Bentley Systems, Incorporated (BSY) Bundle
A Brief History of Bentley Systems
Bentley Systems, Incorporated, established in 1984, focuses on providing software solutions for the infrastructure engineering sector. The company has grown significantly over the years, evolving its product offerings to meet the changing needs of its clients worldwide.
Company Overview
As of September 30, 2024, Bentley Systems reported total revenues of $1,003,273 for the nine months ended, representing a growth of 9.3% compared to the same period in 2023. The company’s subscription revenues were $907,772, an increase of 12.4% year-over-year.
Financial Performance
For the three months ended September 30, 2024, Bentley’s total revenues were $335,173, also reflecting a 9.3% increase from the previous year. Operating income for the same period was $68,630, showing a slight decline from $73,679 in 2023. However, adjusted operating income with stock-based compensation (SBC) increased to $89,524 from $86,327.
Key Financial Metrics
| Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Total Revenues | $1,003,273 | $917,772 | +9.3% |
| Subscription Revenues | $907,772 | $807,839 | +12.4% |
| Operating Income | $240,738 | $192,769 | +24.8% |
| Net Income | $184,694 | $147,202 | +25.5% |
| Cash Flows from Operations | $353,660 | $329,643 | +7.3% |
Stock Performance
As of September 30, 2024, Bentley Systems had a diluted net income per share of $0.57, compared to $0.46 in the same period last year. The company’s stock repurchase program, which allows for up to $200,000 of Class B common stock repurchases, has been actively utilized, with 912,737 shares repurchased for $45,769 during the nine months ended September 30, 2024.
Debt and Capital Structure
As of September 30, 2024, Bentley's total debt stood at $1,418,870, down from $1,528,403 at the end of 2023. The company has maintained compliance with all covenants under its credit facilities, demonstrating strong financial discipline.
Future Outlook
Bentley Systems continues to invest in technology and infrastructure solutions, focusing on artificial intelligence and digital twin technologies to enhance their product offerings. The annual recurring revenue (ARR) as of September 30, 2024, was $1,270,726, representing a growth rate of 12% year-over-year.
Dividends
The company has consistently paid dividends, declaring $0.06 per share for each quarter in 2024, compared to $0.05 per share in 2023. Total dividends paid for the nine months ended September 30, 2024, amounted to $53,985.
Key Business Metrics
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Annual Recurring Revenue (ARR) | $1,270,726 | $1,124,774 |
| Last Twelve-Month Recurring Revenues | $1,195,118 | $1,076,434 |
| Recurring Revenues Dollar-Based Net Retention Rate | 109% | 110% |
| Account Retention Rate | 99% | 97% |
Conclusion
Bentley Systems has demonstrated robust growth and resilience in its financial performance, with strategic investments paving the way for future advancements and sustainability in the infrastructure engineering sector.
A Who Owns Bentley Systems, Incorporated (BSY)
Ownership Structure
Bentley Systems, Incorporated (BSY) has a dual-class share structure, consisting of Class A and Class B common stock. As of September 30, 2024, the total shares outstanding are:
| Share Class | Shares Outstanding | Par Value |
|---|---|---|
| Class A Common Stock | 11,537,627 | $0.01 |
| Class B Common Stock | 290,505,175 | $0.01 |
Major Shareholders
The following table outlines the major shareholders of Bentley Systems as of 2024, including institutional and individual ownership:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| Institutional Investors | Approximately 80% | Institutional |
| Individual Insiders | Approximately 5% | Individual |
| Public Float | Approximately 15% | Public |
Financial Performance
For the nine months ended September 30, 2024, Bentley Systems reported the following financials:
| Metric | Value |
|---|---|
| Total Revenues | $1,003,273,000 |
| Operating Income | $240,738,000 |
| Net Income | $184,694,000 |
| Cash Flows from Operations | $353,660,000 |
Stock Performance
As of September 30, 2024, the stock performance metrics for Bentley Systems are as follows:
| Metric | Value |
|---|---|
| Market Capitalization | $3,396,487,000 |
| Net Income per Share (Diluted) | $0.57 |
| Dividend Declared (2024) | $0.06 per share |
Employee Stock Purchase Plan
During the nine months ended September 30, 2024, Bentley Systems' employees purchased shares through the Global Employee Stock Purchase Plan (ESPP) as follows:
| Year | Shares Purchased | Cash Proceeds |
|---|---|---|
| 2024 | 253,578 | $11,228,000 |
| 2023 | 315,840 | $9,988,000 |
Debt and Equity Structure
As of September 30, 2024, Bentley Systems' long-term debt structure is as follows:
| Debt Type | Amount |
|---|---|
| Convertible Senior Notes | $687,830,000 |
| Term Loan | $50,000,000 |
| Total Long-term Debt | $1,418,870,000 |
Overall, Bentley Systems maintains a strong presence in the infrastructure engineering software sector, with a significant portion of ownership held by institutional investors and a stable financial performance reflecting its operational effectiveness.
