EXTON, PA — Bentley Systems, Incorporated (Nasdaq: BSY) has released its financial results for the second quarter ending June 30, 2024, showing significant growth and performance improvements.
Second Quarter Highlights
Bentley Systems reported total revenues of $330.3 million for Q2 2024, an 11.3% increase from the previous year. On a constant currency basis, this represents an 11.9% growth. Subscription revenues rose to $297.4 million, a 14.7% increase, marking a 15.3% rise on a constant currency basis. Annualized Recurring Revenues (ARR) reached $1,215.9 million, up from $1,105.9 million in Q2 2023, reflecting an 11% growth rate.
The company’s operating income margin increased to 24.3%, up from 18.0% in the same period last year. Adjusted operating income, including stock-based compensation, saw a margin of 28.8%, compared to 24.7% last year. Net income per diluted share was $0.22, up from $0.15, while adjusted net income per diluted share rose to $0.31 from $0.24.
Cash flows from operations for the quarter were $62.6 million, down from $80.6 million in the previous year.
First Half of 2024 Performance
For the first six months of 2024, Bentley reported total revenues of $668.1 million, up 9.3% year-over-year. On a constant currency basis, this reflects a 9.5% growth. Subscription revenues grew to $604.5 million, a 12.6% increase. The operating income margin for the first half was 25.8%, compared to 19.5% last year. Adjusted operating income margin, including stock-based compensation, was 31.1%, up from 26.8%.
Net income per diluted share for the first half of 2024 was $0.44, compared to $0.29 last year. Adjusted EPS was $0.62, up from $0.49. Cash flows from operations totaled $267.6 million, an increase from $256.8 million in the same period last year.
Executive Commentary
Greg Bentley, now Executive Chair, expressed satisfaction with the company’s performance. “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.”
Newly appointed CEO Nicholas Cumins highlighted the company’s strong foundation. “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.”
Cumins also noted the promising future for AI-based solutions in infrastructure. “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.”
CFO Werner Andre emphasized the solid financial positioning. “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.”
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.
Bentley Systems’ strong Q2 results and strategic executive changes position the company favorably for continued growth and innovation in the infrastructure engineering sector.
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