[Management View]
VeriSign reported $410 million in revenue for Q2 2025, a 5.9% increase YoY. The domain name base reached 170.5 million, with 10.4 million new registrations. The renewal rate improved to 75.5%. Management emphasized the success of marketing initiatives and registrar engagement, particularly in Asia-Pac.

[Outlook]
VeriSign updated its domain name base growth guidance to 1.2%-2% for 2025. Revenue is expected to be between $1.645 billion and $1.655 billion, with operating income projected at $1.117 billion-$1.127 billion. The company plans to continue its share repurchase program and maintain its dividend policy.

[Financial Performance]
- Revenue: $410 million (Q2 2025), up 5.9% YoY
- Operating Expenses: $129 million, down from $131 million last quarter, up from $121 million YoY
- Net Income: $207 million, up from $199 million last quarter and YoY
- Diluted EPS: $2.21, up from $2.01 YoY
- Operating Cash Flow: $202 million
- Free Cash Flow: $195 million
- Cash and Equivalents: $594 million

[Q&A Highlights]
Question 1: What are the drivers for the domain strength and traction with marketing programs?
Answer: The main drivers include a refocus on new acquisition by registrars and engagement with marketing programs. The preliminary renewal rate improved to 75.5%, and the updated guidance reflects positive momentum with some conservatism due to economic and geopolitical uncertainties.

Question 2: Is the growth in Asia-Pac due to a better economy or improved marketing programs, and any movement in China?
Answer: Growth in Asia-Pac is driven by both economic factors and effective marketing programs. China, part of the Asia-Pac region, shows solid demand, but the company remains cautious due to historical volatility.

Question 3: Are marketing programs driving the change in registrar focus from ARPU to broadening the funnel?
Answer: Both factors are happening concurrently. Registrars are focusing on new customer acquisition, and VeriSign's marketing programs are contributing to this trend. The diverse channel engagement is also improving.

Question 4: Can marketing programs help achieve greater than 2% growth in the future?
Answer: While it's too early to forecast for 2026, the company is confident that the learnings from current programs will lead to improvements. The engagement with registrars is broad and informative, indicating potential for continued growth.

Question 5: Any update on new domain auctions and the impact of Gen AI on the open Internet?
Answer: The new GTLD program by ICANN is expected to open applications in Q2 2026, with no auctions likely. The .web TLD arbitration is progressing, with a final hearing in November 2025. AI is seen as a positive for domain names, enhancing website creation and domain suggestions. VeriSign is cautious in its internal AI adoption to ensure security and stability.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on the strong performance and strategic initiatives. Management's cautious approach to AI and economic uncertainties was noted.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|-------------------------|---------|---------|---------|
| Revenue | $410M | $399M | $387M |
| Operating Expenses | $129M | $131M | $121M |
| Net Income | $207M | $199M | $199M |
| Diluted EPS | $2.21 | $2.10 | $2.01 |
| Operating Cash Flow | $202M | $195M | $160M |
| Free Cash Flow | $195M | $188M | $151M |
| Cash and Equivalents | $594M | $580M | $570M |

[Risks and Concerns]
Economic and geopolitical uncertainties could impact future performance. Historical volatility in the Chinese market remains a concern. The cautious approach to AI adoption reflects potential risks in security and stability.

[Final Takeaway]
VeriSign's Q2 2025 performance highlights strong domain growth and effective marketing strategies, particularly in Asia-Pac. The company raised its guidance for 2025, reflecting positive trends while maintaining a cautious outlook due to economic uncertainties. The ongoing share repurchase program and dividend policy emphasize financial discipline. Management's strategic focus on registrar engagement and tailored marketing programs is expected to drive continued growth.