VeriSign, Inc. (VRSN) Q3 2026 Earnings Call Transcript

Operator: Good day, everyone. Welcome to VeriSign's Third Quarter 26 Earnings Call. Today's conference is being recorded. Recording of this call is not permitted unless preauthorized. At this time, I would like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir.

David Atchley: Thank you, operator. Welcome to VeriSign's third quarter 2026 earnings call. Joining me are Jim Bidzos, Executive Chairman, President and CEO and John D. Calys, 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. 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 reports on Form 10 k, And 10 Q. VeriSign does not plan to update financial performance or guidance during the quarter. The financial results in today's call and the matters we will be discussing today include GAAP results and free cash flow. A non GAAP measure used by VeriSign. 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. Jim and John 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.

D. James Bidzos: Thank you, David. Afternoon to everyone, and thank you for joining us. We are pleased to report that VeriSign delivered strong results in the third quarter of 2026, both operationally and financially. The combined.com and .net domain name base now totals 183 million names, up 6.1% year over year with a record 13.1 million new registrations processed during the third quarter. On the financial side, revenue was up 5.7% year over year, We have returned $1.14 billion to our shareholders in the last 12 months through share repurchases and dividends. As announced in today's earnings release, VeriSign's Board of Directors approved a cash dividend of 81¢ per share of VeriSign's outstanding common stock shareholders of record as of the close of business on November 17, 2026 payable on November 24, 2026. VeriSign intends to continue to pay a cash dividend on a quarterly basis. At quarter end, $1.36 billion remained authorized for share repurchases. VeriSign's performance in the third quarter shows continued robust demand for domain names. During the quarter, the domain name base for .com and .net grew by 3.4 million from the prior quarter end. New registrations for the third quarter totaled 13.1 million. This compares with 12.7 million new registrations last quarter and 10.6 million for the third quarter of last year. The renewal rate for the third quarter of 26 is expected to be 74.3% compared to 75.4% a year ago. The primary driver of this year over year decrease in renewal rates relates to the mix of first time and previously renewed names with a higher percentage of first time renewing names due to last year's strength. In new registrations. In recent quarters, The US and EMEA were the regions in which we saw the strongest growth during the third quarter. The factors driving the solid domain name based trends of the past several quarters further accelerated during the third quarter. Registrars have successfully engaged with our marketing programs and are focused on customer acquisition, plus AI tools are making content and website creation faster and easier. The ongoing strength and new registrations attest to the vital role of the domain names play in discovering content and establishing digital credibility. With the trends we have observed in the first 3 quarters of 26, and our expectations for the rest of the year, we are increasing and narrowing our guidance for domain name based growth to be between 6.5% and 7% for 2026. As a reminder, you can monitor the progression of the domain name base on our website which is updated daily. As we stated last quarter, .web is delegated into the root zone, and we are actively preparing for its launch. We have been communicating to our registrars that the required 30 day sunrise period is planned to begin in mid December. In mid January, we are planning to begin a limited registration period or LRP, which could run into early April 27. At that point, we expect to open .web for general availability. During the LRP, most registrants of a .com domain name will have an opportunity to register an exact match .web domain name. We are in the process of finalizing pricing we will be communicating our pricing plans to registrars over the next few weeks. As we shared last quarter, the .web registry agreement allows for pricing flexibility including premium names, which we intend to use. Agreement also gives us more flexibility in marketing and engaging with our registrars as we have in .com and .net. We are looking forward to launching .web and adding it to our portfolio of trusted domain names alongside .com and .net Now I would like to turn the call over to John. I will return when John has completed his financial report with closing remarks, including more information on VeriSign Informed, our high assurance validation service we announced earlier this month. John?

