VeriSign, Inc. (NASDAQ:VRSN) Q2 2019 Earnings Conference Call - Final Transcript

Jul 25, 2019 • 04:30 pm ET

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VeriSign, Inc. (NASDAQ:VRSN) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day everyone, welcome to VeriSign's Second Quarter 2019 Earnings Call. [Operator Instructions]

At this time, I'd 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 second quarter 2019 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 presentation are being webcast from the Investor Relations website, which is available under About VeriSign on verisign.com.

There you will also find our second quarter 2019 earnings release. At the end of this -- 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 on 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 long-standing 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
D. James Bidzos

Thanks David and good afternoon everyone. I am pleased to report another solid quarter for VeriSign second quarter results we're 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. At the end of June, the domain name base in .com and .net totaled $156.1 million consisting of 142.5 million names for .com and 13.6 million names for .net with a year-over-year growth rate of 4.3%.

During the second quarter, we processed 10.3 million new registrations and the domain name base increased by 1.34 million names. Although renewal rates are not fully measurable until 45 days after the end of the quarter. We believe that the renewal rate for the second quarter of 2019 will be approximately 74%. This preliminary rate compares to 75% achieved in the second quarter of 2018.

For 2019 full year, we expect the domain name base growth rate to be between 3% and 4.25% narrowed from our previous range of 2.5% to 4.25%. As noted during our recent earnings calls, we are engaged in a process with