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VeriSign blames domain monetization for lower renewal rate

July 26, 2012Domain Parking, Domaining, Domainnamewire, Uncategorized, VeriSign, vrsnComments Off on VeriSign blames domain monetization for lower renewal rate

Lower than usual renewal rate blamed on search engine changes.

Verisign had its second best quarter ever for new domain name registrations last quarter, but its renewal rate was lower than usual.

The company cites two reasons. First, there were large promotions by domain registrars a year ago (apparently mostly from one large registrar) that led to an uptick in new registrations that came up for renewal last quarter.

Second, and more interesting, Verisign blames “search engine adjustments”.

…search engine adjustments made over the past several months affected the economics, which drove domain monetization rates in the first half of 2012. While monetization rates have increased for better performing sites, lower performing sites do not seem to be benefiting.

This is somewhat perplexing. The company clearly refers to domain name monetization in its call, but it seems that it’s talking more about auto generated or low quality web sites. Google did take efforts in recent months to kick parked domains out of its index. But the context of the call also seems to refer to web sites.

In other notable Verisign news, the company announced that it will start providing on its web site more frequent updates to the .net and .com domain name base.


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Domain stocks doing very well this year

May 30, 2012Demand Media, dmd, Domaining, Domainnamewire, tcx, Tucows, Uncategorized, VeriSign, vrsn, web.com, wwwwComments Off on Domain stocks doing very well this year

Tucows more than doubles and other domain stocks also on a tear.

It has been a decent year for the NASDAQ so far. But returns on domain stocks have been exceptional.

Consider Tucows (TCX), which opened the year at 75 cents. It has more than doubled to $1.52 at today’s open. The company continues to buy back stock, but I also think there’s overall enthusiasm for its domain business and the prospects of its mobile phone offering Ting.

Demand Media, which owns eNom, has jumped 35% this year to today’s open of $9.52. Investors are becoming more comfortable with the company’s ability to adapt to search engine algorithm changes. It’s also well positioned to take advantage of new top level domains. As a registrar, it will certainly profit from other company’s new TLDs. More risky is its $18 million bet on its own new TLDs.

Web.com (WWWW), which owns domain registrars Register.com and Network Solutions, is also up 35% this year to today’s $15.97 open.

Finally, .com and .net registry VeriSign (VRSN) has marched forward 9% this year. It has a lot of new TLD clients (over 200 applications), but I suspect its revenue from new TLDs will remain insignificant compared to its .com registry revenue for the foreseeable future.


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VeriSign Monopoly Case Fizzles, No Break for Domainers

May 11, 2011Domaining, Domainnamewire, Policy & Law, VeriSign, vrsnComments Off on VeriSign Monopoly Case Fizzles, No Break for Domainers

CFIT settles with VeriSign for $0.

Hopes by domainers that .com prices would fall thanks to an antitrust lawsuit have officially been dashed.

VeriSign just released a press release stating that Coalition for ICANN Transparency has agreed to drop a case against it.

The lawsuit attacked both VeriSign’s no-bid contract with ICANN that allowed it to raise prices 7% a year as well as its planned domain waitlisting service.

Although ultimately CFIT lost, I suspect their biggest concern was not the rising cost of dot coms but the waitlist service. CFIT was backed by Pool.com, which was one of the biggest domain backordering services when the case was originally filed. VeriSign’s proposed service would have effectively killed its business dropcatching .com domains.

VeriSign’s stock price has reacted strongly to developments in this case in the past. This announcement was released after the bell and the stock has not changed in after hours trading.

(via DomainIncite)


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Related posts:

  1. VeriSign Scores a Win in Antitrust Lawsuit
  2. VeriSign Loses Big in Court on .Com Domains
  3. Enom to break out ICANN “tax”

VeriSign Loses Money (Sort Of) as .Com and .Net Top 105 Million

January 27, 2011Domain Services, Domaining, Domainnamewire, VeriSign, vrsnComments Off on VeriSign Loses Money (Sort Of) as .Com and .Net Top 105 Million

Excluding a one time charge VeriSign reports nice earnings for Q4.

VeriSign reported a loss for the fourth quarter of 2010 in earnings just released.

So how can the company that prints money with the .com and .net registry lose money?

It was a one time charge related to contingent interest on a special dividend that swung the company to a loss. Ignore this one time event and VeriSign had a great quarter thanks to rising domain registrations. The company earned and adjusted EPS of $.31 when the street was expecting $.30.

Year-on-year revenues rose 13% as the .com and .net base topped 105.2 million.

As I’ve said before, it’s not VeriSign you should blame for making so much money.


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Related posts:

  1. .Com and .Net Base Tops 100 Million Domain Names
  2. .Com and .Net Base to Top 100 Million This Quarter
  3. VeriSign Swings to Profit in Q3, Domain Name Base up 6%

VeriSign Withdraws Request for “Domain Name Exchange” Service

May 19, 2010domain name exchange, Domain Services, Domaining, Domainnamewire, icann, VeriSign, vrsnComments Off on VeriSign Withdraws Request for “Domain Name Exchange” Service

Registry nixes domain trade-in plans — for now.

Last month VeriSign submitted an evaluation request to ICANN for a so-called “Domain Name Exchange”. VeriSign has withdrawn the request according to the evaluation status on ICANN’s web site.

The service would basically allow domain name registrars to return unused domain names in exchange for others. This would be ideal for companies that sell web packages for less than a year at a time. For example, a web host might offer a monthly package that includes a domain name. If the customer cancels after a month, the web host is stuck with the domain for which it already pre-paid for a year.

In its initial request VeriSign noted that some members of the Intellectual Property Constituency might be concerned about how the service could be gamed into a sort of domain name tasting service.

Although it’s unclear why VeriSign withdrew the request, it could be that the timing was untenable given current intellectual property concerns with new top level domain names.


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Related posts:

  1. VeriSign Proposes Domain Name Exchange Service
  2. VeriSign Notifies Registrars About Domain Tasting Changes
  3. ICANN Going to Colombia in December