This is our first report on the renowned domain name registry services and internet infrastructure provider, VeriSign. The company had a strong quarter in terms of operations and finances and delivered an all-around beat. It produced solid financial results throughout 2022 while bolstering its vital Internet infrastructure. This was made achievable by conservative expense management, restricted pricing flexibility, and minimal domain name base expansion. Their record of .com and .net DNS availability was extended to over 25 years by adhering to the high operational standards demanded by their ICANN agreements. Revenue increased by 7.3% and operating income by 8.8% in 2022 compared to the previous year. Moreover, the number of shares outstanding at the end of 2022 was 4.8% lower than at the end of 2021. In Q4, there were 9.7 million new registrations. The management anticipates a 0% to 2.5% growth in the number of domain names in 2023. Furthermore, they carried out the transfer of the .tv agreement to a new registry operator during Q4. Around $19 million in revenue was generated by this deal. We initiate coverage on the stock of Fox Corporation with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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