EXTON, PA — Bentley Systems, Inc. (Nasdaq: BSY), a global leader in infrastructure engineering software, posted strong fourth-quarter and full-year results for 2023, ending December 31. The results were backed by steady growth in subscriptions and annual recurring revenues, signaling a solid financial performance amid increasingly digital infrastructure engineering markets.
For the fourth quarter of 2023, Bentley Systems recorded total revenues of $310.6 million, marking an 8.3% growth year-over-year. Even more promising was the growth in the company’s subscription revenues, which rose by 8.3% to $272.5 million. More impressively, annual recurring revenues (ARR) reached $1,174.8 million, a significant increase from the previous year’s $1,036.5 million, indicating a constant currency ARR growth rate of 12.5%.
For the entire 2023, the company reported total revenues of $1.228 billion, representing an 11.8% growth over the previous year. Subscription revenues were up by 12.5%, hitting $1.080 billion. The positive results suggest a successful combination of a favorable market and strong operational strength.
CEO Greg Bentley attributed the company’s impressive performance to the strength of its operations and auspicious infrastructure engineering markets. He expressed his confidence in sustaining consistent growth for 2024, aided by a focus on acquisitions in the asset analytics space. With this strategy, Bentley hopes to tap into the power of AI to proliferate ‘instant-on’ infrastructure digital twins at scale.
COO Nicholas Cumins echoed this sentiment, recognizing the substantial contributions of the Bentley team to the solid financial results. Looking ahead, the COO plans to step up marketing efforts, continue the adoption of digital twin technology throughout Bentley Infrastructure Cloud and modeling and simulation applications.
On the financial front, CFO Werner Andre assures stakeholders of the company’s sturdy financial outlook, citing continued favorable market conditions and growth initiatives. Andre also mentioned plans to raise dividends, continue share buybacks, and pursue strategic acquisitions to expand the AI-driven asset analytics business.
Bentley Systems unveiled a financial outlook for 2024 predicting robust growth. The company expects total revenues in the range of $1.35 to $1.375 billion and constant currency ARR growth rate of 10.5% to 13%. This projection reflects the company’s confidence in its growth strategy, grounded in clear market trends and the buoyant demand for its offerings.
Despite the tangible figures and projections, prospective investors should note that the 2024 outlook includes non-GAAP financial measures, making it susceptible to various business, economic, regulatory, and competitive uncertainties.
To further sweeten the deal for investors, the company’s Board of Directors has declared an increased quarterly cash dividend. From the first quarter of 2024, stockholders are set to receive a higher quarterly dividend of $0.06 per share, reflecting the Board’s optimism in the company’s sustained growth and robust financial health.
Ultimately, Bentley Systems’ strong performance attests to the company’s strategic operations amid the digital revolution in the infrastructure engineering sector. With a focus on AI and digital twin technology, the company is set to ride the wave of digital transformation. However, investors are reminded to consider the inherent uncertainties associated with forward-looking financial information.
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