Latest news of the domain name industry

Recent Posts

.com renewals lowest in years, but Verisign sees lockdown bump anyway

.com and .net saw decent growth in the lockdown-dominated second quarter, despite Verisign reporting the lowest renewal rate since 2017.

The company last night reported that it sold more new domains in Q2 than it did in the same period last year — 11.1 million versus 10.3 million a year ago.

It added a net 1.41 million names across both TLDs in the quarter, compared to growth of 1.34 in Q2 2019.

CEO Jim Bidzos did not directly credit coronavirus for the bump, but he told analysts that the growth was driven primarily by small businesses in North America getting online. The US went into lockdown in the last week of March.

Verisign has now upped its guidance for the year. It now expects growth in domains of between 2.75% and 4%. That’s higher than the guidance it was giving out at the start of the year, pre-coronavirus.

The company had lowered this guidance to between 2% and 3.75% in April due to coronavirus uncertainties, which with hindsight clearly seems overly cautious.

On the flipside, Verisign’s estimated renewal rate for the quarter was down to only 72.8%, down from 74.2% a year ago, the worst it’s been since Q1 2017, when renewals were suffering through the tail-end of a massive Chinese junk drop.

But Bidzos said that the low rate was “primarily related to the lower overall first-time renewal rate”, suggesting that it might be more due to registrar promotions or heightened speculation a year ago than any coronavirus-related drag factor.

For Q2, Verisign reported revenue up 2.6% year over year at $314 million, with net income up from $148 million to $152 million.

The company also announced yesterday that it is freezing its prices across all of its TLDs until March 31, 2021.

You’ll recall that it gets the right to increase prices 7% starting on October 26 this year, under its new deal with ICANN and the US government, and Verisign confirmed yesterday that there will definitely be a price increase next year.

Because there’s a six-month notice period requirement in the contract, news of the timing of this increase could come as soon as September this year.

Domain growth flat in Q2

Kevin Murphy, September 18, 2017, Domain Registries

Growth in the volume of registered domain names was exactly the same in the second quarter as it was in the first.

That’s according to the latest Domain Name Industry Brief, published by Verisign late last week.

Q2 closed with 331.9 million registered names, up 1.3 million or 0.4% sequentially. The Q1 DNIB published three months ago also showed net growth of 1.3 million names.

That’s an increase of 6.7 million names, 2.1%, over the second quarter 2016, which compares unfavorably to the first quarter’s annual growth of 11.8 million names.

A slight majority of the 1.3 million bump seems to have come from .com and .net, which together grew from 143.6 million to 144.3 million names, roughly a 700,000 name or 0.4% sequential increase.

ccTLDs fared a little better, going to to 144.2 million names from 143.1 million in Q1. That’s a 1.1 million increase.

New gTLDs took the edge off the overall industry growth, shrinking from 25.4 million names in Q1 to 24.3 million in Q2.

That’s largely due to the expiration of millions of speculative .xyz registrations that were given away for free or nearly free in 2016.

As anticipated, .xyz fell off the top 10 list of all TLDs to be replaced by 17-year-old .info, which added an impressive 300,000 names to wind up in the #9 spot ahead of flat Netherlands ccTLD .nl.