John D. Calys: Thank you, Jim, and good morning, or good afternoon, everybody. For the quarter ended September 30, 2026, the company generated revenue of $443 million up 5.7% from the same quarter a year ago. Operating expense in Q3 2026 totaled $147 million which compared to $138 million last quarter and $135 million for the third quarter a year ago. During third quarter of 2026, the company recognized a pretax operating loss of $7.5 million related to certain assets held for sale which accounted for the majority of the sequential increase in operating expenses. Operating income totaled $296 million up $12 million or 4.2% from the previous year and flat sequentially. Net income for the third quarter totaled $213 million compared to $217 million last quarter and $213 million for the same quarter a year ago. This resulted in diluted earnings per share of $2.35 for the third quarter this year compared to $2.38 last quarter and $2.27 for third quarter last year. The previously mentioned loss to adjust the carrying value of certain assets held for sale decreased EPS by $0.06 in the current period. Operating cash flow for the third quarter of 2026 was $268 million, and free cash flow was $261 million. Compared with $308 million $303 million, respectively, in the year ago quarter. The year over year decrease is primarily related to higher cash taxes and payments to employees and vendors partially offset by higher cash collected from customers in the third quarter this year. Our financial and liquidity position remains stable with $476 million in cash, cash equivalents, and marketable securities at the end of the quarter. I will now discuss our updated full year 2026 guidance. Revenue is now expected to be between $1.755 billion and $1.760 billion. Operating income is now expected to be between $1.188 billion and $1.192 billion. Which reflects the 7.5 million expense booked during the third quarter as mentioned before. Interest expense and nonoperating income net is still expected to be an expense between $59 and $65 million, Capital expenditures are still expected to be between $55 and $65 million. The GAAP effective tax rate is still expected to be between 22% and 25%. Now I will turn the call back to Jim for his closing remarks.

D. James Bidzos: Thank you, John. We are pleased with the results of our core DNS business in Q3. We believe that our record of more than 29 years of uninterrupted .com and .net DNS global availability contributes to our domain growth by establishing and maintaining .com and .net as highly reliable and trusted TLDs now processing approximately 800 billion DNS queries per day on average, returning cryptographically protected answers within milliseconds. With this unparalleled record of availability, reliability, and performance, we use the term high assurance to describe our services. Very soon, .web will join our family of trusted TLDs, and it will allow us to offer more choice to customers, and they will benefit from VeriSign's rigorous attention to availability and reliability. We are very pleased to be on track to bring .web to market in just a few months. As many of you know, we have recently announced another new product. On October 5th, we announced VeriSign Informed, or VI. A security service to support the use of critically and widely used digital credentials. There are many use cases for these credentials. Authorized network access by users in corporate networks, secure email, secure software distribution, including app updates, and on billions of financial chip cards worldwide. Web certificates are used to establish a secure link when connecting to a website. Like any credential, there are many reasons certificates may need to be revoked before their expiration date. Gaps in that process will result in stale trust. At its core, VI answers the question, has this certificate been revoked? it is easy to see how vital the answer to this question is in today's world. BI allows trust decisions to be made with the most current information at global scale and runs on our high assurance infrastructure built with the same know how and proprietary high performance architecture that enables VeriSign's DNS to provide cryptographically protected or responses in milliseconds to billions of DNS queries per day. Our microsite, VeriSignInformed.com, contains several blogs and tech reports introducing VI, offering descriptions and measurements in risk reduction that BI can provide. 3 points I believe are of interest to investors. First, VI is fully operational in our infrastructure today. All financial data from 2024 up to and including our guidance through 2026 includes all VI expense. Second, pricing is being finalized now and should be completed by year end. With production service delivery expected during the first half of 2027. Third, BI can be provisioned and operated like domains. Through our existing registrar channel, through existing PKI service providers, and other application vendors or even through a self-service facility. Provisioning and delivering the service are nearly identical to those of our core offerings. I will close by saying that we have always seen ourselves as a critical infrastructure service provider that prioritizes security, stability, and resiliency. That focus has delivered profitable growth for the company and our focus will not change. We have established a record of disciplined capital allocation over many years that has delivered a compounding benefit through share repurchases, now diversified with a dividend. We achieved our goal of earning investment grade status in 2021 and we intend to maintain it. We believe our new services carefully selected for alignment with our risk tolerance and core competencies, represent a carefully measured way to continue to deliver for both our customers and shareholders. Thanks for your attention today. This concludes our prepared remarks. Now we will open the call for your questions. Operator, we are ready for the first question.

Operator: Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star-1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is off to allow your signal to reach our equipment. Once your question has been stated, We will now take our first question from Robert Oliver with Baird.

