Bentley Systems Reports Second Quarter 2024 Financial Results

authorIntellectia.AI2024-08-06
7
BSY.O
Illustration by Intellectia.AI

Bentley Systems Reports Second Quarter 2024 Financial Results

Bentley Systems, Incorporated (NASDAQ:BSY), an infrastructure engineering software company, announced its financial results for the quarter ended June 30, 2024.

Key Financial Metrics:

Metric Q2 2024 Q2 2023 YoY Change Consensus Estimates QoQ Change
Total Revenue $330.3 million $296.7 million +11.3% $325.07 million N/A
Earnings per Share (EPS) $0.22 $0.15 +46.7% $0.23 N/A
Adjusted Earnings per Share (Adjusted EPS) $0.31 $0.24 +29.2% N/A N/A
Operating Income Margin 24.3% 18.0% +6.3% N/A N/A
Adjusted Operating Income with Stock-based Comp. Margin 28.8% 24.7% +4.1% N/A N/A
Cash Flows from Operations $62.6 million $80.6 million -22.4% N/A N/A

Interpretation: Bentley Systems delivered strong year-over-year growth, surpassing analyst expectations for both revenue and adjusted EPS. Despite a robust rise in subscription revenues and operating margins, cash flows from operations saw a decline, suggesting potential working capital fluctuations or changes in other operating assets and liabilities.

Revenue Performance by Segment:

Segment Revenue Q2 2024 Revenue Q2 2023 YoY Change
Subscriptions Revenues $297.4 million $259.2 million +14.7%
Other Revenue $32.9 million $37.5 million -12.3%

Interpretation: Subscription revenues, the cornerstone of Bentley Systems’ business model, showed impressive growth, underscoring strong recurring revenue trends. Conversely, other revenue segments saw a decline, potentially indicating challenges in non-recurring professional services as stated by the CFO.

Key Operational Data:

Operational Metric Q2 2024 Q2 2023 YoY Change
Annualized Recurring Revenues (ARR) $1,215.9 million $1,105.9 million +11%
Last twelve-month recurring revenues dollar-based retention rate 108% 110% -2%

Comments from Company Officers: - Greg Bentley, Executive Chair : Highlighted favorable operating results and confidence in sustaining performance driven by competitive advantages and efficient execution. - Nicholas Cumins, CEO : Emphasized solid foundation for the full year, with AI-based solutions gaining traction. - Werner Andre, CFO : Indicated financial performance aligns with annual outlook for ARR growth and profitability, despite less emphasis on non-recurring services.

Dividends and Share Repurchase Program: - No specific details provided in the report.

Forward Guidance: - The company provided confidence of remaining within their annual outlook range for ARR growth, profitability, and operating cash flow without specific numeric guidance.

Stock Price Movement: - After the earnings announcement, Bentley Systems stock experienced a slight decline of -0.65%.

In summary, Bentley Systems, Incorporated demonstrated a strong quarter with healthy revenue growth, especially in subscription services, while maintaining solid operating margins. The company's outlook remains optimistic bolstered by strategic focus on AI innovations and subscription revenue growth. However, the stock market reaction was slightly negative post-earnings release.

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