income of $95 million and diluted EPS of $0.69 in 3Q14. Its operating margin increased from 54.7% in 3Q14 to 58.1% in 3Q15.
In 3Q15, VeriSign’s non-GAAP (generally accepted accounting principles) net income of $103 million and diluted EPS of $0.78 compared to net income of $97 million and diluted EPS of $0.70 for 3Q14. The company’s non-GAAP operating margin increased as well from 60.6% in 3Q14 to 62.7% in 3Q15.
“Our quarterly results demonstrate the ongoing strength of our business and our execution discipline, which continue to produce value for our shareholders,” commented Jim Bidzos, executive chairman, president, and chief executive officer.
Overview of the firm
VeriSign, an $8.01 billion company, has tracked Internet registrations since 1995. It generated $965.1 million in revenue last year. As of June 30, 2014, VeriSign had ~133.5 million domain names registered under its principal registries, .com and .net.
With end users navigating with search engines or social media instead of direct navigation, VeriSign also sees competition from search engine operators such as Google (GOOGL), Microsoft (MSFT), and Yahoo! (YHOO), operators of social networks such as Facebook (FB), and operators of micro blogging tools such as Twitter (TWTR).
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 2.1% and 0.2% of their holdings, respectively, in VeriSign.