威瑞信 (VRSN) 2024 Q1 法說會逐字稿

Good day, everyone. Welcome to Verisign's First Quarter 2024 Earnings Call. Today's conference is being recorded. Recording of this call is not permitted unless preauthorized. At this time, I'd like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir.

大家好。歡迎參加威瑞信 2024 年第一季財報電話會議。今天的會議正在錄製中。除非預先授權，否則不允許本次通話進行錄音。現在，我想將會議交給投資者關係副總裁兼公司財務主管 David Atchley 先生主持。請繼續，先生。

Thank you, operator. Welcome to Verisign's First Quarter 2024 Earnings Call. Joining me are Jim Bidzos, Executive Chairman, President and CEO; and George Kilguss, Executive Vice President and CFO. This call and presentation are being webcast from the Investor Relations website, which is available under About Verisign on verisign.com. There, you will also find our earnings release.

謝謝你，接線生。歡迎參加威瑞信 2024 年第一季財報電話會議。與我一起的還有執行董事長、總裁兼執行長吉姆‧比索斯 (Jim Bidzos)；以及執行副總裁兼財務長 George Kilguss。本次電話會議和簡報透過投資者關係網站進行網路直播，該網站位於 verisign.com 上的「關於威瑞信」下。在那裡，您還可以找到我們的財報。

At the end of this call, the presentation will be available on that site, and within a few hours, the replay of the call will be posted. Financial results in our earnings release are unaudited, and our remarks include forward-looking statements that are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically the most recent report on Form 10-K.

通話結束後，簡報將在該網站上發布，幾個小時內，通話的重播將被發布。我們的收益發布中的財務表現未經審計，我們的言論包括前瞻性陳述，這些陳述受到我們在向SEC 提交的文件（特別是10-K 表格的最新報告）中詳細討論的風險和不確定性的影響。

Verisign does not update financial performance or guidance during the quarter unless it is done through a public disclosure. The financial results in today's call and the matters we will be discussing today include GAAP results and 2 non-GAAP measures used by Verisign: adjusted EBITDA and free cash flow. GAAP to non-GAAP reconciliation information is appended to the slide presentation, which can be found on the Investor Relations section of our website available after this call.

威瑞信不會更新本季的財務表現或指導，除非以公開揭露的方式進行。今天電話會議的財務表現以及我們今天將討論的事項包括 GAAP 業績和威瑞信使用的 2 項非 GAAP 指標：調整後 EBITDA 和自由現金流。幻燈片簡報中附有 GAAP 與非 GAAP 調節訊息，您可以在本次電話會議後在我們網站的投資者關係部分找到該資訊。

Jim and George will provide some prepared remarks, and afterward, we will open the call for your questions. With that, I would like to turn the call over to Jim.

吉姆和喬治將提供一些準備好的發言，然後，我們將開始電話詢問您的問題。說到這裡，我想把電話轉給吉姆。

Thank you, David. Good afternoon to everyone, and thank you for joining us. In addition to continuing to deliver on our mission as a critical Internet infrastructure provider, we delivered solid and consistent financial results during the first quarter. These results show the continued financial strength of our business model.

謝謝你，大衛。大家下午好，感謝您加入我們。除了繼續履行我們作為關鍵互聯網基礎設施提供商的使命之外，我們還在第一季實現了穩健且一致的財務業績。這些結果顯示了我們商業模式的持續財務實力。

For the first quarter, revenues grew 5.5% year-over-year, operating income grew 7.3% year-over-year and earnings per share grew 12.9% year-over-year. At the end of March, the domain name base in .com and .net totaled 172.5 million domain names, down 270,000 names from year-end 2023. From a new registration perspective, the first quarter ended with 9.5 million new registrations compared with 10.3 million names for the same quarter last year. The renewal rate for the first quarter of 2024 is expected to be approximately 74% compared to 75.5% a year ago.

第一季營收年增5.5%，營業收入年增7.3%，每股收益較去年同期成長12.9%。截至3月底，.com和.net的域名總數為1.725億個域名，比2023年底減少了27萬個。 1030萬個。 2024 年第一季的續約率預計約為 74%，而去年同期為 75.5%。

As we discussed last quarter, we expect our domains under management from our China-based registrars to contract in 2024. In the first quarter, this segment declined by 360,000 names. For the reasons noted in prior quarters, this regional softness has been the primary source of the recent drag on the overall domain name base growth.

