Bentley Systems Reports Strong Third Quarter 2023 Operating Results with 14.3% Revenue Growth

Bentley Systems, Incorporated

EXTON, PA — Bentley Systems, Incorporated (NASDAQ: BSY), a leading global provider of comprehensive software solutions for advancing infrastructure, has recently announced its operating results for the third quarter and nine months ended September 30, 2023.

The company reported total revenues of $306.6 million for Q3 2023, marking a 14.3% increase year-over-year, or 11.0% on a constant currency basis. Subscription revenues also experienced a considerable boost, rising by 15.1% to reach $270.8 million, or 11.7% on a constant currency basis. Bentley Systems’ Annualized Recurring Revenues (ARR) stood at $1,124.8 million as of September 30, 2023, representing a significant increase from $983.7 million as of September 30, 2022, and reflecting a constant currency ARR growth rate of 12.5%.

The company’s operating income margin improved to 24.0%, up from 20.7% for the same period last year. Meanwhile, Adjusted Operating Income inclusive of stock-based compensation expense (Adjusted OI w/SBC) margin rose to 28.2% from 24.9% for the same period last year.

Bentley Systems also noted an increase in net income per diluted share, which went from $0.12 in Q3 2022 to $0.16 in Q3 2023. The company’s Adjusted EPS also rose to $0.22 from $0.19 over the same period. Cash flow from operations was reported at $72.8 million, compared to $69.5 million for the same period last year.

CEO Greg Bentley commented on the company’s strong performance. “Our operating results this quarter demonstrate the sustainability of our more broadly balanced growth contributors,” he said. Bentley also highlighted the company’s robust ARR growth rate and credited ongoing growth drivers such as the Infrastructure Investment and Jobs Act in the U.S., expansion of E365, and Virtuosity’s momentum in penetrating small and medium-sized business prospects.

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COO Nicholas Cumins also expressed satisfaction with the Q3 2023 operating results. He stated, “Our 23Q3 operating results reflect continued strong performance, with trends generally in line with the previous quarter.” Cumins further added that ARR growth by sector was led by Public Works / Utilities and by region was led by Americas, followed by Asia Pacific, then EMEA.

For the nine months ended September 30, 2023, Bentley Systems reported total revenues of $917.8 million, up 13.0% year-over-year, or 12.8% on a constant currency basis. Subscription revenues for the period were $807.8 million, up 14.0% year-over-year, or 13.6% on a constant currency basis. The company’s net income per diluted share was consistent at $0.46, while its Adjusted EPS rose to $0.72 from $0.66 for the same period last year. Cash flow from operations stood at $329.6 million, compared to $238.2 million for the same period last year.

These positive results signify Bentley Systems’ steady growth trajectory and its successful execution of strategic initiatives aimed at maximizing shareholder value. The company’s focus on key growth drivers, coupled with its ability to capitalize on market opportunities, continues to yield impressive financial results, making it an attractive prospect for investors.

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