VeriSign, Inc. (VRSN): Never selling. Unless I have to. Then I...

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Rkramden

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Friday, 02/17/2023 1:50:55 AM

Friday, February 17, 2023 1:50:55 AM

Never selling. Unless I have to. Then I will. But probably not.

Sustainable Organic Growth
VeriSign is able to achieve highly-sustainable organic growth in two ways -- rate hikes and a growing number of domain names hosted.

As you can imagine, hosting the majority of commercial internet comes with massive advantages and responsibilities, and so VeriSign is highly regulated. Can you imagine if VeriSign forced everyone to pay ridiculous amounts for hosting their highly-vital domain names? This is why VeriSign is regulated by the Internet Corporation for Assigned Names and Numbers (ICANN).

Nevertheless, this gives the company the ability to request rate hikes for its services. These rate hikes are subject to review and approval by ICANN, but they can contribute significantly to the company's revenue growth. In fact, a few days ago, VeriSign announced a 7% increase in .com prices to take effect on September 1, 2023, in line with to regulators' prior approval for VeriSign to increase prices by 7% per annum over six years.