正如我們上季度討論的那樣，我們預計中國註冊商管理的網域將在 2024 年收縮。由於前幾季提到的原因，這種區域疲軟一直是近期拖累整體網域基礎成長的主要原因。

We're also seeing some softness from our U.S.-based registrars primarily due to their increased focus on ARPU through higher retail pricing levels, which is impacting new registrations and renewal rates. While we had expected these same factors to gradually subside in 2024, based on our first quarter results and current channel feedback, we now expect these conditions to persist through most of 2024.

我們也看到美國註冊商的表現有些疲軟，主要是因為他們透過提高零售定價水準而更加關注 ARPU，這影響了新註冊和續訂率。雖然我們預計這些因素將在 2024 年逐漸消退，但根據我們第一季的業績和目前的通路回饋，我們現在預計這些情況將持續到 2024 年的大部分時間。

That being said, we're in the process of rolling out new registrar marketing programs to support and improve registration trends for the second half of this year to achieve our goal of returning the domain name base to growth in 2025. We're now expecting the change in the domain name base to be between positive 0.25% to a negative 1.75% for the full year 2024. As a modeling note, the decrease in domain name base is expected to be most pronounced during the second quarter of '24 due to a seasonally larger expiring base of domains during the first half of the year.

話雖如此，我們正在推出新的註冊商行銷計劃，以支持和改善今年下半年的註冊趨勢，以實現我們在 2025 年使域名基礎恢復增長的目標。將在正0.25% 到負1.75% 之間。

Our financial and liquidity position continues to remain stable with $925 million in cash, cash equivalents and marketable securities at the end of the quarter. During the first quarter, we repurchased 1.3 million shares for $260 million. At quarter end, $860 million remained available and authorized under the current share repurchase program.

我們的財務和流動性狀況持續保持穩定，截至本季末現金、現金等價物和有價證券為 9.25 億美元。第一季度，我們以 2.6 億美元回購了 130 萬股股票。截至季末，目前的股票回購計畫仍有 8.6 億美元可供使用和授權。

Now I'd like to turn the call over to George. I'll return when George has completed his financial report with closing remarks.

現在我想把電話轉給喬治。等喬治完成財務報告並發表結束語後我會回來。

Thanks, Jim, and good afternoon, everyone. For the quarter ended March 31, 2024, the company generated revenue of $384 million, up 5.5% from the same quarter of 2023 and delivered operating income of $259 million, an increase of 7.3% from the same quarter a year ago. Operating expense in the first quarter totaled $125 million compared to $124 million last quarter and $123 million in the year ago quarter.

謝謝吉姆，大家下午好。截至2024年3月31日的季度，該公司實現營收3.84億美元，比2023年同季度增長5.5%，實現營業收入2.59億美元，比去年同期增長7.3%。第一季營運費用總計 1.25 億美元，上季營運費用為 1.24 億美元，去年同期營運費用為 1.23 億美元。

Net income in the first quarter totaled $194 million compared to $179 million a year earlier, which produced diluted earnings per share of $1.92 for the first quarter of 2024 compared to $1.70 for the same quarter of 2023. Operating cash flow for the first quarter of 2024 was $257 million, and free cash flow was $254 million compared with $259 million and $253 million, respectively, in the year ago quarter.

第一季淨利潤總計1.94 億美元，而去年同期為1.79 億美元，這使得2024 年第一季攤薄後每股收益為1.92 美元，而2023 年同一季度為1.70 美元。現金流為 2.57 億美元，自由現金流為 2.54 億美元，去年同期分別為 2.59 億美元和 2.53 億美元。

I'll now discuss our updated full year 2024 guidance. Revenue is now expected to be in the range of $1.555 billion to $1.570 billion. Our operating income is now expected to be between $1.047 billion and $1.062 billion. Interest expense and nonoperating income net, which includes interest income estimates, is now expected to be an expense of between $25 million to $35 million. Capital expenditures are now expected to be between $30 million to $40 million, and the GAAP effective tax rate is still expected to be between 21% and 24%.

我現在將討論我們更新的 2024 年全年指南。目前預計收入在 15.55 億美元至 15.70 億美元之間。我們的營業收入目前預計在 10.47 億美元至 10.62 億美元之間。利息支出和營業外收入淨額（包括利息收入估算）目前預計支出在 2,500 萬至 3,500 萬美元之間。目前預計資本支出在 3,000 萬美元至 4,000 萬美元之間，GAAP 有效稅率仍預計在 21% 至 24% 之間。

Overall, Verisign continued to demonstrate sound financial performance during the quarter. Now I'll turn the call back to Jim for his closing remarks.

