VeriSign, Inc. (NASDAQ:VRSN) Q4 2017 Earnings Conference Call Transcript

Feb 08, 2018 • 04:30 pm ET

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VeriSign, Inc. (NASDAQ:VRSN) Q4 2017 Earnings Conference Call Transcript

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Operator
Operator

Good day everyone. Welcome to VeriSign's Fourth Quarter and Full Year 2017 Earnings Call. Today's conference is being recorded. An 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 2017 earnings call. With me are Jim Bidzos, Executive Chairman, President and CEO; Todd Strubbe, Executive Vice President and COO; and George Kilguss, Executive Vice President and CFO.

This call and our presentation are being webcast from our Investor Relations website, which is available under About VeriSign on verisign.com. There, you will also find our fourth quarter and full year 2017 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 reports on Forms 10-K and 10-Q, 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 the call for your questions.

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

Executive
James Bidzos

Thanks David, and good afternoon everyone. I'm pleased to report another solid quarter which kept the strong 2017 for VeriSign. Fourth quarter and full year 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. In 2017 VeriSign delivered strong financial performance reporting $1.165 billion in revenues, resulting in $653 million in free cash flow and generating full year 2017 non-GAAP operating margins of 65.3%. 2017 was a strong year for the .com and .net domain name base, in which the company processed 36.7 million registrations and finished the year with 146.4 million names. During the year we marked more than 20 years of uninterrupted availability of the VeriSign DNS for .com and .net.

Also last year we renewed the .net registry agreement for another six years until 2023. During the fourth quarter, we continued our share repurchase program by repurchasing 1.3 million shares for $145 million. During the full year 2017,