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Revenue Performance - Total revenues for the three months ended September 30, 2024, were $335,173, representing a 9.3% increase compared to the same period in 2023[133]. - Subscription revenues for the three months ended September 30, 2024, were $303,239, up 12.0% year-over-year[133]. - Annual Recurring Revenue (ARR) as of September 30, 2024, was $1,270,726, reflecting a 12% growth rate in constant currency compared to the previous year[133]. - Revenues from the Americas for the three months ended September 30, 2024, were $175,609, an increase of 8.2% year-over-year[145]. - EMEA revenues for the three months ended September 30, 2024, were $95,343, reflecting a 9.6% increase compared to the same period in 2023[145]. - APAC revenues for the three months ended September 30, 2024, were $64,221, up 12.1% year-over-year[145]. - Total revenues for the nine months ended September 30, 2024, were $1,003,273, with a constant currency adjustment resulting in $1,002,382[200]. - Subscription revenues for the nine months ended September 30, 2024, were $907,772, adjusted to $906,988 in constant currency[200]. Operating Income and Expenses - Operating income for the three months ended September 30, 2024, was $68,630, a decrease from $73,679 in the same period of 2023[133]. - Total cost of revenues for the three months ended September 30, 2024, was $64,832, a slight increase of 0.2% compared to the same period in 2023[154]. - Research and development expenses for the three months ended September 30, 2024, increased by 7.0% to $70,068, primarily due to headcount-related costs[158]. - Selling and marketing expenses for the three months ended September 30, 2024, increased by 20.8% to $64,940, driven by higher headcount-related costs[162]. - General and administrative expenses for the three months ended September 30, 2024, increased by 20.3% to $51,359, mainly due to increased headcount-related costs and higher charitable contributions[163]. - Total operating expenses for the three months ended September 30, 2024, increased by 19.9% to $201,711 compared to the same period last year[158]. - Operating expenses for the three months ended September 30, 2024, totaled $201,711 million, compared to $168,257 million for the same period in 2023, indicating a significant increase[203]. Cash Flow and Liquidity - Cash flows from operations for the nine months ended September 30, 2024, were $353,660, compared to $329,643 for the same period in 2023[133]. - Cash and cash equivalents as of September 30, 2024, amounted to $72,175 million, up from $68,412 million at the end of 2023[204]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $353,660 million, an increase of $24,017 million compared to $329,643 million in the prior year[208]. - Net cash used in investing activities increased to $135,680 million for the nine months ended September 30, 2024, primarily due to higher acquisition-related payments[209]. - The company plans to continue funding acquisitions and growth investments through cash generated from operations and available liquidity under the Credit Facility[205]. Debt and Financing - Long-term debt as of September 30, 2024, was $1,418,870 million, down from $1,518,403 million at the end of 2023[212]. - On October 18, 2024, the company entered into a $1,300,000 revolving credit facility, including $125,000 in swingline loans and $125,000 in letters of credit[214]. - The company has a $500,000 "accordion" feature to increase the credit facility in the form of revolving indebtedness and/or incremental term loans[214]. - As of September 30, 2024, the company was in compliance with all covenants under the Credit Facility and the 2026 and 2027 Notes[213]. Shareholder Returns - The quarterly dividend per share increased to $0.06 in 2024 from $0.05 in 2023, resulting in higher dividend payments[210]. - Quarterly dividends paid were $0.06 per share during the nine months ended September 30, 2024, up from $0.05 per share in the same period of 2023[220]. - The Board of Directors authorized a stock repurchase program of up to $200,000 for Class B common stock and/or outstanding convertible senior notes, extended through June 30, 2026[215]. - The company repurchased 912,737 shares for $45,769 during the nine months ended September 30, 2024, compared to no repurchases in the same period of 2023[216]. - Future dividend payments will depend on various factors, including results of operations and capital requirements, and are subject to limitations under the Credit Facility[220]. Retention and Growth Metrics - The dollar-based net retention rate for recurring revenues was 109% as of September 30, 2024, slightly down from 110% in the prior year[133]. - The account retention rate for the twelve months ended September 30, 2024, was 99%, an increase from 97% in the prior year[172]. - The recurring revenues dollar-based net retention rate was a key metric, indicating the company's ability to retain and grow recurring revenues from existing accounts[183]. - The account retention rate is a critical metric for evaluating long-term account relationships, demonstrating the company's ability to maintain its account base[181]. - The company continues to focus on growing recurring revenues within existing accounts, as evidenced by the increase in the dollar-based net retention rate[185]. Tax and Interest - The effective tax rate for the three months ended September 30, 2024, was 28.1%, up from 23.7% in the same period last year, primarily due to decreased discrete tax benefits[168]. - The company reported a net interest expense decrease of 53.5% for the three months ended September 30, 2024, totaling $(4,669) due to lower average debt outstanding[166]. Non-GAAP Measures - Non-GAAP financial measures, including adjusted operating income, are used to provide investors with a clearer view of operational performance[186]. - Adjusted operating income for the three months ended September 30, 2024, was $105,419, compared to $104,366 for the same period in 2023, reflecting operational strength[193]. Market Risk and Other Considerations - There have been no material changes in the company's market risk exposure as described in the 2023 Annual Report[222]. - The impact of foreign exchange on total revenues was a consideration, with adjustments made to present results in constant currency for better comparability[196]. - The timing and value of shares repurchased under the Repurchase Program will depend on market conditions and the company's assessment of intrinsic value[217]. - The company recognized approximately $6,200 in costs associated with internal-use system implementations during the nine months ended September 30, 2024[164]. - The amortization of purchased intangibles decreased by 12.1% for the three months ended September 30, 2024, due to fully amortized intangible assets[165].