整體而言，威瑞信本季持續展現出良好的財務表現。現在我將把電話轉回給吉姆，讓他作結束語。

Thank you, George. While we expect that the change in the domain name base for 2024 will be below historic levels for the reasons we've discussed, we continue to believe our business fundamentals remain strong.

謝謝你，喬治。儘管出於我們所討論的原因，我們預計 2024 年域名基礎的變化將低於歷史水平，但我們仍然相信我們的業務基本面依然強勁。

As I mentioned earlier, we're introducing additional registrar marketing programs to target quality growth in the domain name base. These programs will become active during the second half of 2024. We expect these programs to begin improving registration trends during 2024 and to contribute to a return to growth in 2025.

正如我之前提到的，我們正在引入額外的註冊商行銷計劃，以實現網域庫的品質成長。這些計劃將在 2024 年下半年開始活躍。

Our goals to fulfill our stewardship mission of providing secure and reliable infrastructure services, managing our secure and reliable infrastructure services and our business responsibly, and efficiently returning capital to our shareholders remain unchanged and support our commitment to deliver strong financial results, including steady growth in revenue, operating income and EPS.

我們的目標是履行提供安全可靠的基礎設施服務、負責任地管理我們安全可靠的基礎設施服務和業務、高效地向股東返還資本的管理使命，這一目標保持不變，並支持我們實現強勁財務業績的承諾，包括穩定成長收入、營業收入和每股盈餘。

Thank you for your attention today. This concludes our prepared remarks. Now we'll open the call for your questions. Operator, we're ready for the first question.

感謝您今天的關注。我們準備好的演講到此結束。現在我們將開始電話詢問您的問題。接線員，我們準備好回答第一個問題了。

(Operator Instructions) Our first question comes from Rob Oliver with Baird.

（操作員說明）我們的第一個問題來自 Rob Oliver 和 Baird。

Great. Jim, first one is for you. Could you just put a finer point on some of those conditions that you discussed, which are weighing on U.S.-based, domestic-based .com growth within registrars?

偉大的。吉姆，第一個是給你的。您能否對您所討論的一些條件進行更詳細的闡述，這些條件正在影響註冊商內部的美國和國內 .com 的成長？

And as a follow-up to that, I don't know how much detail you can provide, but maybe if you could give us any color around what sorts of programs we can expect which could help drive that return to growth in '25. I know you guys clearly have a long operational history of working well with your registrars and would be curious to know -- get a little sense of what it is that you had in mind. And then I had a couple of follow-ups.

作為後續行動，我不知道你能提供多少細節，但也許你能給我們一些關於我們可以期待哪些類型的計劃的信息，這將有助於推動 25 年恢復增長。我知道你們顯然擁有與註冊商良好合作的悠久營運歷史，並且很想知道 - 了解一下你們的想法。然後我進行了一些後續行動。

Sure. Let's see, your first question was on the U.S. market. So basically, as we've discussed, what we see is the recent registrar focus on ARPU has led to some higher retail pricing and a reduction of their promotional offers. And of course, just as a reminder, we don't control the retail pricing, the registrars do. And when you combine that with decreased marketing and advertising outlays from the channel, we think this is a factor leading to less demand for products at present as well as some lower registration volumes and lower renewal rates.

當然。讓我們想想，你的第一個問題是關於美國市場的。因此，基本上，正如我們所討論的，我們看到最近註冊商對 ARPU 的關注導致了零售價格的上漲和促銷優惠的減少。當然，提醒一下，我們無法控制零售價格，而是註冊商可以控制。當你將這一點與通路行銷和廣告支出的減少結合起來時，我們認為這是導致目前產品需求減少以及註冊量下降和續約率下降的一個因素。

As to the marketing programs, obviously, I can't really go into a lot of detail, but I can say that in addition to the existing programs that we have, we've got some new ones coming to market. We have one currently launched that is focused on .net, and we plan to launch additional programs focused on .com in the second half of the year. So basically, what I can generally say about these programs and what's different, I think it helps to just understand that our channel is greatly varied.

