[Comments-com-amendment-3-03jan20] Look at Verisign’s REMARABLE financials – which can only be achieved from a MONOPOLY that holds a perpetual right to operate .COM forever!

[Don Smith]

Base of .com domain names:

2009 -- 86.0 million
2010 -- 93.7 million
2011 -- 101.6 million
2012 -- 108.5 million
2013 -- 114.3 million
2014 -- 119.0 million
2015 -- 126.6 million
2016 -- 131.3 million
2017 -- 135.0 million
2018 -- 142.0 million
2019 -- 145.4 million


Verisign's price it charges per .com domain per year (keep in mind historically, Verisign has increased its prices at every opportunity permitted):

2009 - $6.42
2010 - $6.68
2011 - $7.34
2012 - $7.85
2013 - $7.85
2014 - $7.85
2015 - $7.85
2016 - $7.85
2017 - $7.85
2018 - $7.85
2019 - $7.85


Verisign's revenues:

2009 - $615,947,000
2010 - $680,578,000
2011 - $771,978,000
2012 - $873,592,000
2013 - $965,087,000
2014 - $1,010,117,000
2015 - $1,059,366,000
2016 - $1,142,167,000
2017 - $1,165,095,000
2018 - $1,214,969,000
2019 - $1,231,661,000


Verisign's costs to operate the registry:

2009 -- ($455,989,000)
2010 -- ($448,295,000)
2011 -- ($442,589,000)
2012 -- ($416,265,000)
2013 -- ($436,855,000)
2014 -- ($445,690,000)
2015 -- ($453,420,000)
2016 -- ($455,595,000)
2017 -- ($457,373,000)
2018 -- ($447,577,000)
2019 -- ($425,534,000)


While wholesale .com prices have been capped at $7.85 since 2012 for consumer protection, Verisign's operating income has soared:

2009 - $159,958,000
2010 - $232,283,000
2011 - $329,389,000
2012 - $457,327,000
2013 - $528,232,000
2014 - $564,427,000
2015 - $605,946,000
2016 - $686,572,000
2017 - $707,722,000
2018 - $767,392,000
2019 - $806,127,000


Verisign's Net Income:

2009 - $87,931,000
2010 - $58,152,000
2011 - $141,141,000
2012 - $322,728,000
2013 - $323,953,000
2014 - $355,347,000
2015 - $374,241,000
2016 - $441,185,000
2017 - $457,760,000
2018 - $582,619,000
2019 - $612,489,000


Verisign employees fewer employees than ever before:

2009 - 1,100
2010 - 1,048
2011 - 1,009
2012 - 1,099
2013 - 1,079
2014 - 1,061
2015 - 1,019
2016 - 990
2017 - 952
2018 - 900
2019 - 872


Operating Margin:

2009 -- 26.0%
2010 -- 34.1%
2011 -- 42.7%
2012 -- 52.4%
2013 -- 54.7%
2014 -- 55.9%
2015 -- 57.2%
2016 -- 60.1%
2017 -- 60.7%
2018 -- 63.2%
2019 -- 65.5%


With 69.6% non-GAAP operating margins and 65.5% GAAP operating margin in 2019 -- Verisign's financials are remarkable.  Why is any rate hike justified?

Verisign is realizing the benefits of economies of scale on a growing base of domain names.  On top of a perpetual contract to operate the .com registry -- which excludes all forms of competition at the registry level.

Competition ultimately benefits consumers -- and when ICANN is going in the opposite direction and allowing Verisign to increase its prices by 31% over the next 4 years -- it will result in a windfall of additional profits for Verisign -- without any justification.

ICANN - what is your justification for price increases?

-D