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Q2 2014 Domain Name Industry Brief

THE DOMAIN NAME INDUSTRY BRIEF Q2 2014 HIGHLIGHTS As a global leader in domain names and Internet security, Verisign reviews the state of the domain name industry through a variety of statistical and analytical research. Verisign provides this briefing to highlight important trends in domain name registrations, including key performance indicators and growth opportunities, to industry analysts, VERISIGN media and businesses. To access the Domain Name Industry Brief archives, visit VerisignInc.com/DNIB. Q2 2014 DOMAIN NAME REGISTRATIONS 280 MILLION domain names registered globally' 7.2% INCREASE year over year from Q2 of 2013 LARGEST TLDS BY ZONE SIZE? Source: Zooknic, Q2 2014; Verisign, Q2 2014; Centralized Zone Data Service, Q2 2014 .com (TOKELAU) .tk (GERMANY) .de .net (CHINA) .cn (UNITED KINGDOM) .uk .org 8 (RUSSIAN FEDERATION) .ru .info 10 (NETHERLAN DS) .nl 50 75 MILLIONS 100 125 GROWTH OF.com & .net Verisign is the global registry operator for .com and .net. 128.9 MILLION .com & .net domain names in the •com 3.7% INCREASE adjusted zone in Q2 2014 .net 8.5 MILLION year over year new .com &.net domain names in •com Q2 2014 net LARGEST ccTLDS BY ZONE SIZE Source: Zooknic, Q2 2014. For further information on the Domain Name Industry Brief methodology, please refer to the last page of the report. CCTLDS are designated for use by countries and territories. .tk (TOKELAU) de (GERMANY) .cn .uk (UNITED KINGDOM) .nl (NETHERLANDS) (CHINA) .ru (RUSSIAN FEDERATION) .br (BRAZIL) .au (AUSTRALIA) .fr (FRANCE) 6. .it (ITALY) 10 BASE CCTLD REGISTRATIONS 129.3 MILLION Increase Q2 2014 Increase 1.7% 11.5% over Q1 2014 over Q2 20 13 LARGEST NEW 9TLDS BY ZONE SIZE ON DAY 60 OF THEIR GENERAL AVAILABILITY PERIOD Source: Centralized Zone Data Service, Q2 2014 guru .berlin .photography .tips .today link .email .company .solutions Percent 100 "Xn-3ds443g, Chinese for "anline" Mobile app 52% usage of total U.S. There will be more makes up digital media engagement. MOBILE CONNECTED DEVICES than the number of people on Earth by the end of 2014. DNS QUERY LOAD 95 BILLION Average Daily DNS Query Load* Compared to the previous quarter, the daily average increased 11.7 percent and the peak increased 70.4 percent. Year over year, the daily average increased 18.8 percent and the peak decreased 16.6 percent. 204 BILLION Peak Query Load" * Across all TLDS operated by Verisign 250 DNS Peak Day Queries 225 DNS Daily Average Queries 200 175 150 * 125 100 75 50 25 04 2006 Q1 2007 a1 2008 Q2 2008 a2 2006 Q3 2006 04 2009 a1 2010 Q2 2010 a2 2007 Q4 2010 Q1 2011 a2 2011 Q1 2009 92 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 04 2013 Q1 2014 Q1 2012 For more information about the Q2 2014 Domain Name Industry Brief visit Verisignlnc.com/DNIB. 1. ThegTLD and c TLD data cited in this report are estimates as of the time this report was developed, and is subject to change as more complete data is received. Total indudes ccTLD Internationalized Domain Names. 2. tk is a free CCTLD that provides free domain names to individuals and businesses. Revenue is generated by monetizing the expired domain names. Domain names no longer in use by the registrant or are expired are taken back by the registry and the residual traffic is sold to advertisement networks. http://www.businesswire.com/news/home/20131216006048/en/Freenom-Closes-3M-Series-Funding#LxeUGNID9s 3. Source: Zooknic 5. Appusage per cent 4. The number ofdn the Us s provided by ComScore, http://www.comscore.m Aaichle ogram-status/delegated-s new 9TLDS is published by ICANN. http://newgtids.ic 6. The number of connected devices per person by 2014 is provided by Cisco. http://www.cisca.com/den/us/solutions/collateral/service-provider/visual-networking-index-vni/white_paper_c11-520862.html Presentations-and-Whi ABOUT VERISIGN in As a global leader in domain names and Internet security, Verisign powers the invisible navigation that takes people to where they want to go on the Internet. For more than 15 years, Verisign has operated the infrastructure for a portfolio of top-level domains that today includes .com, .net, tv, .edu, .gov, .jobs, .name and .cc, as well as two of the world's 13 Internet root servers. Verisign's product suite also includes Distributed Denial of Service (DDOS) Protection Services, iDefense Security Intelligence Services and Managed DNS. To learn more about what it means to be Powered by Verisign, please visit Verisigninc.com. © 2014 VeriSign, Inc. All rights reserved. VERISIGN; the Verisign logo; and other trademarks, service marks and Verisign designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and foreign countries. All other trademarks are property of their respective owners. Billions Q3 2007 Q4 2007 Q3 2008 Q4 2008 Q2 2009 93 2009 Q3 2010 Q3 2011 Q4 2011 Q3 2013 Q2 2014

Q2 2014 Domain Name Industry Brief

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As a leader in global domain names and Internet security, Verisign provides this briefing to review the state of the domain name industry and highlight important trends in domain name registration.

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