至於行銷計劃，顯然，我無法詳細說明，但我可以說，除了我們現有的計劃外，我們還有一些新的計劃即將上市。我們目前推出了一個專注於 .net 的計劃，我們計劃在今年下半年推出更多專注於 .com 的計劃。所以基本上，我對這些節目的一般性評價以及不同之處，我認為這有助於了解我們的頻道千差萬別。

First of all, through COVID and afterwards, they've all gone through changes as we have, but we also have a channel that's evolved to include people like website builders and wholesale registrars who are selling to others. So our strategy is to broaden the options that's available to this sort of diverse group with diverse business models, geographic footprints, different installed bases.

首先，在新冠疫情期間及之後，他們都像我們一樣經歷了變化，但我們也有一個不斷發展的管道，包括網站建立者和批發註冊商等向其他人銷售產品的人。因此，我們的策略是為具有不同業務模式、地理足跡和不同安裝基礎的多元化群體提供更多選擇。

So by offering a broader selection, our goal is to increase engagement with our TLDs for the registrars and their customers. Clearly, one size doesn't fit all, like it has in the past many years ago that worked better. So these programs are really designed to address that diversity, and they also -- they're also designed with feedback that we've received from the community, and multiple options is clearly desirable. So that's the good generalization I can offer you.

因此，透過提供更廣泛的選擇，我們的目標是提高註冊商及其客戶與我們 TLD 的互動。顯然，一種尺寸並不適合所有情況，就像多年前效果更好的那樣。因此，這些計劃實際上是為了解決這種多樣性而設計的，而且它們也是根據我們從社區收到的回饋而設計的，多種選擇顯然是可取的。這就是我可以為您提供的很好的概括。

Great. That's helpful color. And then just as a corollary to that, George, for you. We're still running through the model here and obviously, the margin or profit coming down a little bit. That could be a result of the revenue, but is that -- is there -- are there any additional expenses in that second half associated with this program that would -- to drive -- to restart that jump in .com growth for '25? Any additional expenses captured in that change?

偉大的。這是有用的顏色。然後作為一個推論，喬治，對你來說。我們仍在運行該模型，顯然，利潤或利潤略有下降。這可能是收入的結果，但下半年是否有任何與該計劃相關的額外費用，這些費用將推動 25 年 .com 重新開始增長？該變更中是否包含任何額外費用？

Yes, Rob, thanks for the question. I would say not a necessarily direct expense associated with those programs. We do have expense already budgeted, and that is reflected in the current guidance that we're already putting out there for you.

是的，羅布，謝謝你的提問。我想說不一定是與這些計劃相關的直接費用。我們確實已經預算了費用，這反映在我們已經為您提供的當前指南中。

Okay. Great. Helpful. Last question for me, and then I'll turn it over to Ygal. On China, Jim, last quarter, you mentioned that the situation was, I think you used the word opaque, and that there was just so many moving parts, and you guys have been a strong partner and provider in China for so many years.

好的。偉大的。有幫助。我的最後一個問題，然後我會把它交給 Ygal。關於中國，吉姆，上個季度，您提到情況是，我認為您使用了“不透明”這個詞，而且有很多移動部件，而且你們多年來一直是中國強大的合作夥伴和供應商。

I'm curious how, if at all, that visibility has changed from 3 months ago. Is there a chance we see a bottom here? Has there been any evolution, in your view? And any color around what's happening in China would be helpful.

我很好奇這種可見度與 3 個月前相比有何變化（如果有的話）。我們有機會看到底部嗎？您認為有什麼演變嗎？任何有關中國正在發生的事情的色彩都會有所幫助。

Sure. Well, I guess, first of all, I would just remind you that in my prepared remarks, at least I mentioned that we do expect China to continue to be a drag through 2024. So that's the first thing. In terms of better visibility, less opacity. I'm -- not really. There's nothing really substantial that I think I can point to that gives us better insights. I just think that, that is a different market for all the reasons that we typically mention.

當然。嗯，我想，首先，我想提醒大家，在我準備好的發言中，至少我提到我們確實預計中國將在 2024 年繼續成為拖累因素。就更好的可見性而言，更少的不透明度。我——不是真的。我認為沒有什麼真正實質的東西可以為我們帶來更好的見解。我只是認為，由於我們通常提到的所有原因，這是一個不同的市場。

The regulatory environment is a little bit different. They are much more adversely affected in terms of cost of goods, not just by price increases but also by the cost of buying dollars to pay for those domains. So they've -- that market is just sort of feeling a lot of different impacts. Specific detailed insights into it, no.

