EXTON, PA — Bentley Systems, Incorporated (Nasdaq: BSY), a leading global provider of comprehensive software solutions for advancing infrastructure, disclosed an encouraging start to 2024, reflecting continued growth and increased profitability. For the quarter ending March 31, 2024, the company reported a 7.4% increase in total revenues, reaching $337.8 million, with subscription revenues—accounting for 91% of total revenues—up by 10.5% to $307.1 million.
In an era where digital transformation is paramount, Bentley Systems’ Annualized Recurring Revenues (ARR) grew by 11% year-over-year to $1,186.5 million, demonstrating the company’s robust position in the infrastructure software market. The firm also recorded an improved operating income margin of 27.2%, up from 20.9% in the prior year, and a net income per diluted share of $0.22, highlighting its operational efficiency and profitability.
Coinciding with its 40th anniversary, Bentley Systems announced a significant leadership transition. Greg Bentley, who has steered the company since its inception, will pass the CEO baton to Chief Operating Officer Nicholas Cumins on July 1, 2024, assuming the role of Executive Chair. This move marks a generational shift in leadership, aimed at sustaining the company’s growth trajectory and capitalizing on the opportunities presented by infrastructure digital twins—a technology integral to improving infrastructure delivery and performance.
Greg Bentley expressed satisfaction with the quarter’s performance, stating, “Profitability and operating cash flow started the year ahead of our expected pace,” despite challenges faced by the company’s digital integrator Cohesive’s professional services business. He also highlighted the strategic importance of the leadership transition, emphasizing that it enables Bentley Systems to pursue transformative growth opportunities in the digital twin space.
Nicholas Cumins, the incoming CEO, expressed gratitude for the trust placed in him and reiterated the company’s commitment to addressing the infrastructure sector’s pressing challenges, including the engineering resource capacity gap. Underlining the significance of Bentley Systems’ focus on Public Works / Utilities and Resources segments, Cumins pointed out the consistency in the company’s performance and its readiness to tackle future challenges.
Werner Andre, Bentley Systems’ CFO, reflected on the company’s financial health, noting the strong start to the year, which positions Bentley well for achieving its full-year outlook. He emphasized the strategic financial maneuvers undertaken to de-lever the company’s balance sheet and protect it from interest rate fluctuations, ensuring readiness for dividends, share repurchases, and mergers and acquisitions.
Bentley Systems’ first-quarter results and strategic leadership transition underscore its unwavering commitment to innovation and excellence in the digital transformation of infrastructure. With a solid foundation in subscription-based revenues and a forward-looking approach to leadership and technology, Bentley Systems is poised for continued success and growth in the evolving global infrastructure landscape.
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