BSY Earnings Prediction
The chart below shows how BSY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BSY sees a -0.88% change in stock price 10 days leading up to the earnings, and a +0.01% change 10 days following the report. On the earnings day itself, the stock moves by +2.42%. This data can give you a slight idea of what to expect for the next quarter's release.
BSY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
349.82M
12.61%
4.37%
Gross Margin
78.22%
3.89%
0.08%
Operating Margin
18.54%
42.73%
-12.59%
Net Margin
14.22%
-75.40%
12.59%
EPS
0.16
-70.37%
23.08%
No Data Available
BSY Earnings Analysis
Bentley Systems Inc Corporation (BSY.O) Earnings Conference Call
Positive
Subscription Revenue Growth: Subscriptions increased to 90% of total revenues, providing greater visibility and consistency.
Margin Improvement Commitment: Adjusted operating income increased, achieving a commitment of 100 basis points of margin improvement annually.
ARR Growth Excluding China: ARR growth was 12% year-over-year, with a strong performance excluding China.
E365 Subscription Revenue Growth: E365 program drove strong growth, representing 42% of 2024 subscription revenues, up from 38% in 2023.
New Logos Impact on ARR: New logos contributed 300 basis points of ARR growth, with over 600 new logos added to the online store.
EMEA Quarter Performance: EMEA had a standout quarter with strengths across Europe and the Middle East, contributing to overall growth.
Quarterly Revenue Increase: Total revenues for Q4 were $350 million, up 13% year-over-year, and $1.353 billion for the full year, up 10%.
Subscription Revenue Growth: Subscription revenues grew 16% year-over-year for Q4 and 13% for the full year, improving revenue quality.
Recurring Revenue Increase: Last 12 months recurring revenues increased by 13% year-over-year, now representing 91% of total revenues.
Customer Retention Improvement: Net revenue retention rate rebounded to 110%, indicating strong customer retention and growth.
Free Cash Flow Increase: Free cash flow for the year was $435 million, up 4% year-over-year, with a strong conversion of adjusted EBITDA to cash flow.
ARR Growth and Margin Expansion: The company expects to sustain low double-digit ARR growth and approximately 100 basis points of annual margin expansion in 2025.
Negative
China ARR Decline: Despite a strong finish to 2024, the company faced challenges with a decline in ARR in China, which now represents less than 2.5% of total ARR, indicating ongoing headwinds in that market.
Service Revenue Decline: Service revenues declined by 21% for Q4 and 18% for the full year, primarily due to reduced maximum related work within their digital integrator cohesive, which negatively impacts overall revenue growth.
Operating Income Margin Decline: The adjusted operating income margin declined by 250 basis points in Q4, attributed to seasonal operating expenses and the timing of reinvestment from a strategic realignment program, suggesting potential inefficiencies in cost management.
Decline in ARR Outlook: The company anticipates a continued decline in ARR in China for 2025, reflecting a more conservative outlook and potential risks associated with geopolitical and economic factors in that region.
Flat License Revenue: Perpetual license revenues were flat for the full year, indicating a lack of growth in this segment, which could limit overall revenue diversification and stability.
Free Cash Flow Challenges: The company expects free cash flow less stock-based compensation to fall short of doubling from 2020 without normalizing for COVID windfalls, highlighting potential challenges in achieving growth targets.
BSY FAQs
How does BSY typically perform around its earnings report dates?
Is Bentley Systems Inc (BSY) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
BSY Earning Call Sentiment
Bentley Systems, Incorporated (BSY) Q4 2024 Earnings Call Transcript
BSY.O
-1.3%Positive
The earnings call summary highlights strong subscription revenue growth and improved margins, with consistent ARR growth. The strategic partnership with Google and AI-driven product launches indicate robust future potential. Despite some concerns about service revenue decline and competitive pressures, the overall sentiment is positive, supported by dividend increases and strong cash flow. The Q&A reveals optimism in demand and infrastructure investments, although some uncertainties remain, particularly in China and permitting reforms. Given these factors, a positive stock price movement is likely, especially if market cap data suggests a smaller company.