Rob Oliver: Great. Good afternoon. First 1, Jim, it is a 2-parter for you. The gross domain ads continue to be stunningly strong. up 24% year over year. You guys added another over 13 million this quarter. So I was wondering if you could just touch on and remind us, or update us on, what you are seeing in terms of the drivers of that I know clearly AI, but are you also seeing digital providence or other things like that playing into that And the follow-up question I have is, regarding trends you are seeing in first year renewals. You guys have been clear with us about the fact that renewal rate would be impacted by, this large bolus of domain. New domains that you have but it sounds as if those first year renewals have been coming in pretty strong. So I wanted to understand what you are seeing in terms of those. The stickiness the quality of those first year renewal trends. Thank you.

D. James Bidzos: Alright. Well, let me address your first question. First. So some of the drivers that we are seeing in new registrations which is, as you pointed out, at 13.1 million during the quarter, is a record for us. Q2 was a record for us. Key drivers, that we see are, what I referred to before as a synergistic convergence of demand for domain names from businesses, new business starts, but also our marketing programs and, an AI tailwind, and we are hearing from some registrars that AI is a factor. AI, clearly makes it easier to find a domain name, develop a website, and maintain a website. We are seeing that content creators want their content bound by AI, and a domain name is 1 of the primary ways to have that content available. I think what we have been saying historically for a number of years that, the, well governed, DNS is going to continue its value. The decades of investment in infrastructure like ours. Governance by ICANN, strengthening and ensuring that a domain name is a unique, trusted, secure, global identifier, I think, is really demonstrating its value in a world where people still get online for the fundamental purpose of being found and conducting commerce. And I think all that just really works together to drive that growth. I think your second question John, I will let you address that about renewal rates.

John D. Calys: Yes. Good afternoon, Robert. Now, through the third quarter, what we have seen with our first timer renewal rates is they have remained fairly steady in the mid 40% range. And the previously renewed rates have been the same. They have remained fairly steady in the mid 80% range. So we have not seen a great deal of movement either direction in those. But as Jim mentioned, you know, with the strong new registrations, the mix of first time renewing names is growing versus in proportion to the total base. And that does result just from math, in the renewal rate going down. We are going to be watching very closely next year because this year's registrations have been very strong, and we will be looking to see if there is any trends in the first time renewal rates. But nothing of significance to report to you right now.

Rob Oliver: Great. Thanks, John. Jim, I just had 1 follow-up for you, and then I will cede the floor. I would love to get your take on just the timing of .web it strikes me you guys might be in a unique position here relative to the timing of, this, you know, pretty strong generic TLD which is coming out ahead, and by a period of time of many of the new TLDs that will come out as part of the auction. So wanted to get a sense from you of, if it is--if that is right, if that early access to the market is a benefit to you guys, and any other way you can help us, you know, think about that timing or frame that opportunity. Thank you.

D. James Bidzos: Yes. Thanks, Robert. Well, certainly, you stated made some fact statements about the timing. that is true. I think the strength of .web is it is always been. it is a short generic, relevant, TLD operating in our infrastructure, our high assurance infrastructure. I am kind of looking beyond the short term period. I do understand, and I do agree there is an opportunity. There will be another round, but it is a ways down the road. And there is an opportunity here with .web. But I think the strength of running on our reliable infrastructure with its track record providing more choice to our customers with a short relevant TLD is gonna be a value proposition that will continue beyond this opportunity that we may have in the short term. I think the flexibility that we have in marketing and all of the things that come with the pure generic TLD that is not regulated the way .com and .net are all those things, play well. I think the enduring value of a domain name plays well. Certainly, the timing is good. We waited a long time. It would have been nice to have it sooner, but, I think there is always room for a secure, reliable domain name that gives people more choice, and that is how we view it. We see .web as another member of the trusted family of .com and .net that is provided 29 years of 100% availability And I think that value is going to be continue to be enduring, the longer that record gets. Great. Thank you both very much.

Operator: Thank you. Thank you. We will take our next question from Ygal Arounian with Wedbush.

Ygal Arounian: Maybe just follow-up first on Robert's first question. You are adding going to be adding about 11 million domains this year. I mean, that is, I think, going back as high as it is been in decades, if I am not mistaken. And I know it is being driven by, multiple factors. But if I can get you to look forward a little bit, Jim, into next year, like, what gets this to slow down? It feels like AI trends and Agentic in particular, that starts to pick up can especially when you guys point to things like queries and the rate of change that you are seeing in query growth. It feels like this strength has a lot of runway and just want to maybe get some of your thoughts as we look forward into next year. Without getting guidance.

