Bentley(BSY)2024-11-07 21:14Revenue 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].