監管環境略有不同。它們在商品成本方面受到的不利影響要大得多，不僅是價格上漲，還包括購買美元來支付這些網域的成本。所以他們——那個市場只是感受到了很多不同的影響。具體詳細的了解一下吧，沒有。

I think our view of China is that, of course, at about 5% of our overall domain name base and moving downward, the negative impacts will, of course, ease as we move forward. That's one factor that will help us through 2024. The other, obviously, is 2 things, really. It's our programs that we're targeting at the registrars to help them focus on new customer acquisition and the fact that we think that their ARPU is sort of cyclical. We've seen that before.

我認為我們對中國的看法是，當然，隨著我們的發展，負面影響當然會減輕，占我們整體域名基數的 5% 左右，並且正在下降。這是將幫助我們度過 2024 年的一個因素。我們的計劃針對的是註冊商，幫助他們專注於新客戶的獲取以及我們認為他們的 ARPU 具有週期性的事實。我們以前見過這樣的情況。

But specifically to China, I -- certainly not in the last 3 months, there's nothing I can point to that says we have a clear and better understanding. I think it's just simply affected as being a market that's more regulated and more sensitive. There are probably other factors that we don't fully understand. We study it closely, but that's the best answer I can give you right now.

但具體到中國，我——當然不是在過去的三個月裡，我無法指出任何事情表明我們有了清晰和更好的理解。我認為它只是因為成為一個監管更嚴格、更敏感的市場而受到影響。可能還有其他我們不完全理解的因素。我們仔細研究它，但這是我現在能給你的最佳答案。

And we'll take our last question from Ygal Arounian with Citi.

我們將回答花旗銀行 Ygal Arounian 提出的最後一個問題。

If we could dig into the registrars and the focus on pricing and the impact that's having just a little bit more, is there anything within the pricing that's specific to .com that you're seeing, meaning if we look at kind of total domains beyond .com, the softness isn't necessarily as pronounced? So what are the dynamics? Why is it having a bigger impact on .com versus everything? Are they promoting some of the other TLDs more than they are .com? Just to understand that a little bit better.

如果我們可以深入了解註冊商、對定價的關注以及所產生的影響，您所看到的定價中是否有任何特定於 .com 的內容，這意味著如果我們考慮超出範圍的總域名.com，柔軟度不一定那麼明顯？那麼動態是什麼呢？為什麼它對 .com 的影響比其他一切都更大？他們是否對其他一些頂級域名 (TLD) 的推廣力度超過了 .com？只是為了更好地理解這一點。

Well, it's -- Ygal, it's Jim. It's certainly true that one thing, I guess maybe I could have added, I didn't, so I'm glad you asked this question, to Rob's last question about China is that, that's where we're seeing other TLDs filling some of the demand there. These are TLDs that are priced extremely low. We're talking about sub-$1, in many cases. So that's certainly a factor.

嗯，是－－伊加爾，是吉姆。確實有一件事，我想也許我可以補充，但我沒有，所以我很高興你問這個問題，對於 Rob 關於中國的最後一個問題是，這就是我們看到其他 TLD 填補了一些那裡的需求。這些 TLD 的價格極低。在很多情況下，我們談論的是低於 1 美元的價格。所以這肯定是一個因素。

Again, we don't control the retail pricing. The channel is pricing our products .com, .net, sort of in a broad range. Some are pricing renewals above $20. Others are selling registrations and renewals much closer to the wholesale price. It varies. I think that focus on ARPU is probably a primary -- a factor in the U.S. along with the reduced spend on marketing.

再次強調，我們不控制零售價格。該通路在 .com、.net 上為我們的產品定價，範圍很廣。有些續訂價格超過 20 美元。其他人則以更接近批發價的價格出售註冊和續約。它有所不同。我認為對 ARPU 的關注可能是一個主要因素——在美國，以及行銷支出的減少也是一個因素。

And I guess if I wanted to point to anything that we maybe could have done sooner or recognized a little better would be adapting these marketing programs sooner, but we're getting them into market now. So I think that will address some of the issues.

我想，如果我想指出我們可能可以更快地完成或認識到更好的任何事情，那就是更快地調整這些行銷計劃，但我們現在正在將它們推向市場。所以我認為這將解決一些問題。

But I think the place where you're seeing others make a huge dent is definitely in China. There are literally sub-dollar TLDs that are being sold there that are experiencing some growth. That's gone on and off over the years with different TLDs spiking way up and way down. You can see that in our DNIB report.

