VRSN
#Yes, thanks for the question.
So you're correct, our renewal rates are up about 1% year-over-year, our preliminary renewal rate in the quarter is 73.7%, as <UNK> mentioned, up from 72%.
The improvement we're seeing is primarily in the previously renewed rate.
That's up about 80 basis points year-over-year from about 82.7% a year ago to 83.5% this year.
And that improvement in the previously renewed rate, we're seeing that both in US and international markets.
On our first time renewal rate, it's also up slightly, but we're primarily seeing that improvement in the US market.
On average, that first-time renewal rate is still around the 50% range, though.
Again, Steve, we look to manage all our expenses, not particularly a particular line item ---+ in a particular line item.
I mean, we've also had slightly lower registration fees in the second quarter versus the first quarter.
So because there tends to be more new names in the first quarter, we tend to have higher registration fees for ICANN, than we have in the second quarter.
So it's a little seasonal dip there from that.
But we continue to look at our expenses across the board, add resources where we feel it's appropriate, but in total, we're really focused on that total non-GAAP operating expense as a key metric that we're looking to manage.
The fundamental rationale for the two agreements is addressing the priority, as called for by NTIA of security and stability in the Root Zone.
And that's the reason that the .com agreement is being extended, so that it can be coterminous with the Root Zone maintainer agreement.
The two agreements are related in that sense.
So hopefully that helps you understand that the two agreements are really part of an effort to provide security and stability during this transition process of Root Zone oversight from NTIA to ICANN.
I think in that sense, you view them as part of an effort to assure security and stability during a transition process.
Sure, <UNK>.
As we talked about last quarter, we did expect the China volumes to normalize and at least in the second quarter, they absolutely did normalize for us.
So at least what we're currently seeing is those are at much more normal levels.
As far as the license agreement, I don't really ---+ I don't have any particular expectations.
We've always operated in China.
We've done well there.
I think our brand is quite strong there.
I don't really have any change of expectation, just related to the license, to how we perform.
Anything you want to add, <UNK>.
Yes, I think the license is important, but we have been operating with the approval of the Chinese government for a period of time, as they introduce new processes for their local registrars to follow.
There was a new licensing regime that was announced some time ago.
We've been in that process for a period of time, and as I mentioned in my earlier remarks, we now are the ---+ as far as we know, the first registries, .com and .
net to be approved.
So we are licensed for those registries to operate in China, which is important, although we did expect that process would yield the result that it did.
So I don't see any interruption in the availability of our products and their operation in China, so I think it's certainly an important milestone for us, but one that we've been working with the Chinese government on for a period of time.
That in and of itself I don't expect to change anything from the registrant point of view.
It just simply enables to registrars to comply with local law.
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