VeriSign, Inc. has recently released its 10-Q report, revealing a 4% increase in revenue to $387.1 million and a 7% increase in operating income to $266.2 million for the three months ended June 30, 2024, compared to the same period in 2023. The company recorded a 2.2% decrease in .com and .net domain registrations, reflecting a net decrease of 1.8 million domain name registrations from March 31, 2024. The final .com and .net renewal rate for the first quarter of 2024 was 74.1%, down from 75.5% for the first quarter of 2023.
VeriSign's revenues are primarily derived from registrations for domain names in the .com and .net domain name registries. As of June 30, 2024, the company had 170.6 million .com and .net registrations in the domain name base. Revenues increased primarily due to .com price increases effective September 1, 2023 and 2022, and .net price increases effective February 1, 2024 and 2023. However, the decline in the .com and .net domain name base and the elimination of revenue from the operation of the .gov gTLD, which was transitioned to another service provider in the fourth quarter of 2023, partially offset this growth.
The company generated cash flows from operating activities of $417.7 million during the six months ended June 30, 2024, compared to $404.3 million for the same period in 2023. VeriSign also repurchased 2.2 million shares of its common stock for an aggregate cost of $388.0 million during the three months ended June 30, 2024. Effective July 25, 2024, the Board of Directors authorized the repurchase of VeriSign's common stock in the amount of $1.11 billion, in addition to the $388.0 million that remained available for repurchases under the share repurchase program, for a total repurchase authorization of up to $1.50 billion under the program.
The company's geographic revenues saw a 4% increase in the U.S., a 9% increase in EMEA, a 17% decrease in China, and a 10% increase in other countries for the three months ended June 30, 2024, compared to the same period in 2023. Revenues from registrars based in China declined due to lower demand, while the majority of revenue growth was generated from registrars in the U.S., EMEA, and certain other countries.
VeriSign's cost of revenues decreased slightly during the three months ended June 30, 2024, compared to the same period last year, due to a combination of individually insignificant factors. Research and development expenses increased by 7% to $23.8 million, and selling, general and administrative expenses increased by 7% to $48.6 million during the three months ended June 30, 2024, compared to the same period last year. As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $176.74. Check out the company's full 10-Q submission here.
