VeriSign (VRSN): 170M+ Domains Provide Steady Recurring Revenue


VeriSign, Inc. (VRSN)

VeriSign, Inc. is a global provider of domain name registry services and internet infrastructure. Best known as the exclusive operator of the .com and .net top-level domains, VeriSign plays a critical role in maintaining internet stability and security. It manages over 170 million domain names and processes billions of daily DNS queries with near-perfect uptime, making it essential to the digital economy.

The company generates revenue through registration fees and domain renewals, operating under long-term agreements with ICANN. Its contract to manage .com extends to 2027, with built-in price increases approved by regulators. VeriSign benefits from steady, recurring revenue and low capital expenditures, enabling high margins and consistent free cash flow. Domain growth and price hikes remain key earnings drivers.

VeriSign’s financial strength, including strong cash flow and a history of share repurchases, makes it attractive to long-term investors. As global internet usage expands, domain name demand remains steady across industries and geographies. With a secure moat, minimal competition, and scalable infrastructure, VeriSign is positioned as a high-margin digital utility. Chart


 


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