Soft demand in China hurts Verisign’s quarter.
The .com and .net name base grew 0.1% year over year and fell 0.1% quarter over quarter. Image from Verisign investor presentation.
Verisign (NASDAQ: VRSN) reported Q2 earnings after the closing bell yesterday.
Revenue grew 5.7% year over year and operating income grew 5.5%.
The overall base of .com and .net domain names under management slipped 0.32 million (0.1%) from the end of Q1 2023, and increased just 0.1% from the end of Q2 2022. With this drop, Verisign narrowed its full-year guidance for growth in the domain base to 0.0 to 1.0 million. It originally predicted 0.0 to 2.5 million.
China is to blame for the softness. Revenue fell 9.8% year over year in China, while growing 7.2% in the U.S, 0.5% in EMA, and 15.0% elsewhere.
The company says both renewals and new registrations are dragging in China.
Verisign also announced it is raising .net prices by 10% on February 1. Prices will increase from $9.92 to $10.91. Verisign’s contract renewal with ICANN allows it to increase prices by up to 10% per year.
Post link: Verisign: China weighs on .com, .net prices going up
© DomainNameWire.com 2023. This is copyrighted content. Domain Name Wire full-text RSS feeds are made available for personal use only, and may not be published on any site without permission. If you see this message on a website, contact editor (at) domainnamewire.com. Latest domain news at DNW.com: Domain Name Wire.