Bentley Systems, Incorporated (BSY) Mission Statement
Bentley Systems, Incorporated is committed to advancing the world’s infrastructure for better quality of life. Their mission focuses on empowering people to design, build, and operate better and more resilient infrastructure through the adoption of intelligent digital twin solutions.
Financial Overview
As of September 30, 2024, Bentley Systems reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $335,173,000 | $306,612,000 | 9.3% |
| Subscription Revenues | $303,239,000 | $270,751,000 | 12.0% |
| Operating Income | $68,630,000 | $73,679,000 | -6.2% |
| Net Income | $42,338,000 | $53,027,000 | -20.2% |
| Adjusted Operating Income w/SBC | $89,524,000 | $86,327,000 | 2.5% |
Annual Recurring Revenue (ARR)
Bentley Systems reported an ARR of $1,270,726,000 as of September 30, 2024, reflecting a growth rate of 12% compared to $1,124,774,000 in the previous year.
Geographic Revenue Breakdown
Revenue distribution by geographic region for the three months ended September 30, 2024 is as follows:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Americas | $175,609,000 | $162,367,000 | 8.2% |
| EMEA | $95,343,000 | $86,956,000 | 9.6% |
| APAC | $64,221,000 | $57,289,000 | 12.1% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Bentley Systems reported the following cash flow metrics:
| Cash Flow Category | 2024 | 2023 | Change ($) |
|---|---|---|---|
| Operating Activities | $353,660,000 | $329,643,000 | $24,017,000 |
| Investing Activities | ($135,680,000) | ($51,245,000) | ($84,435,000) |
| Financing Activities | ($213,218,000) | ($280,019,000) | $66,801,000 |
Stock Performance and Dividends
Bentley Systems declared a quarterly dividend of $0.06 per share in 2024, up from $0.05 in 2023. The total dividends declared for the third quarter of 2024 amounted to $18,134,000 compared to $14,768,000 in the same quarter of 2023.
Market Positioning
As of September 30, 2024, Bentley Systems held total liabilities of $2,362,477,000 against total stockholders’ equity of $1,034,010,000, demonstrating a leverage ratio indicative of its growth strategy in the infrastructure software market.
How Bentley Systems, Incorporated (BSY) Works
Business Model
Bentley Systems, Incorporated operates as a software company specializing in infrastructure engineering solutions. The company provides software applications for the design, construction, and operation of infrastructure projects, focusing on delivering intelligent digital twin solutions.
Financial Performance
For the three months ended September 30, 2024, Bentley Systems reported total revenues of $335,173 thousand, reflecting a 9.3% increase compared to the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $1,003,273 thousand, also up 9.3%.
Revenue Breakdown
| Revenue Source | Three Months Ended September 30, 2024 (in $ thousands) | Three Months Ended September 30, 2023 (in $ thousands) | Change (%) | Nine Months Ended September 30, 2024 (in $ thousands) | Nine Months Ended September 30, 2023 (in $ thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Subscriptions | 303,239 | 270,751 | 12.0% | 907,772 | 807,839 | 12.4% |
| Perpetual Licenses | 11,274 | 11,887 | (5.2%) | 31,649 | 33,152 | (4.5%) |
| Services | 20,660 | 23,974 | (13.8%) | 63,852 | 76,781 | (16.8%) |
| Total Revenues | 335,173 | 306,612 | 9.3% | 1,003,273 | 917,772 | 9.3% |
Operating Income
Operating income for the three months ended September 30, 2024, was $68,630 thousand, a decrease from $73,679 thousand in the same period of 2023. For the nine months ended September 30, 2024, operating income increased to $240,738 thousand from $192,769 thousand.
Adjusted Operating Income
Adjusted operating income with stock-based compensation for the three months ended September 30, 2024, was $89,524 thousand, compared to $86,327 thousand in 2023. For the nine months ended September 30, 2024, it rose to $297,162 thousand from $250,048 thousand.
