VeriSign, Inc. (NASDAQ:VRSN) Q4 2015 Earnings Conference Call - Final Transcript

Feb 11, 2016 • 04:30 pm ET

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VeriSign, Inc. (NASDAQ:VRSN) Q4 2015 Earnings Conference Call - Final Transcript

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Operator
Operator

Good day, everyone. Welcome to the Verisign's Fourth Quarter and Full Year 2015 Earnings Call. Today's conference is being recorded, and any unauthorized recording of this call is not permitted.

At this time, I would like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir.

Executive
David Atchley

Thank you, operator, and good afternoon, everyone. Welcome to Verisign's fourth quarter and full year 2015 earnings call.

With me are Jim Bidzos, Executive Chairman, President and CEO; Todd Strubbe, Executive Vice President and COO; George Kilguss, Senior Vice President and CFO; and Pat Kane, Senior Vice President, Naming and Directory Services. This call and our presentation are being webcast from the Investor Relations section of our Verisign.com website. There, you will also find our fourth quarter and full year 2015 earnings release. At the end of this call, the presentation will be available on that site, and within a few hours, the replay of the call will be posted.

Financial results in our earnings release are unaudited, and our remarks include forward-looking statements that are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent report on Forms 10-K and 10-Q, and any applicable amendments which identify risk factors that could cause actual results to differ materially from those contained in the forward-looking statements.

Verisign retains its longstanding policy not to comment on financial performance or guidance during the quarter unless it is done through a public disclosure. The financial results in today's call and the matters we will be discussing today include GAAP and non-GAAP measures used by Verisign. GAAP to non-GAAP reconciliation information is appended to our earnings release and slide presentation as applicable, each of which can be found on the Investor Relations section of our website. In a moment, Jim and George will provide some prepared remarks. And afterward, we will open up the call for your questions.

With that, I would like to turn the call over to Jim.

Executive
D. James Bidzos

Thanks, David, and good afternoon, everyone. Our fourth quarter and full year 2015 results were in line with our objectives of offering security and stability to our customers, while generating profitable growth and providing long-term value to our shareholders.

During 2015, Verisign delivered strong financial performance, including reporting $1.059 billion in revenues, expanding free cash flow to $629 million and producing full year non-GAAP operating margins of 61.5%. Operationally, 2015 was another strong year for the company. Verisign processed 38.8 million new.com and.net domain name registrations and finished the year with 139.8 million.com and.net names in the domain name base.

During the year, we marked more than 18 years of uninterrupted availability of the Verisign DNS for.com and.net. As a part of managing our business, during the fourth quarter, we continued our share repurchase program by repurchasing 1.8 million shares for $150 million. During the full year 2015, we repurchased 9.3 million shares for $622 million.

Effective