NASDAQ$BSY

Bentley Systems, Incorporated · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Bentley Systems' Q3 2024 earnings reflected revenue increase and strategic growth initiatives.

Bentley Systems reported a 9.3% increase in total revenues, reaching $335.2 million, and a 12% constant currency ARR growth. The company also announced the acquisition of Cesium and a strategic partnership with Google, while delivering strong quarterly operating results.

  • Total revenues increased by 9.3% to $335.2 million.
  • ARR reached $1,270.7 million, representing a 12% constant currency growth rate.
  • Subscriptions revenues grew by 12.0% to $303.2 million.
  • Adjusted EPS was $0.24, compared to $0.22 for the same period last year.

Headline financials

Total Revenue

$335M

Previous: $307M+9.3%
EPS

$0.13

Previous: $0.22-40.9%
Annualized Recurring Revenue

$1.27B

Previous: $1.12B+13.0%
Operating income margin

20.5%

No prior period
AOI less SBC margin

26.7%

No prior period
Capital Expenditures

-$8.5M

Previous: -$18.9M+55.0%
Free Cash Flow

$33.8M

Previous: $34.1M-0.8%
Net Income

$42.3M

Previous: $53M-20.2%
Operating Income

$68.6M

Previous: $73.7M-6.9%
Gross Profit

$270M

Previous: $242M+11.7%
Cash & Equivalents

$72.2M

Previous: $67M+7.8%
Total Assets

$3.4B

Previous: $3.13B+8.3%
R&D Expense

$70.1M

Previous: $65.5M+7.0%
Stock-Based Comp

$16.1M

Previous: $18.5M-13.0%

Revenue & EPS history

Bentley Systems · Revenue · Quarterly

$335M

Q3 2024+9.3%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Bentley Systems · $35.9M total across 2 segments · Q3 2023

  • Services
    $24M+1.7%
  • Perpetual Licenses
    $11.9M+25.7%

Forward guidance

Total revenue growth for 2024 is expected at the lower end of the annual outlook range due to continued declines in Cohesive professional services for Maximo. Profitability and cash flow in the quarter position us well in relation to our profitability outlook and an increased cash flow outlook for the year.

Tailwinds

  • Upward inflection in year-over-year ARR growth is directionally consistent with expectations for this year’s second half.
  • Growth in subscriptions revenues remains robust.
  • Profitability positioned well in relation to outlook.
  • Cash flow in the quarter positions us well in relation to increased cash flow outlook for the year.
  • New five-year $1.3 billion bank credit facility entered into.

Headwinds

  • Total revenue growth for 2024 is expected at the lower end of our annual outlook range.
  • Continued declines in Cohesive professional services for Maximo.
  • Attrition prevailing stubbornly in China.
  • Operating income margin was 20.5%, compared to 24.0% for the same period last year.
  • Adjusted operating income inclusive of stock-based compensation expense margin was 26.7%, compared to 28.2% for the same period last year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-0.5%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

16 / 29 earnings

Positive

+14.2%

Q4 2025

Best reaction

-23.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.8%+1.8%+2.6%
Q4 2025+14.2%+19.3%+7.0%
Q3 2025-1.0%-5.4%-11.8%
Q1 2025+5.6%+9.0%+13.7%
Q4 2024-2.3%-6.2%-13.1%
Q3 2024-2.7%-1.1%-0.4%
Q2 2024+4.6%+8.0%+8.6%
Q1 2024+1.5%+3.6%-5.9%
Q4 2023-3.2%-2.5%-0.5%
Q3 2023+7.0%+8.1%+5.5%
Q2 2023-6.2%-8.4%-2.5%
Q1 2023+9.1%+7.1%+19.0%
Q4 2022+1.7%+8.3%+7.8%
Q3 2022+1.7%+14.4%+16.3%
Q2 2022+1.1%+1.1%-6.0%
Q1 2022-23.4%-11.3%-5.4%
Q4 2021+6.1%-0.9%+15.1%
Q3 2021-5.5%-5.9%-21.3%
Q2 2021-3.6%-1.2%+6.6%
Q1 2021+8.1%+9.5%+39.6%
Q1 2020+8.1%+9.5%+39.6%
Q4 2020+3.8%+6.0%+7.7%
Q2 2020+3.8%+6.0%+7.7%
Q4 2018+3.8%+6.0%+7.7%
Q3 2019-10.2%-12.5%-4.2%
Q2 2019-10.2%-12.5%-4.2%
Q3 2020-10.2%-12.5%-4.2%
Q4 2019-10.2%-12.5%-4.2%
Q1 2019-10.2%-12.5%-4.2%

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