EXTON, PA — Bentley Systems, Incorporated (Nasdaq: BSY) reported double-digit revenue growth in the first quarter as recurring subscription sales and demand from infrastructure and resource-sector customers continued to expand.
Total revenue increased 14.5% to $424.2 million for the quarter ended March 31, while subscription revenue rose 14.7% to $392.5 million. On a constant currency basis, total revenue increased 11.9%.
Annualized recurring revenue grew to approximately $1.49 billion from $1.32 billion a year earlier, while the company’s dollar-based net retention rate declined slightly to 109% from 110%.
Net income per diluted share increased to $0.30 from $0.28 a year earlier. Adjusted earnings per diluted share rose to $0.38 from $0.35.
Operating income margin declined to 29.8% from 31.1%, while adjusted operating margin excluding stock-based compensation fell to 33.2% from 34.6%.
Cash flow from operations declined to $193.4 million from $219.4 million in the prior-year quarter, while free cash flow fell to $187.9 million from $216.4 million.
Chief Executive Officer Nicholas Cumins pointed to growth in Bentley’s resources and public works businesses as key drivers of quarterly performance.
“The quarter was highlighted by the performance of our Resources business, which continues to be our fastest-growing sector, and by the steady demand from Public Works / Utilities,” Cumins said.
The company also continued expanding artificial intelligence initiatives tied to engineering software workflows and infrastructure design applications.
Executive Chair Greg Bentley described the company’s AI development strategy as focused on helping engineering firms apply proprietary design and operational data through customized AI systems.
Bentley also strengthened its balance sheet during and after the quarter. The company repaid convertible notes maturing in 2026 and later expanded its credit facility through a new $550 million term loan maturing in 2029.
The additional borrowing increased Bentley’s total credit facility capacity to $1.85 billion. The company used proceeds to repay portions of revolving debt outstanding under the facility.
Chief Financial Officer Werner Andre described the refinancing as a way to lower interest costs while increasing flexibility for acquisitions, dividends and share repurchases.
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