但我認為你看到其他人取得巨大成就的地方肯定是在中國。那裡出售的一些低於美元的頂級域名 (TLD) 正在經歷一些增長。多年來，這種情況時斷時續，不同的 TLD 不斷上升和下降。您可以在我們的 DNIB 報告中看到這一點。

Ygal, it's George. We don't have the flexibility -- as much flexibility, I would say, as new gTLDs in certain markets. So we treat all our customers the same. And so sometimes when we have differences in exchange rates overseas, that can also be a factor in demand.

伊加爾，是喬治。我想說，我們沒有像某些市場中的新 gTLD 那樣的彈性。因此，我們對所有客戶一視同仁。因此，有時當我們在海外存在匯率差異時，這也可能是需求的因素。

Got it. So just a follow-up on that, then. With pricing focus with Amendment 35 and the structure of the current contracts, do you think that there's maybe less pricing power in the domain? I mean I would think still not retail $20 a year. It's not the highest consideration purchase. Does that give you any pause or thoughts on how you think about pricing at a wholesale level? I know you don't control the retail level, but how does that flow through on how you think about the wholesale level?

知道了。那麼，這只是後續行動。鑑於第 35 號修正案的定價重點以及目前合約的結構，您是否認為該領域的定價能力可能會減弱？我的意思是，我認為每年零售額仍然不會達到 20 美元。這不是最高考慮的購買。這是否讓您對批發定價有任何猶豫或思考？我知道您無法控制零售層面，但這如何影響您對批發層面的看法？

Well, I think the registrars have to make their own decisions on pricing. I think some of the higher renewal prices are, in my opinion, a testament to the stickiness and the high quality of the com product and that the largest segment we have is people who brand themselves on it, and those enjoy particularly high renewal rates. So I think it's just easy, if you have a product, a subscription product, that has strong stickiness like this, a functional TLD that's supported with a 26-year uptime record and all the other benefits that come with it. I think that's not particularly surprising.

嗯，我認為註冊服務機構必須自己做出定價決定。我認為，在我看來，一些較高的續訂價格證明了com產品的粘性和高質量，我們擁有的最大的細分市場是那些在其上打造自己品牌的人，並且這些人享有特別高的續訂率。所以我認為這很簡單，如果你有一個產品，一個訂閱產品，像這樣具有很強的粘性，一個功能性頂級域名，有 26 年的正常運行時間記錄以及隨之而來的所有其他好處。我認為這並不特別令人驚訝。

I'd attribute it more to the cyclical nature of ARPU. And new customer acquisition. And some of our programs are designed to accommodate the different business models that will get them more focused on new customer acquisition.

我將其更多地歸因於 ARPU 的周期性。以及新客戶的獲取。我們的一些計劃旨在適應不同的業務模式，使他們更加專注於新客戶的獲取。

Okay. Helpful. And last one for me. Maybe -- we get a lot of questions as we get closer to the date on the .com renewal, and I'm assuming there's nothing new per se to say about it, but maybe just help us walk through the time line of the renewal. What are some of the key timing things to think about or what the time line might look like?

好的。有幫助。最後一張給我。也許——隨著 .com 續約日期的臨近，我們會收到很多問題，我假設這本身沒有什麼新內容可說，但也許只是幫助我們了解續約的時間線。需要考慮哪些關鍵的時間安排問題或時間線可能是什麼樣的？

And understanding, I think you've been through the idea that you have, the presumptive right of renewal here, and how the contract works is you're keeping the details the same, but any risks or other things for investors to think about as we get closer to that renewal date?

我認為您已經了解了您擁有的想法，這裡的推定續約權，以及合約的運作方式是您保持細節相同，但投資者需要考慮的任何風險或其他事項我們離更新日期越來越近了嗎？

I don't know what you mean by risk. I mean the contract has a presumptive right of renewal, and as long as we're meeting all SLAs, the contract says it shall be renewed. But the contract is not due for actual. The deadline date is the end of November, so it's a ways out. But we are now engaged with ICANN and are in the process of exchanging drafts to the com renewal. So it's early in that process, and com is, like I said, not due until the end of November.

