Bentley Systems Inc. Reports Strong Financial Performance for 2024
Bentley Systems Inc., a prominent player in infrastructure engineering software, has released its annual report for the year ended December 31, 2024. The results showcase impressive revenue growth and a solid strategic position in the market, highlighting the company's commitment to advancing infrastructure through innovative digital twin solutions.
1. Financial Highlights
For the fiscal year 2024, Bentley Systems reported total revenues of $1.35 billion, representing a 10.1% increase from the previous year. This growth is primarily attributed to a robust performance in subscriptions, which reached $1.22 billion, marking a 13.2% increase year-over-year. The company's Annual Recurring Revenue (ARR) stood at $1.28 billion as of December 31, 2024, with a 12% constant currency growth rate.
Operating Performance
Operating income for 2024 was $302.1 million, a significant increase from $230.5 million in 2023. Adjusted operating income, which includes stock-based compensation, also improved to $372.2 million compared to $324.7 million in the prior year. The company's net income was reported at $234.7 million, a decrease from $326.7 million in 2023, impacted by fluctuations in expenses and tax liabilities.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Net Income | 326.7M | 234.7M |
Net Income to Non-controlling Interest | 0 | -354K |
Profit | 326.7M | 234.4M |
Net Income Continuing | 326.7M | 234.3M |
Income Tax Expense | -143.2M | 58.72M |
Pretax Income | 183.5M | 293.0M |
Non-operating Income | -47.01M | -9.09M |
Operating Income | 230.5M | 302.1M |
Revenue | 1.22B | 1.35B |
Costs and Expenses | 997.8M | 1.05B |
Cost of Revenue | 266.0M | 257.7M |
Operating Expenses | 731.7M | 793.1M |
Depreciation, Depletion & Amortization | 38.51M | 33.99M |
Research & Development | 274.6M | 281.2M |
Selling, General & Administrative | 405.0M | 465.5M |
Other Operating Expenses | 13.58M | 12.38M |
2. Geographic Revenue Breakdown
Bentley Systems' revenue is globally diversified, with substantial contributions from different regions:
- Americas: $717 million (53% of total revenue)
- EMEA (Europe, the Middle East, and Africa): $388 million (29% of total revenue)
- APAC (Asia-Pacific): $248 million (18% of total revenue)
The Americas showed the most significant growth, primarily driven by subscription expansions in existing accounts. EMEA and APAC regions also demonstrated healthy growth rates of 9.85% and 10.62%, respectively.
3. Revenue by Products and Services
The growth in revenue can be attributed to various product categories:
- Licenses: $679.8 million (up 14.7%)
- E365 Subscriptions: $517.9 million (up 26.0%)
- Services: $83.8 million (down 17.9%)
- Other: $69.1 million (down 19.3%)
The notable rise in E365 subscriptions reflects Bentley's successful transition towards a subscription-based revenue model, which enhances predictability and stability in cash flows.
4. Balance Sheet Strength
The company's total assets as of December 31, 2024, amounted to $3.39 billion, a slight increase from $3.31 billion in 2023. Notably, total liabilities also rose to $2.35 billion, up from $2.43 billion the previous year, indicating effective management of financial obligations.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Total Assets | 3.31B | 3.39B |
Total Current Assets | 419.5M | 442.0M |
Cash and Equivalents | 68.41M | 64.00M |
Accounts Receivable | 293.5M | 314.4M |
Prepaid Expenses | 12.81M | 13.06M |
Other Current Assets | 44.79M | 50.53M |
Total Non-current Assets | 2.90B | 2.95B |
Intangible Assets | 2.51B | 2.58B |
Long-term Investments | 23.48M | 25.76M |
Non-current Deferred Tax Assets | 212.8M | 198.2M |
Net PP&E | 40.1M | 33.79M |
Lease Assets | 38.47M | 32.30M |
Other Non-current Assets | 67.28M | 86.44M |
Total Liabilities and Equity | 3.31B | 3.39B |
Total Liabilities | 2.43B | 2.35B |
Total Current Liabilities | 760.3M | 814.3M |
Accounts Payable and Accrued Liabilities | 484.9M | 556.9M |
Current Debt | 21.64M | 11.65M |
Current Deferred Revenue | 253.7M | 245.7M |
Total Non-current Liabilities | 1.67B | 1.54B |
Long-term Debt | 1.51B | 1.38B |
Non-current Accounts Payable and Accrued Liabilities | 7.33M | 3.61M |
Non-current Deferred Revenue | 15.86M | 16.64M |
Non-current Deferred Compensation | 88.18M | 96.68M |
Non-current Deferred Tax Liabilities | 9.71M | 8.61M |
Other Non-current Liabilities | 36.00M | 30.71M |
Total Equity and Non-controlling Interests | 883.9M | 1.04B |
Total Equity | 883.2M | 1.04B |
Non-controlling Interests | 704K | 133K |
Cash Flow Analysis
Bentley Systems reported a net cash provided by operating activities of $435.3 million, which reflects a minor increase from $416.7 million in 2023. However, the net change in cash was negative at $4.4 million for 2024, impacted by significant cash outflows in investing and financing activities, including acquisitions and share repurchases.
| Feb 2024 | Feb 2025 | |
|---|---|---|
Net Change in Cash | -3.27M | -4.40M |
Effect of Exchange Rate Changes | -390K | -6.57M |
Net Cash from Operating Activities | 416.6M | 435.2M |
Operating Profit | 326.7M | 234.4M |
Adjustment to Operating Profit | 89.90M | 200.8M |
Net Cash from Investing Activities | -60.50M | -143.2M |
Business & Interest in Affiliates | 26.02M | 130.4M |
Investments | 9.47M | 1.43M |
Productive Assets | 25.00M | 14.04M |
Other Investing Activities | 0 | 2.62M |
Net Cash from Financing Activities | -359.0M | -289.8M |
Debt | -258.5M | -146.7M |
Dividends | 58.75M | 72.11M |
Equity Issuance/Repurchase | 21.70M | -49.12M |
Other Financing Activities | -63.45M | -21.89M |
5. Strategic Developments and Challenges
The company continues to pursue growth through strategic acquisitions, such as PLS and Seequent, contributing to its competitive edge in infrastructure solutions. However, Bentley Systems faced challenges in 2024, including currency exchange rate impacts and declining service revenues, which necessitated adjustments in strategic focus.
Future Outlook
Looking ahead, Bentley Systems is well-positioned to capitalize on the growing demand for digital infrastructure solutions. With a solid ARR growth rate, a focus on subscription models, and continued investment in technology and acquisitions, the company aims to enhance its offerings and sustain growth.
6. Conclusion
Bentley Systems Inc.'s 2024 annual report underscores a year of resilient performance amid challenges. As the company continues to innovate and expand its footprint in the infrastructure engineering sector, stakeholders remain optimistic about its future trajectory and growth potential.
