Bentley Systems, Incorporated, the infrastructure engineering software company, announced results for the quarter ended June 30, 2024.
Second Quarter 2024 Results
- Total revenues were $330.3 million, up 11.3% or 11.9% on a constant currency basis, year-over-year;
- Subscriptions revenues were $297.4 million, up 14.7% or 15.3% on a constant currency basis, year-over-year;
- Annualized Recurring Revenues (“ARR”) was $1,215.9 million as of June 30, 2024, compared to $1,105.9 million as of June 30, 2023, representing a constant currency ARR growth rate of 11%;
- Last twelve-month recurring revenues dollar-based net retention rate was 108%, compared to 110% for the same period last year;
- Operating income margin was 24.3%, compared to 18.0% for the same period last year;
- Adjusted operating income inclusive of stock-based compensation expense (“Adjusted OI w/SBC”) margin was 28.8%, compared to 24.7% for the same period last year;
- Net income per diluted share was $0.22, compared to $0.15 for the same period last year;
- Adjusted net income per diluted share (“Adjusted EPS”) was $0.31, compared to $0.24 for the same period last year; and
- Cash flows from operations was $62.6 million, compared to $80.6 million for the same period last year.
Six Months Ended June 30, 2024 Results
- Total revenues were $668.1 million, up 9.3% or 9.5% on a constant currency basis, year-over-year;
- Subscriptions revenues were $604.5 million, up 12.6% or 12.7% on a constant currency basis, year-over-year;
- Operating income margin was 25.8%, compared to 19.5% for the same period last year;
- Adjusted OI w/SBC margin was 31.1%, compared to 26.8% for the same period last year;
- Net income per diluted share was $0.44, compared to $0.29 for the same period last year;
- Adjusted EPS was $0.62, compared to $0.49 for the same period last year; and
- Cash flows from operations was $267.6 million, compared to $256.8 million for the same period last year.
Executive Chair Greg Bentley said, “We are pleased to report broadly favorable operating results for 24Q2. Our confidence in sustaining commendable performance is reinforced by the enduring—and if anything, broadening— vitality of our infrastructure engineering end markets, met with BSY’s competitive advantages and reliably efficient execution. But to me, the long-term potential of initiatives being explored and developed under our new generation of executive leadership seems even more auspicious!”
CEO Nicholas Cumins said, “Our performance in 24Q2 and the first half provides a solid foundation for the full year, with very positive end-market and operational momentum. Our year-over-year ARR growth of 11% on a constant currency basis (11.5% excluding China) is consistent with the previous quarter. Public Works / Utilities and North America remained the main growth drivers, and we continued to add new small- and medium-sized accounts at a rapid pace, reflecting healthy market conditions.
The traction we are generating with our AI-based solutions for asset analytics is worth noting. AI is going to become a major driver of our business, to help owner-operators improve the performance of their assets and make infrastructure more resilient, as well as to help engineering services firms increase their productivity and bridge the widening engineering resources capacity gap.”
CFO Werner Andre said, “24Q2 financial performance positions us solidly within our annual outlook range for ARR growth, profitability, and operating cash flow. While our mainstay subscription revenues are exceeding expectations, year-over-year growth in total revenues is being impacted by the expected prevalence of lower non-recurring professional services for our Cohesive digital integrator. Continued strong margins and operating cash flows throughout the first half, net of dividends and stock repurchases, further enhanced our balance sheet and acquisition flexibility.”
Recent Developments
Effective July 1, 2024, Greg Bentley transitioned from Chief Executive Officer to Executive Chair of the Board of Directors and Nicholas Cumins was promoted from Chief Operating Officer to Chief Executive Officer.
For full disclosure of the Second quarter 2024 results, please click here.
Call Details
Bentley Systems will host a live Zoom video webinar on August 6, 2024 at 8:15 a.m. Eastern time to discuss results for its second quarter ended June 30, 2024.
Those wishing to participate should access the live Zoom video webinar of the event through a direct registration link at https://us06web.zoom.us/webinar/register/WN_y6GttyVAR8amDwrlXVo1DA#/registration. Alternatively, the event can be accessed from the Events & Presentations page on Bentley Systems’ Investor Relations website at https://investors.bentley.com. In addition, a replay and transcript will be available after the conclusion of the live event on Bentley Systems’ Investor Relations website for one year.
