Verisign (NASDAQ ticker symbol: VRSN ) reported its Q4 2020 earnings after the closing bell this afternoon. In the press release announcing its earnings, the company also announced a price hike is coming for .com domain names. The current wholesale rate Verisign charges domain registrars is $7.85/year for .com domain names, and this price will increase to $8.39/year on September 1, 2021.
Here’s the relevant excerpt from the press release:
“Verisign announces that it will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from $7.85 to $8.39, effective Sept. 1, 2021.”
The actual cost paid by domain registrants to register or renew domain names will ultimately be determined by domain registrars. It looks like GoDaddy charges $12.99/year to register a new .com domain name, not including any discounts or coupons offered by the registrar.
I imagine domain registrars are not going to eat this fee, but instead, will let registrants know that Verisign is increasing the registration cost and that increase is being passed along. Some registrars may even use the pending price increase as an opportunity to drive revenue by having registrants renew their domain names before the price increases.
It looks like Verisign investors are happy about the news, as VRSN stock is currently trading at $211/share, up 3.15% after hours. Verisign stock is close to its 52 week high of $221.30.