Domain name registry operator Verisign (NASDAQ:VRSN) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.7% year on year to $402.3 million. Its GAAP profit of $2.10 per share was in line with analysts’ consensus estimates.

Is now the time to buy VeriSign? Find out in our full research report .

VeriSign (VRSN) Q1 CY2025 Highlights:

“Verisign delivered solid results in the first quarter. As part of our ongoing commitment to return value to shareholders, I’m particularly pleased to announce the initiation of a quarterly cash dividend,” said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.

Company Overview

While the company is not a domain registrar and does not directly sell domain names to end users, Verisign (NASDAQ:VRSN) operates and maintains the infrastructure to support domain names such as .com and .net.

E-commerce Software

While e-commerce has been around for over two decades and enjoyed meaningful growth, its overall penetration of retail still remains low. Only around $1 in every $5 spent on retail purchases comes from digital orders, leaving over 80% of the retail market still ripe for online disruption. It is these large swathes of the retail where e-commerce has not yet taken hold that drives the demand for various e-commerce software solutions.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, VeriSign grew its sales at a weak 5.3% compounded annual growth rate. This fell short of our benchmark for the software sector and is a rough starting point for our analysis.

This quarter, VeriSign grew its revenue by 4.7% year on year, and its $402.3 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and implies its products and services will see some demand headwinds.

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