VeriSign, Inc. (NASDAQ:VRSN) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 04:30 pm ET

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VeriSign, Inc. (NASDAQ:VRSN) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day everyone. Welcome to VeriSign's Fourth Quarter and Full Year 2018 Earnings Call. Today's conference is being recorded and 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 2018 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 2018 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 in the Investor Relations section of our website. In a moment, Jim and George will provide some prepared remarks and afterwards we will open 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. I'm pleased to report another solid year for VeriSign. Fourth quarter and full year 2018 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. 2018 was marked by strong financial performance during, which we generated revenues of $1,215 million, $661 million in free cash flow and 2018 full year non-GAAP operating margin of 67.5%.

2018 was a strong year for the .com and .net domain name base as the company processed 38.2 million registrations and finished the year with 153 million names. During the year, we marked more than 21 years of uninterrupted availability of the VeriSign DNS for .com and .net. As we announced on November 1, last year VeriSign and the Department of Commerce entered into Amendment 35 to the Cooperative Agreement. The amendment among other things permits VeriSign without further approval of the DOC to engage with ICANN to change the .com Registry