.Com and .net domain base slipped 1.1 million domains last quarter.

.Com and .net domain name registry Verisign (NASDAQ: VRSN) reported earnings after the market closed yesterday.

For the third quarter, the company reported revenue of $391 million, up 3.8% year over year. Net income increased from $188 million in Q3 2023 to $201 million in the same quarter this year.

This increase came despite the overall base of .com and .net domains falling for the sixth consecutive quarter. The company ended the quarter with a combined 169.6 million domains under management, down 2.5% year over year. The base fell 1.1 million during the quarter.

Historically, Verisign has blamed China for this decrease. But the U.S. market took the biggest hit in Q3, losing about 850,000 names. EMEA saw a slight increase in domains.

Verisign increased the price of new and renewal .com domains by 7% to $10.26, effective September 1. This should allow the company to continue posting revenue gains even if domain registrations continue to slip.

However, its current contract does not include automatic price increases in the next two years, so the company must return to domain growth to continue showing topline gains. The company is running new marketing campaigns with registrars to boost registrations.

Verisign narrowed its guidance for the year. Its prior guidance was for the .com and .net domain base to fall 2.0% to 3.0% in the year. It now expects a 2.3% to 2.9% decrease.