Bentley(BSY) - 2024 Q4 - Annual Report

Revenue Performance - Total revenues for the year ended December 31, 2024, were $1,353,095, representing a 10.1$1,223,362 for the year ended December 31, 2024, up 13.2% from the previous year[188]. - Annual Recurring Revenue (ARR) reached $1,283,256 as of December 31, 2024, reflecting a constant currency ARR growth rate of 12$717,002 for the year ended December 31, 2024, a growth of 10.2% compared to the prior year[199]. - EMEA revenues rose to $388,384 for the year ended December 31, 2024, reflecting a 9.9$247,709 for the year ended December 31, 2024, marking a 10.6% increase compared to the prior year[199]. - Recurring revenues represented 91% of total revenues for the twelve months ended December 31, 2024[248]. Operating Income and Expenses - Operating income for the year ended December 31, 2024, was $302,150, compared to$230,542 for the prior year[188]. - Cash flows from operations amounted to $435,292 for the year ended December 31, 2024, compared to$416,696 for the prior year[188]. - Total cost of revenues decreased by 3.1% to $257,767 million compared to$266,083 million in 2023, with a constant currency growth of 12.3%[207]. - Cost of subscriptions and licenses increased by 2.3% to $173,340 million in 2024, primarily due to a rise in cloud-related costs of$10,859 million[209]. - Research and development expenses rose by 2.4% to $281,247 million in 2024, driven by an increase in headcount-related costs of$9,513 million[215]. - Selling and marketing expenses increased by 13.7% to $255,177 million in 2024, mainly due to higher headcount-related costs of$23,408 million and promotional costs of $5,449 million[218]. - General and administrative expenses grew by 16.4$210,374 million in 2024, influenced by an increase in headcount-related costs of $11,048 million and higher charitable contributions of$4,143 million[220]. Net Income and Taxation - Income before income taxes for 2024 was $293,055 million, significantly higher than$183,527 million in 2023[229]. - The effective tax rate for 2024 was 20.0%, up from a negative 78.0% in 2023, primarily due to a discrete tax benefit recognized from internal legal entity restructuring[229]. Cash Flow and Financing - Total cash and cash equivalents decreased to $64,009 in 2024 from$68,412 in 2023[261]. - Net cash provided by operating activities for the year ended December 31, 2024, was $435,292, an increase of$18,596 compared to $416,696 in 2023[265]. - Net cash used in investing activities increased to$(143,267) in 2024, primarily due to higher acquisition-related payments of $104,384[267]. - Net cash used in financing activities decreased to$(289,850) in 2024, with lower net paydowns of credit facilities by $111,856[268]. - Long-term debt as of December 31, 2024, was$1,388,088, down from $1,518,403 in 2023[269]. - The company entered into a new Credit Facility on October 18, 2024, providing a$1,300,000 revolving credit facility[270]. - As of December 31, 2024, the company had $1,164,535 available under the Credit Facility and was in compliance with all covenants[271]. Shareholder Returns - The company repurchased 1,292,733 shares for$64,359 under the Stock Repurchase Program during the year ended December 31, 2024[274]. - Quarterly dividends increased to $0.06 per share in 2024 from$0.05 per share in 2023[277]. Market and Currency Exposure - Approximately 58% of total revenues for the year ended December 31, 2024, were derived from outside the U.S., with 34% denominated in currencies other than the U.S. dollar[295]. - A 10% strengthening of the U.S. dollar against other currencies would have lowered the 2024 annual operating income by approximately $1.5 million[295]. - Approximately 66% of total revenues in 2024 were denominated in U.S. dollars, with the remaining in euros, British pounds, Canadian dollars, and other currencies[295]. Future Outlook and Strategic Focus - The company anticipates continued substantial investments in research and development to leverage opportunities in the infrastructure engineering software market[214]. - The company plans to continue focusing on account retention and growth in recurring revenues through new accounts and acquisitions[241].