VeriSign Earnings: China Continues to Drag on Domain Base, With Added Pressure From Soft US Market

We maintain our $200 fair value estimate for wide-moat VeriSign following mixed first-quarter 2024 results. The .com and .net domain name base was once again hindered by soft registration demand in China in part due to a weaker local currency and burdensome local internet regulation. While these headwinds from China are an ongoing issue, we were surprised by persistent soft demand in the US as local domain registrars pivot focus to upselling to the base, raising retail prices and driving higher profitability, while pulling back on marketing efforts that target new customer growth.