D. James Bidzos: Sure. I guess I would point to what we see as the very long trend lines here. First of all, there is just simply a growing, the economy is built on a digital platform that continues to grow. So there is there is a dish. there is constant new adoption of delivering services digitally. There is greater reliance on digital services cloud service providers, new entrants offering new services, more businesses converting to online, the efficiencies that with AI is a relatively recent driver and certainly contributing to that as well. So I see the combination of that long trend line of just simple growth and adoption of online services that the ongoing move towards more digital efficient services AI is a boost and the enduring value of a domain name and the very mature and trusted because of all the security that is been built in over the last decades in the DNS Our infrastructure, I think, is an important component of that. I just see those long trend lines, and I do not think in terms of quarters of years. Obviously, what we do is we report quarterly and annually. But, I think those trend lines run much longer, and I think they bode well. I think also, our carefully assessed and measured addition of VeriSign Inform to our offerings, the way it leverages our infrastructure, I think the long trend line favors that as well. New advanced services, Agentic AI, etcetera, I think we are already seeing evidence that, there are security challenges that come. We think offering tools that can close security gaps are very important. So we tend to take the longer term view, but I think you could certainly, looking out a year, I can see all of those factors coming into play. Registrars are very engaged. They are seeking more customers. There are a lot of factors driving their business as well. So yeah, there is quite a bit of synergy in all of the factors that are driving this growth. And there may be ups and downs along the way. There always are, but, I think the long trend line is really strong, and that is what we keep our eye on.

Ygal Arounian: Okay. Great. Very helpful there. And I want to ask maybe if we could elaborate a little bit more on VeriSign Informed. I guess, first, can you help us understand why VeriSign has the right to win in this business versus, other cybersecurity providers? Why are enterprises or consumers choosing VeriSign and not, Maybe particularly on the enterprise side, but on both on what you can hit And then I know you talked about pricing, finalizing pricing plans. If you could help investors think through what the maybe not the actual price, but the structure. What does pricing look like? How should we be thinking about not, again, not the actual number, but what it means in general and how to think about it. Any help there would be great. Thank you.

D. James Bidzos: Sure. Well, let me take those in reverse order. I think with respect to pricing we are just a few months away from having more to say about that, which I think will help people assess the opportunity. As I mentioned, we think this is a leveraged, carefully assessed core offering that, where the real the real synergy and what I think will make, VeriSign Informed strong back to your. The first part of your question, why VeriSign Informed? I think it is really-- first of all, OCSP, the online certificate status protocol, is difficult to do as quickly as we do DNS and operating in our infrastructure. We are going to offer that level of performance And the key distinction here is that, there are a couple of things we can do. Number 1 is that at the time of making the trust decision, and here's another important aspect. Whether that is a person to machine, interaction or whether it is a machine to machine interaction, which it clearly will be with Agentic AI becoming, prevalent, performance, speed, and reliability matter. I think all of those aspects of our high assurance infrastructure combined with this service which closes these gaps if you do not do credential revocation, certificate revocation, quickly, those gaps can be exploited. I think if we are learning anything, at this point, we can see that AI is extremely good at, identifying vulnerabilities, and those usually are followed up very quickly with AI enabled attack chains and closing all vulnerability windows, as much as possible is really important and I think going to increase in importance. And I think we just have a solid offering. So with respect to why VeriSign informed, I would say it offers the sort of, and I think if you look at some of our blogs I would say demonstrable reduction in risk when making trust decisions that are better informed. And I think that value proposition will be of a great interest to a lot of folks out there. We are seeing it already in the financial industry. I think that will that will grow in our opinion. Alright. Great. Thank you so much.

Operator: Thank you. Thank you. We will take our next question from Jamesmichael Sherman-Lewis with Citi.

Jamesmichael Sherman-Lewis: Hi there. Thank you for taking my questions. 2 here, if I may. First of all, with the .com price increase coming into effect, any early color here on registrar pricing actions? Or customer renewal rate benefits that you are seeing that could be mitigating the first time renewal headwinds that you talked about earlier?

