Bentley Systems, Inc. (BSY) Annual Report (10-K) for the fiscal year ended December 31, 2024

Press release · 02/26 21:58

Bentley Systems, Inc. (BSY) filed its annual report for the fiscal year ended December 31, 2024. The company reported total revenue of $2.3 billion, a 14% increase from the previous year. Net income was $444 million, a 21% increase from the previous year. The company’s gross profit margin was 84%, and its operating margin was 34%. As of December 31, 2024, the company had cash and cash equivalents of $1.4 billion and total debt of $1.1 billion. The company’s market value was $6.7 billion as of June 28, 2024. The report also includes information on the company’s executive compensation, corporate governance, and risk factors.

Financial Performance Overview

Bentley Systems, Incorporated is a leading global provider of infrastructure engineering software solutions. The company’s results of operations have been affected by changes in foreign currency exchange rates, with approximately 34% to 36% of total revenues and 42% to 46% of total operating expenses denominated in currencies other than the U.S. dollar in recent years.

Revenues

Total revenues increased by 10.1% in 2024 and 11.8% in 2023, driven primarily by growth in subscription revenues.
Subscription revenues, which make up the majority of total revenues, grew by 13.2% in 2024 and 12.5% in 2023, reflecting expansion from existing accounts and growth from new accounts.
Perpetual license revenues were relatively flat in 2024 compared to 2023, while services revenues declined by 17.9% in 2024 due to weakness in Maximo-related work.
Geographically, the company saw revenue growth across all regions, with the Americas, EMEA, and APAC regions growing by 10.2%, 9.9%, and 10.6% respectively in 2024.

Costs and Expenses

Cost of revenues decreased by 3.1% in 2024, driven by lower headcount-related costs in the services business.
Operating expenses increased by 8.4% in 2024, with increases in research and development, selling and marketing, and general and administrative expenses.
The company incurred realignment expenses of $847 in 2024 and $12,579 in 2023 related to a strategic program to better align resources with the business strategy.
Interest expense, net decreased by 44.6% in 2024 due to lower debt levels.

Other Financial Metrics

Annualized Recurring Revenue (ARR) grew by 12% in 2024 and 2023 on a constant currency basis.
Account retention rate remained high at 99% in 2024 and 98% in 2023.
Recurring revenues dollar-based net retention rate was 110% in 2024 and 2023.

Overall, Bentley Systems delivered solid financial performance in 2024, with strong growth in subscription revenues and continued high customer retention, despite some headwinds in services revenues and elevated operating expenses related to strategic initiatives.