我不知道你說的風險是什麼意思。我的意思是，合約具有推定續約權，只要我們滿足所有 SLA，合約就規定應續約。但合約尚未到期。截止日期是11月底，所以這是一個出路。但我們現在正在與 ICANN 合作，並正在交換 com 更新草案。所以現在還處於該過程的早期階段，正如我所說，com 直到 11 月底才會到期。

And the presumptive right of renewal, of course, was used with .net, and we had a -- we anticipate an on-time renewal as we had last year for .net. I think these -- ICANN has this in all of their thousands of gTLD contracts. There's a rolling constant exercise of this presumptive right of renewal, and we expect com, just like net and just like all the other gTLDs, to renew.

當然，推定續訂權是與 .net 一起使用的，我們預計會像去年對 .net 所做的那樣按時續訂。我認為 ICANN 在其數千份通用頂級域名 (gTLD) 合約中都體現了這一點。這種推定續展權會不斷滾動行使，我們預計 com 會像 net 和所有其他 gTLD 一樣進行續展。

And we'll take an additional question from Rob Oliver with Baird.

我們將回答 Rob Oliver 和 Baird 提出的附加問題。

Great. Jim, last quarter, you got a question on .web, so I think I'll ask it again. I'm not sure that there's been -- I know this doesn't seem like there's been any official update, but anything you guys have heard or seen or anything we should be aware of that constitutes any change? And could you just provide us your updated perspective on what you see as the possible time line or evolution of dot web here?

偉大的。 Jim，上個季度，您在 .web 上提出了一個問題，所以我想我會再問一次。我不確定是否有——我知道這似乎沒有任何官方更新，但是你們聽到或看到的任何東西或我們應該意識到的任何東西構成了任何變化？您能否向我們提供您對點網可能的時間軸或演變的最新看法？

Thanks, Rob. Good question. I guess I would call it an update. You said movement. I guess this could qualify as that as well. So the one update I have is that Verisign and NDC have just filed an application to participate in this second IRP like we did the first one, as you know.

謝謝，羅布。好問題。我想我會稱之為更新。你說的是運動。我想這也符合這個條件。所以我得到的一個更新是，Verisign 和 NDC 剛剛提交了參與第二個 IRP 的申請，正如你所知，就像我們所做的第一個 IRP 一樣。

We had that -- for context, we had this process where last April, ICANN's Board of Directors voted without objection to delegate .web to NDC. Altanovo then filed the second IRP complaint against ICANN. This second IRP is looking for the same relief to award .web to Altanovo that the first IRP panel rejected twice, sanctioning them the second time, and it's exactly what ICANN's Board committee and full Board also rejected last April.

我們有這樣的背景，去年 4 月，ICANN 董事會投票無異議地將 .web 委託給 NDC，我們就制定了這個流程。阿爾塔諾沃隨後對 ICANN 提出了第二次 IRP 投訴。第二次 IRP 正在尋求同樣的救濟措施，將 .web 授予 Altanovo，第一次 IRP 小組兩次拒絕，第二次批准他們，而這正是 ICANN 董事會委員會和全體董事會去年 4 月也拒絕的。

So we continue to believe that ICANN and the IRP panel should dispense as quickly as possible with what we believe to be baseless claims against ICANN. And by the way, Altanovo has no existing registry business, and as far as we can tell, whoever actually owns and is funding this litigation remains a secret. So, the update is that we filed an application, and we'll see where the second IRP goes.

因此，我們仍然認為 ICANN 和 IRP 專家小組應盡快撤銷我們認為 ICANN 的毫無根據的指控。順便說一句，阿爾塔諾沃沒有現有的註冊業務，據我們所知，誰真正擁有並資助這場訴訟仍然是個秘密。因此，更新是我們提交了申請，我們將看到第二個 IRP 的去向。

Great. That's helpful. I'll have to go back to the record to look at that again. But very helpful.

偉大的。這很有幫助。我得回去再看一下記錄。但非常有幫助。

And that does conclude the question-and-answer session. I'll now turn the conference back over to Mr. David Atchley for final comments.

問答環節到此結束。現在我將把會議轉回給 David Atchley 先生徵求最後意見。

Thank you, operator. Please call the Investor Relations department with any follow-up questions from this call. Thank you for your participation. This concludes our call. Have a good evening.

謝謝你，接線生。如果本次電話會議有任何後續問題，請致電投資者關係部門。感謝您的參與。我們的通話到此結束。祝你晚上愉快。

Thank you. That does conclude today's conference. We do thank you for your participation. Have an excellent day.

謝謝。今天的會議到此結束。我們非常感謝您的參與。祝你有美好的一天。