Cash Flow
Cash flows from operations for the nine months ended September 30, 2024, were $353,660 thousand, compared to $329,643 thousand in the same period of 2023.
Debt and Equity
As of September 30, 2024, total debt stood at $1,418,870 thousand, down from $1,528,403 thousand in the prior year. The company had $732,149 thousand available under its credit facility.
Stock Performance
Bentley Systems' stock performance has been influenced by its operational results and market conditions. The company has a stock repurchase program authorized for up to $200,000 thousand, with $191,738 thousand available for future repurchases as of September 30, 2024.
Key Business Metrics
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Annual Recurring Revenue (ARR) | $1,270,726 | $1,124,774 |
| Last Twelve Months Recurring Revenues | $1,195,118 | $1,076,434 |
| ARR Growth Rate | 12% | 12.5% |
| Account Retention Rate | 99% | 97% |
| Recurring Revenues Dollar-Based Net Retention Rate | 109% | 110% |
Market Presence
Bentley Systems operates globally, with significant revenue contributions from the Americas, EMEA, and APAC regions. For the three months ended September 30, 2024, revenues by region were:
| Region | Revenue (in $ thousands) | Change (%) |
|---|---|---|
| Americas | 175,609 | 8.2% |
| EMEA | 95,343 | 9.6% |
| APAC | 64,221 | 12.1% |
Stockholder Equity
As of September 30, 2024, total stockholders' equity was $1,034,010 thousand, compared to $883,982 thousand at the end of the previous year.
How Bentley Systems, Incorporated (BSY) Makes Money
Revenue Streams
Bentley Systems generates revenue primarily through three main streams: subscriptions, perpetual licenses, and services.
| Revenue Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|---|---|
| Subscriptions | $303,239 | $270,751 | $907,772 | $807,839 | 12.0% |
| Perpetual Licenses | $11,274 | $11,887 | $31,649 | $33,152 | (5.2%) |
| Services | $20,660 | $23,974 | $63,852 | $76,781 | (13.8%) |
| Total Revenues | $335,173 | $306,612 | $1,003,273 | $917,772 | 9.3% |
Subscription Revenue Details
The subscription revenue segment is the largest contributor to Bentley's overall revenue, with a significant year-over-year increase. The breakdown of subscription revenues for Q3 2024 includes:
| Subscription Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Enterprise Subscriptions | $135,667 | $111,318 |
| SELECT Subscriptions | $64,607 | $63,406 |
| Term License Subscriptions | $102,965 | $96,027 |
Cost Structure
Bentley Systems' cost of revenues is categorized into costs associated with subscriptions and services. The total cost of revenues for Q3 2024 was:
| Cost Type | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) |
|---|---|---|
| Cost of Subscriptions and Licenses | $44,220 | $42,088 |
| Cost of Services | $20,612 | $22,588 |
| Total Cost of Revenues | $64,832 | $64,676 |
Profitability Metrics
For Q3 2024, Bentley reported the following profitability metrics:
| Metric | Q3 2024 Amount (in thousands) | Q3 2023 Amount (in thousands) |
|---|---|---|
| Operating Income | $68,630 | $73,679 |
| Adjusted Operating Income w/SBC | $89,524 | $86,327 |
| Net Income | $42,338 | $53,027 |
Geographic Revenue Distribution
Bentley Systems also generates revenue from different geographic regions. The revenue distribution for Q3 2024 is as follows:
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Americas | $175,609 | $162,367 | 8.2% |
| EMEA | $95,343 | $86,956 | 9.6% |
| APAC | $64,221 | $57,289 | 12.1% |
Cash Flow and Investments
For the nine months ended September 30, 2024, Bentley reported cash flows from operating activities of:
| Activity | Amount (in thousands) |
|---|---|
| Cash Flows from Operating Activities | $353,660 |
| Cash Flows from Investing Activities | ($135,680) |
| Cash Flows from Financing Activities | ($213,218) |
Debt and Equity Structure
As of September 30, 2024, Bentley Systems reported the following long-term debt amounts:
| Debt Type | Amount (in thousands) |
|---|---|
| Current Portion of Long-term Debt | $0 |
| Long-term Debt | $1,418,870 |
| Total Debt | $1,418,870 |
Bentley Systems, Incorporated (BSY) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Bentley Systems, Incorporated (BSY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bentley Systems, Incorporated (BSY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bentley Systems, Incorporated (BSY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.