Bentley Systems (BSY) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with revenues, ARR, and profitability all doubling since 2020, driven by robust subscription and recurring revenue models.

• 2025 outlook projects continued low double-digit ARR growth, 100 basis points of margin expansion, and strong cash flow generation.

• Organizational changes include a new COO from Google, consolidation of product development under the CTO, and restructuring to accelerate AI-driven innovation.

• Subscriptions now represent over 90% of total revenues, with high retention rates and recurring revenues.

• Net income per diluted share was $0.16 in Q4 and $0.72 for the year; adjusted EPS was $0.21 in Q4 and $1.07 for the year.

Financial highlights

• Full-year 2024 revenues reached $1,353M, up 10–13% year-over-year; Q4 revenues were $350M, up 12.6–13%.

• Subscription revenues grew 13–16% for the year, now representing 90–91% of total revenues.

• Adjusted operating income with SBC was $372M for the year (27.5% margin, up 110 bps), and $75M for Q4 (21.5% margin).

• Free cash flow for 2024 was $435M, up 4% year-over-year, with a CAGR of 18.5% since 2020.

• ARR at Q4-end was $1,283M, with 12% year-over-year growth and a 16.3% CAGR since 2020.

Outlook and guidance

• 2025 GAAP revenue guidance: $1,461M–$1,490M (reported), $1,481M–$1,510M (constant currency).

• Subscription and ARR growth expected at 10.5%–12.5% in constant currency.

• Adjusted operating income margin with SBC expected at ~28.5%, continuing 100 bps annual expansion.

• Free cash flow guidance: $415M–$455M, with 55–60% generated in H1 2025.

• Stock-based compensation to decline to ~5% of revenues in 2025.