Core Viewpoint - Bentley Motors is delaying its target to exclusively offer all-electric vehicles until at least 2035 due to changing market conditions and low demand from current customers [2][3]. Group 1: Company Strategy - Bentley has an ambition to build only fully electric cars from 2035, but this timeline has been adjusted in response to market dynamics [2]. - The company plans to continue focusing on plug-in hybrid electric vehicles until the revised target date [1]. Group 2: Market Demand and Legislation - Current demand for electric vehicles (EVs) from Bentley's existing customer base is low, prompting the need for a revised strategy [2][3]. - Legislation and competition are significant factors driving the need for electrification in the automotive industry [3]. Group 3: Historical Context - Bentley initially announced plans to exclusively offer all-electric vehicles by the end of this decade in 2020, but these plans have faced delays [3]. - The former CEO indicated that the timeline would be pushed back by a few years without specifying a new timeframe [3].

Core Insights - Bentley Systems, Incorporated (BSY) reported revenue of $335.17 million for the quarter ended September 2024, reflecting a year-over-year growth of 9.3% [1] - The earnings per share (EPS) for the quarter was $0.24, an increase from $0.22 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $339.93 million by 1.40%, and the EPS fell short of the consensus estimate of $0.25 by 4.00% [1] Revenue Performance - Total revenue growth year-over-year was 9.3%, compared to the average estimate of 10.8% from three analysts [3] - Annualized Recurring Revenues (ARR) reached $1.27 billion, slightly above the two-analyst average estimate of $1.25 billion [3] - Subscription revenue grew by 12% year-over-year, but was below the average estimate of 12.9% from two analysts [3] - Total revenues from subscriptions and licenses were reported at $314.51 million, compared to the three-analyst average estimate of $316.17 million [3] - Service revenues were $20.66 million, which is a decline of 13.8% year-over-year and below the average estimate of $23.54 million from three analysts [3] - Subscription revenues amounted to $303.24 million, slightly below the two-analyst average estimate of $305.61 million, with a year-over-year increase of 12% [3] - Revenues from perpetual licenses were $11.27 million, exceeding the two-analyst average estimate of $11 million, but reflecting a year-over-year decline of 5.2% [3] Stock Performance - Over the past month, shares of Bentley Systems have returned +2%, while the Zacks S&P 500 composite has seen a +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Group 1: Earnings Performance - Bentley Systems reported quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.25 per share, but showing an increase from $0.22 per share a year ago, representing an earnings surprise of -4% [1] - The company posted revenues of $335.17 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.40%, compared to year-ago revenues of $306.61 million [2] - Over the last four quarters, Bentley Systems has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Bentley Systems shares have lost about 4.3% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $0.25 for the coming quarter and $1.10 for the current fiscal year [4][7] - The estimate revisions trend for Bentley Systems is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Internet - Software industry, to which Bentley Systems belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Exhibit 99.1 Bentley Systems Announces Third Quarter 2024 Results EXTON, PA – November 7, 2024 – Bentley Systems, Incorporated (Nasdaq: BSY), the infrastructure engineering software company, today announced results for the quarter ended September 30, 2024. Third Quarter 2024 Results • Total revenues were $335.2 million, up 9.3% or 9.1% on a constant currency basis, year-over-year; • Subscriptions revenues were $303.2 million, up 12.0% or 11.8% on a constant currency basis, year-over-year; • Annualized Recur ...

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Investors might want to bet on Bentley Systems, Incorporated (BSY) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and fol ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ Title of each class Trading Symbol Name of each exchange on which registered Class B Common Stock, $0.01 Par Value BSY The Nasdaq Stock Market LLC FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...