Bentley Systems, Incorporated (BSY) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -8.70%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.24, delivering a surprise of -4%.Over the last four quarters, th ...

Financial Performance - Total revenues for Q4 2024 were $349.8 million, representing a year-over-year increase of 12.6%[3] - Subscription revenues for Q4 2024 reached $315.6 million, up 15.8% year-over-year[3] - Annualized Recurring Revenues (ARR) as of December 31, 2024, were $1,283.3 million, reflecting a constant currency growth rate of 12%[3] - Total revenues for the year ended December 31, 2024, increased to $1,353,095, up 10.2% from $1,228,413 in 2023[24] - Subscription revenues for the year ended December 31, 2024, amounted to $1,223,362 million, up from $1,080,307 million in 2023[32] - For the three months ended December 31, 2024, total revenues were $349,822 million, compared to $310,641 million in the same period of 2023[32] - Subscription revenues for the three months ended December 31, 2024, were $315,590 million, an increase from $272,468 million in 2023[32] Income and Profitability - The net income per diluted share for Q4 2024 was $0.16, compared to $0.54 for the same period last year[3] - Net income attributable to Bentley Systems for the year ended December 31, 2024, was $234,787, down 28.2% from $326,787 in 2023[30] - The company reported a diluted net income per share of $0.72 for the year ended December 31, 2024, compared to $1.00 in 2023[30] - Adjusted operating income for the year ended December 31, 2024, was $445,727, an increase of 12.5% from $396,147 in 2023[28] - Adjusted EBITDA for the year ended December 31, 2024, was $465,368, compared to $416,789 in 2023, indicating a growth of 11.6%[31] Expenses and Investments - Total operating expenses for the year ended December 31, 2024, were $793,178, an increase from $731,788 in 2023[24] - Research and development expenses for the year ended December 31, 2024, totaled $281,247, up from $274,619 in 2023[24] - The company utilized $130,407 for acquisitions in 2024, significantly higher than $26,023 in 2023[26] Cash Flow and Dividends - Cash flows from operations for 2025 are anticipated to be between $415 million and $455 million[12] - Cash flow from operations for the year ended December 31, 2024, was $435,292, compared to $416,696 in 2023, reflecting a 4.4% increase[26] - The company plans to increase its quarterly dividend to $0.07 per share starting from Q1 2025[11] Future Projections - For the full year 2025, total revenues are projected to be in the range of $1,461 million to $1,490 million, with subscription revenues growth rate of 10.5% to 12.5% in constant currency[12] - The adjusted operating income margin for 2025 is expected to be approximately 28.5%, representing an annual improvement of 100 basis points[12] Foreign Exchange Impact - The impact of foreign exchange on total revenues for the year ended December 31, 2024, was a decrease of $846 million[32] - The impact of foreign exchange on subscription revenues for the year ended December 31, 2024, was a decrease of $814 million[32] - The constant currency total revenues for the year ended December 31, 2024, adjusted for foreign exchange, were $1,353,941 million[32] - The constant currency subscription revenues for the year ended December 31, 2024, adjusted for foreign exchange, were $1,224,176 million[32] - The total revenues for the three months ended December 31, 2024, in constant currency were $351,559 million[32] - The subscription revenues for the three months ended December 31, 2024, in constant currency were $317,188 million[32]

Analyst Background - The analyst has a mathematics education background and a career in the financial industry, including experience as an investment analyst in a family office and currently as a finance professional in a boutique investment bank [1] - The analyst focuses on small to mid-cap companies with market capitalizations of less than $20 billion, which are significant in their industries and poised to attract capital market attention [1] - The investment approach targets high-quality yet undervalued companies with robust cash flow, strong moats, consistent earnings growth, and potential for growth through innovation, expansion, or market recovery [1] Disclosure and Editorial Notes - The analyst has no current stock, option, or derivative positions in the mentioned companies but may initiate a long position in BSY within the next 72 hours [2] - The article expresses the analyst's personal opinions and is not compensated by any company mentioned [2] - Seeking Alpha welcomes the analyst as a new contributing analyst and encourages others to share investment ideas for potential publication and earnings [3]

Group 1 - The article discusses the author's perspective on Bentley Systems (NASDAQ: BSY), maintaining a hold rating due to uncertainty about near-term earnings performance and concerns regarding high valuation [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability, steady growth, and strong balance sheets [1] - There is a belief that while investing in successful companies carries risks, the potential for significant development can make immediate price less critical [1]