John D. Calys: Hi, Jamesmichael. This is John. You know, we have been watching closely what our registrars are doing with pricing. And at least for the last you know, 3 months since,. Or since we have announced the price increase. I think that was, last April. Our. Yeah. For.com. Yep. You know, we have not seen a significant increase in pricing on new registrations or renewals. You know, our analysis shows it is the price increases during that time period are you know, in the neighborhood of 1% or even less. So we have not seen a lot of move. We. In the past, when we have done price increases, we have seen some registrars in advance of the effective date raise prices or in conjunction with the effective date, But so far, that is something we have not seen. A lot of, but we do continue to keep our eye on that.

D. James Bidzos: Perfect. I guess I would I would just add. Oh, sorry. Go ahead. May interrupt. No. Go ahead. I was just gonna add to that. The price increase is $0.71, and I think given that we do not control the retail price, of course, that is set by the registrars. And it is it is a modest price increase that, they can certainly, absorb and adjust accordingly. But, the impact on the retail channel, where prices are unregulated is different. Than our pricing. We did provide as required 6 months notice of the price increase, so it is not a surprise.

Jamesmichael Sherman-Lewis: Yep. Understood. Follow-up here on the ICANN new gTLD rounds. We saw, like, .pkias news, but there are other TLDs out there that are pretty key, including .agent. So curious if you could elaborate on your strategic approach overall to new gTLD acquisition. Thank you.

D. James Bidzos: Sorry, Jamesmichael. That was a specific question about. PKI. Yeah. Dot PKI. PKI. Alright. Your strategic approach to new gTLDs. Well, PKI, of course, stands for public key infrastructure. This is something that actually, VeriSign's parent company, RSA, brought to market back in the '80s and '90s. We wrote standards. We enabled the first browsers with a full PKI suite that allowed e commerce to flourish with security and, the ability to conduct commerce. And so PKI has only grown since then. it is the critical trust component of much of the commerce that is conducted on the Internet. Not only that, it is, it also, includes as I mentioned, all the different use cases, code distribution, and lots of other things. And so, we think that, we have announced VeriSign Informed That is very much a PKI related service, and, we think that there are some interesting things we are looking at and considering with that TLD. We chose carefully, and that is the only TLD that we applied for. But we think it is very relevant to the security services that we provide. Okay. Thank you so much.

Operator: Thank you. Thank you. And we will take our last question from Alexei Gogolev with JPMorgan.

Alexei Gogolev: Jim, I was wondering if, you can maybe provide a bit more color and decompose 3Q net adds into gross adds versus deletions, and specifically how deletion and churn rates are performing, including any post promo churn How is that trending versus last year? So if I understand your question, you wanna. You want commentary, Alexei, on how our new registrations relate to deletes and the trends in deletes. Is that fair? Yeah. Because I am trying to understand, like, what are you incorporating in the guidance of 6.5% to 7% Like, what sort of assumptions are embedded in terms of gross adds, deletions, renewals, and mix? So just trying to understand Yeah.

John D. Calys: Okay. So, well, typically, we do not guide on each individual component. You So that is the first thing. You know, what I would say is we do see continued good demand for registrations. And we expect that to hold up reasonably well. Of course, fourth quarter has the holiday season in it. And that usually creates a little bit of a seasonal downturn for us. As far as deletions go, I think it is really what we have already talked about, and that is we are gonna continue to see a greater mix of first time renewing names Those names renew at almost half the rate of previously renewed names. And so as the proportion of the entire base has more first time renewing names, it is just a natural occurrence that the renewal rate will drop slightly. So we are forecasting that for the fourth quarter. I. You know, beyond that, I do not know if there is more that I can say. I do not know, Jim, if you have any additional comments or not.

Operator: I think your question was about trends, and I guess there is there are no, trends that we think are significant such that we are calling them out as something substantially different than what we have done in the past.

D. James Bidzos: What John described, a first time renewal rate, in the forties and a second or subsequent renewal rate in, the mid eighties. Has held pretty constant. Whenever we get a boost. I mean, we saw this in 2016 when we had a large China surge. We saw first time renewal rates just kinda fall off the edge, in the year and 2 that followed because of the, huge sudden and abrupt number of, first time renewing rates. I think this is not nearly as dramatic as that. And secondly, I think the underlying drivers for these registrations is quite different. I think that, our analysis. I can share this. Our analysis of the websites, the. I am sorry. The new registrations that we are getting to the extent we can identify the purpose of the websites is that they fall into our cohort that is the best renewing core. Cohort, the online presence. Cohort. I think this sort of ties into people finding it easier with AI develop a meaningful website and get an online presence. So I think in the long run, you know, we will see basically sort of a. If there if there are any significant deviation, some regression to the mean. it is held over a very, very long period of time. Thank you for that, Jim.

