Rob Oliver

Jim credited high-assurance infrastructure, AI tailwinds, and marketing programs but said parsing them apart with precision is difficult.

Jim explained .web is governed only by ICANN, giving complete wholesale pricing flexibility subject to a 6-month notice, plus the ability to sell premium names.

John explained revenue is recognized ratably, so the price increase takes roughly two years to flow through, with about 50% recognized in 2027.

John noted first-time renewals averaging mid-40% range, previously renewed in mid-80% range with improvement. Higher first-time renewal mix expected in H2 2026.

Jim noted application window opens end of April, closes August 12. VeriSign is taking technical steps to be ready. Evaluation of participation still ongoing.

Jim explained AI and marketing programs are synergistic and difficult to separate. AI makes registrar tools more effective while programs are tailored to diverse channel.

Jim explained AI benefits through registrar tools, LLM data scraping driving DNS queries, and increased Internet traffic. Considers AI one of several positive components.

Jim indicated potential new security/stability services leveraging their infrastructure, consistent with core mission. More details expected in coming months via blog series.

Jim credited offering program flexibility to diverse channel, including incentivizing registrations in categories with stronger renewal rates.

Jim detailed AI's positive impact: LLMs scouring Internet driving DNS traffic, AI tools improving domain suggestions and website creation, agentic browsers increasing reliance on DNS.

Jim explained AdSense changes are part of a 15-year trend since Google Panda in 2011, and VeriSign views its exposure as minimal after a decade of these changes.

Jim cited marketing program improvements and cyclical shift to acquisition as key drivers. John noted US improved nicely in Q3 while EMEA most consistent.

Jim cited three drivers: registrar acquisition shift, marketing program engagement, and improving renewal rates. Costs baked into updated guidance.

John confirmed year-over-year growth across all regions with Asia-Pac strongest. China now reported within Asia-Pac and showing positive trends with volatility caveat.

George credited early adopters of marketing programs for improved registrations and noted additional registrars testing programs in 2025.

John Callis indicated Q1 expense levels should persist through 2025 due to headcount and incentive comp, with slight margin improvement. Jim provided .web IRP update with hearing in November.

Jim cited tailwinds from registrar acquisition shift, marketing programs, and identified macro uncertainty as the remaining variable for guidance range.

Jim emphasized consistent bipartisan support for internet infrastructure policy and looked forward to working with new ICANN CEO and NTIA administrator.

George acknowledged it is too early for regional detail but noted positive feedback from registrars that programs align with their strategies.

Jim Bidzos directly addressed the three positive trends: China easing, marketing programs gaining adoption, and registrars refocusing on customer acquisition.

Miller said the headwind peaked in the prior-year second quarter and is not a meaningful factor going forward.

Moore said AI is not yet a meaningful flip driver, giving a specific 12 to 18 month horizon rather than claiming credit now.

Lynn corrected target from 7-8 to 10-12 products per customer. Seeing more momentum from state and federal group getting local products to states. Cloud experience improvements and AI embedding helping accelerate cross-sell motion toward 2030 goals.

Lynn said flip driver shifting from security to cloud value proposition including AI features. Brian added version consolidation progress enabling more flips, math still 1.7-1.8x maintenance uplift, and seeing increased add-on sales during flips.

Lynn said cross-sell opportunities are consistently across the board but still early. One Tyler initiative spans sales, cloud delivery, client experience, and state sales team buildout.

Lynn said no ARPA clawback signals from clients. Federal terminations totaled less than $1M across five deals (Education, HHS, USAID), with another ~$1M being monitored.

Lynn reported strong version consolidation progress (ERP 95-97% single version, Justice 75%+), ahead of schedule, with synchronized cadence releases as later-decade milestone.

Mike said customer conversations at higher level than ever. AI capabilities cited as top reason for Teamwork Collection upgrades, cloud migrations, and deeper strategic partnerships. RPO accelerating for third quarter shows customer confidence in platform for 2027-2029.

Mike said channel partners are well-matured over several years. Fast Shift is additive. Partners now helping customers understand AI benefits as additional incentive to migrate. Ascend program designed to continue channel momentum.

Mike positioned Isolated Cloud as next stage in architectural evolution after data residency and FedRAMP. Joe acknowledged near-term AI COGS investment but expects costs to decline.

Arkady Volozh said the asset-light model is still very early but encouraging, letting Nebius work with partners who have capacity and capital but lack the platform and go-to-market, extending its reach without deploying its own balance sheet.

Roman Chernin said Nebius has been committed to an open AI ecosystem from the start, that open models are valuable because they can be tuned and optimized per customer, and that Token Factory provides day-0 support for frontier open models with leading benchmarked performance.