Core Viewpoint - Investors in Bentley Systems, Incorporated (BSY) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Dec 20, 2024 $70.00 Call option [1] Company Analysis - Bentley Systems currently holds a Zacks Rank 3 (Hold) in the Internet - Software industry, which is positioned in the top 16% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while three analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from earnings of 25 cents per share to 23 cents per share [3] Options Market Insights - The high implied volatility surrounding Bentley Systems shares suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Financial Data and Key Metrics Changes - In Q3 2024, the company reported a 12% year-over-year growth in Annual Recurring Revenue (ARR), reaching $1.271 billion, with a constant currency growth rate of 12.5% excluding China [45][59]. - Subscription revenues grew 12% year-over-year, now representing 91% of total revenues, up from 88% in the prior year [53][54]. - Total revenues increased by 9% year-over-year, driven by strong subscription performance despite a decline in professional services revenues [57][75]. - Adjusted operating income with stock-based compensation was $90 million for the quarter, up 4% year-over-year, with a margin of 26.7% [64]. Business Line Data and Key Metrics Changes - The E365 programs were highlighted as a major growth driver, contributing significantly to ARR growth through upgrades and new accounts [46][59]. - The professional services segment saw a decline of 14% year-over-year, primarily due to delays in IBM Maximo related implementations [55][75]. - The asset analytics business is expected to add incremental revenue opportunities, although it currently contributes less than 50 basis points to ARR growth [60][94]. Market Data and Key Metrics Changes - The Americas region delivered strong growth, particularly in North America, while Asia Pacific also showed robust performance, especially in Southeast Asia and India [50][51]. - China’s contribution to ARR has decreased to approximately 2.5%, down from 3% a year ago, due to soft economic conditions and geopolitical tensions [45][59]. - The public works/utilities sector remains a key growth driver, benefiting from global infrastructure spending [49]. Company Strategy and Development Direction - The company is focusing on enhancing its digital twin capabilities and integrating AI into its product offerings, which is expected to open new monetization opportunities [39][41]. - The acquisition of Cesium is seen as a strategic move to enhance 3D geospatial capabilities and expand the customer base [36][26]. - The company aims to maintain a consistent annual margin improvement of 100 basis points while investing in long-term initiatives [66][74]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing visibility and linearity of ARR growth, with expectations for continued strong performance in Q4 [9][74]. - The sentiment in the U.S. engineering sector remains positive, with firms expecting higher backlogs and optimistic financial outlooks [48]. - The company anticipates that the upcoming U.S. elections may not significantly disrupt infrastructure investment priorities, which are expected to remain bipartisan [90][91]. Other Important Information - The company has entered into a new five-year senior secured credit agreement, providing increased flexibility for capital allocation and debt management [71][72]. - The company is raising its cash flow conversion expectations for the year from 80% to 85% due to strong cash collections and profitability [75][68]. Q&A Session Summary Question: About the Year in Infrastructure Conference and AI capabilities - Management indicated that the asset analytics portfolio represents an incremental opportunity for AI-enabled digital twins, while existing products will also benefit from enhanced interoperability and new features [80][82]. Question: Growth drivers for next year - Management expects next year to be consistent with this year, driven by project backlogs and the asset analytics business, with a focus on maintaining low double-digit ARR growth [85][86]. Question: Impact of U.S. elections on project sentiment - Management noted that the IIJA provides visibility for infrastructure spending, and there is optimism about bipartisan support for infrastructure investment [89][90]. Question: Contribution of Cesium to ARR - Management clarified that while Cesium's financial impact is currently minimal, its strategic importance and user engagement are significant [94][96]. Question: Drivers of SMB growth - Management highlighted the success of Virtuosity subscriptions in attracting new SMB accounts, indicating a deep market for these services [97][100]. Question: Water infrastructure demand - Management acknowledged a long-term growth trend in water infrastructure, with a global uptick in orders, although it is not concentrated in the U.S. [102]. Question: Changes in customer selection criteria - Management noted that customers are increasingly prioritizing data management and interoperability, which aligns with the company's open approach [106][108].

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ Title of each class Trading Symbol Name of each exchange on which registered Class B Common Stock, $0.01 Par Value BSY The Nasdaq Stock Market LLC FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH ...

Core Viewpoint - Bentley Motors is delaying its target to exclusively offer all-electric vehicles until at least 2035 due to changing market conditions and low demand from current customers [2][3]. Group 1: Company Strategy - Bentley has an ambition to build only fully electric cars from 2035, but this timeline has been adjusted in response to market dynamics [2]. - The company plans to continue focusing on plug-in hybrid electric vehicles until the revised target date [1]. Group 2: Market Demand and Legislation - Current demand for electric vehicles (EVs) from Bentley's existing customer base is low, prompting the need for a revised strategy [2][3]. - Legislation and competition are significant factors driving the need for electrification in the automotive industry [3]. Group 3: Historical Context - Bentley initially announced plans to exclusively offer all-electric vehicles by the end of this decade in 2020, but these plans have faced delays [3]. - The former CEO indicated that the timeline would be pushed back by a few years without specifying a new timeframe [3].

For the quarter ended September 2024, Bentley Systems, Incorporated (BSY) reported revenue of $335.17 million, up 9.3% over the same period last year. EPS came in at $0.24, compared to $0.22 in the year-ago quarter.The reported revenue represents a surprise of -1.40% over the Zacks Consensus Estimate of $339.93 million. With the consensus EPS estimate being $0.25, the EPS surprise was -4.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they comp ...