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 recurring revenue and subscription models, despite headwinds in China.

• Subscriptions now constitute 90–91% of total revenues, enhancing revenue visibility and consistency.

• 2024 marked the successful CEO succession and further organizational changes, including the appointment of James Lee as COO and consolidation of product development under the CTO to accelerate innovation, especially in AI.

• Strategic acquisition of Cesium broadened the platform ecosystem, especially in geospatial digital twin capabilities.

• The company continues to benefit from favorable secular trends in infrastructure engineering and digital transformation.

Financial highlights

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

• Subscription revenues grew 13.2% for the year and 15.8–16% in Q4; now 90–91% of total revenues.

• Adjusted operating income with SBC for 2024 was $372M, up 15%, with a margin of 27.5%.

• Free cash flow for 2024 was $435M, up 4% year-over-year.

• ARR at Q4-end was $1,283M; trailing 12-month ARR growth was 12% year-over-year.

Outlook and guidance

• 2025 outlook projects total GAAP revenues of $1,461M–$1,490M, or $1,481M–$1,510M in constant currency.

• Subscription revenue growth expected at 10.5%–12.5% in constant currency; perpetual and services revenues to remain flat.

• ARR growth outlook is 10.5%–12.5%, with China expected to remain a drag.

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

• Free cash flow guidance for 2025 is $415M–$455M.