Revenue Analysis
Reviewing Total and Operating Revenue, there is a steady growth observed over the past three years. The total revenue increased from $364.4 million in Q1 2023 to $384.3 million in Q1 2024. Concurrently, the Gross Profit also showed an increase, moving from $314.5 million in Q1 2023 to $335.2 million in Q1 2024, indicating an increasing efficiency in generating profit from revenues.
Cost Management
The Cost of Revenue has been relatively stable, demonstrating careful cost management. Specifically, the cost of revenue was $49.9 million in Q1 2023 and slightly decreased to $49.1 million in Q1 2024. Operating Expenses have seen minor fluctuations but generally remained consistent with a slight increase from $73.2 million in Q1 2023 to $76.3 million in Q1 2024. Total Expenses also increased from $123.1 million in Q1 2023 to $125.4 million in Q1 2024.
Profitability Analysis
EBITDA showed growth, indicating improving profitability, with an increase from $264.2 million in Q1 2023 to $282.6 million in Q1 2024. Similarly, Operating Income grew from $241.3 million in the initial period to $258.9 million in the latest period. Pretax Income followed this trend, showcasing an incremental rise from $233.8 million to $254 million. Net Income, however, displayed some volatility, peaking at $264.7 million in Q4 2023 before decreasing to $194.1 million by Q1 2024.
Cash Flow Indicators
Reconciled Depreciation amounts are relatively consistent, ranging from $11.6 million to $9.8 million across the observed periods. The Interest Expense remained fixed at $18.8 million, demonstrating no variation which could suggest stable financing costs.
Taxation
The effective Tax Rate shows adjustments across the periods, starting at 23.5672% in Q1 2023 and adjusting to 23.5827% by Q1 2024. Tax Provisions increased significantly from $55.1 million in Q1 2023 to $59.9 million in Q1 2024, indicating a higher tax liability in line with higher pre-tax earnings. There were No Tax Effects from Unusual Items, suggesting straightforward tax years without exceptional events.
Shareholder Metrics
Diluted and Basic EPS saw a peak of 2.6 in Q4 2023 but decreased to 1.92 by Q1 2024. Average Shares decreased slightly from 105 million in Q1 2023 to around 100.9 million in Q1 2024, which could indicate share buybacks or other reductions. Net Income Available to Common Stockholders has tracked net income precisely, highlighting stable allocations to shareholders.
Conclusion
Overall, VRSN has demonstrated growth in revenue and profitability metrics over the assessed period, although net income has shown some recent decline. The company efficiently manages costs and maintains stability in cash flow-related expenses such as interest and depreciation. Shareholder earnings per share have recently diminished, which warrants an eye on future earnings reports for potential trends or changes.