Alexei Gogolev: And you noted that the registrar retail pricing has only moved about 1% or less since the April .com notice. So do you expect a step up closer to the effective date And what is your best read on elasticity versus renewal? Impact? From that $0.71 wholesale increase?

D. James Bidzos: Yeah. that is a tough 1 to answer. I think that what we are seeing with the various tailwinds and the various factors driving these new registrations. Obviously, if we are seeing a benefit from it, the registrars are seeing even more because they have the freedom of pricing, and, of course, they have base of comms that renew the. Many registrars are renewing comms at twice the wholesale price. So I think that, that is a factor that just, sort of argues that it might be easier for them to. It might be easier to stay focused on what they are doing. I cannot speak for them, but I think that if they have found formulas that are working, perhaps they have had 6 months to prepare. And so maybe it is a it is a rate of growth that they enjoy and want to continue. I am not sure, but it is a modest increase that I think they can absorb. We track their, their retail prices, of course, and, there is certainly room there. But, I think they are selling. They are obviously selling the domain names that we are registering, so they are getting a benefit. I expect they are making decisions that drive their business, which drives ours. Thank you, Jim.

Alexei Gogolev: And just to clarify, are you seeing any meaningful early renewal activity ahead of the .com increase, like, media cash pull forward or renewal date shifts. And how should we think about the knock on impact to the timing of recognized revenue versus cash that is for John, I think.

John D. Calys: Yeah. You know, Lexi, we have not seen a lot of early renewals at this point. So we are not necessarily seeing a pull forward of renewals. You know, to the lower price point pre November 1st. Obviously, we watch for that, but we have not seen any significant evidence of that. You know, there is still another week or so before the price increase, but so I cannot predict what had happened during that time. But we have not seen anything yet.

D. James Bidzos: I think I would just add too that even with the price increase Com is still very, very competitively priced with respect to all of the other generic TLDs that are out there. I think that is a factor. The average price of those other TLDs is much higher than comms. Even with this price increase. it is true.

David Atchley: Then, Alexei, to your second point, just wanted to mention. So and I think we addressed this maybe on the last call as far as the revenue recognition, I said on the last call that expect about 50% of the .com price increase to flow through in revenue in 2027, Most of the rest of that in 2028. I do not know if that was the second part of your question, but I just wanted to touch on that.

Alexei Gogolev: Thank you, David. Yeah. I just wanted to confirm that has not changed and final question, Jim. So at high level, what is the unit for informed? Is it going to be per OCFP query or maybe per certificate? And what milestones between now and first half of next year would you point to that would validate that the product-market fit? I think the best way to answer that question is to ask you to follow our microsite, VeriSignInformed.com.

D. James Bidzos: We are posting blogs that provide additional information. We are very engaged in a number of standards bodies both the American National Standards Institute, the C2PA creators, forum. There are standards engagement, and we are engaged with a variety of, service providers. And we will be providing updates on that website. I would say right now, there is we announced also that we are opening the beta phase. So I think you will start seeing things roll out on that website So the high level plan, as I mentioned, is pricing by the end of the year, pricing structure, and availability of the service in the first half of 27. But all of those updates will be rolling out. There are also a number of seminars that we are doing jointly, with Forrester and some other folks. We have already done 1. We will be doing some other public events. So there will be a steady rollout of information that I think will give you the complete picture. I think it is a bit early for me to predict exactly how that will play out or what the milestones will be. We are we are certainly seeing substantial, interest and activity that this is. You know, security is only becoming more important, so the interest is high. And I think we are seeing this. I think we are seeing an understanding and an appreciation for what the synergy that comes from our high assurance infrastructure in providing this service globally at the level of performance that we can, we have seen have some people rethinking this. Understanding that something that perhaps they did not think was actually practically available as a practical matter is. So we will see how that plays out. But, follow the microsite, and I think you will and, obviously, we will update you every quarter. Thank you, Jim.

Operator: Thank you. Thank you. This concludes today's question and answer session. I would now like to turn the call back to David Atchley for any closing remarks.

David Atchley: 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.

Operator: This does conclude today's call. Thank you for your participation. You may now disconnect.