The company cites a waning pandemic wave and general macroeconomic situation for weaker-than-expected growth.
Verisign (NASDAQ: VRSN) has lowered its domain name growth forecast this year.
The company initially expected the base of registered .com and .net domains to grow by 2.5% to 4.5%. Now he expects growth of 1.75% to 3.5%. It also lowered the top of its revenue forecast and expects to generate $1.42 billion to $1.435 billion in 2022.
Verisign blames two factors. First, the surge in registrations as businesses went online during the pandemic appears to be waning. Second, the company blames “recent global macroeconomic factors.”
In response to an analyst’s question, Verisign CEO Jim Bidzos noted:
We’ve also heard from some of our registrars that they’re seeing the same thing as us, which means the additional demand for new registrations that has increased during the pandemic appears to be diminishing. It is difficult to predict how changes in these and other trends will impact the demand for new registrations and the growth of our domain name base, we expect new registrations in the second half to be similar to the levels we have seen in the second half of last year. Hope this helps.