Bentley(BSY) - 2025 Q1 - Quarterly Results

Financial Performance Overview Bentley Systems' Q1 2025 results demonstrate strong revenue growth, enhanced profitability, and robust cash flow generation First Quarter 2025 Financial Highlights Bentley Systems reported strong Q1 2025 results, with total revenues up 9.7%, subscription revenues up 11.5%, and improved profitability Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $370.5M | $337.8M | +9.7% | | Subscriptions Revenues | $342.3M | $307.1M | +11.5% | | Operating Income Margin | 31.1% | 27.2% | +3.9 p.p. | | Net Income per Diluted Share | $0.28 | $0.22 | +27.3% | | Adjusted EPS | $0.35 | $0.31 | +12.9% | | Cash Flows from Operations | $219.4M | $205.0M | +7.0% | | Free Cash Flow | $216.4M | $201.4M | +7.4% | - Annualized Recurring Revenues (ARR) reached $1,319.3 million as of March 31, 2025, representing a constant currency growth rate of 12% compared to March 31, 2024[2] - The last twelve-month recurring revenues dollar-based net retention rate improved to 110%, up from 108% for the same period last year[2] Executive Commentary Executives expressed satisfaction with strong Q1 performance, highlighting business resilience, robust demand, and confidence in the full-year outlook - Executive Chair Greg Bentley emphasized the company's business resilience, attributing it to a dependable mix of infrastructure sectors, lifecycle phases, commercial models, and geographic distribution[3] - CEO Nicholas Cumins stated that the strong start to the year positions the company well for its annual financial outlook, with accounts remaining cautiously optimistic as countries continue to prioritize infrastructure funding[3] - CFO Werner Andre confirmed that Q1 results were in line with expectations, including 12% constant-currency ARR growth, highlighting sufficient balance sheet and cash flow for funding initiatives and debt refinancing[3] Financial Statements This section presents Bentley Systems' consolidated balance sheets, statements of operations, and cash flows for the reported periods Consolidated Balance Sheets As of March 31, 2025, total assets remained stable at $3.40 billion, while total liabilities decreased, leading to an increase in total equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,402,934 | $3,399,807 | | Total Liabilities | $2,305,245 | $2,358,687 | | Long-term debt | $1,244,308 | $1,388,088 | | Total Equity | $1,097,689 | $1,041,120 | Consolidated Statements of Operations Q1 2025 total revenues increased 9.7% to $370.5 million, driven by subscription growth, leading to improved operating and net income Statement of Operations Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $370,542 | $337,763 | | Subscriptions Revenues | $342,318 | $307,089 | | Gross Profit | $304,883 | $275,933 | | Income from Operations | $115,184 | $91,931 | | Net Income Attributable to Bentley Systems | $91,368 | $70,310 | | Diluted EPS | $0.28 | $0.22 | Consolidated Statements of Cash Flows Q1 2025 generated strong operating cash flow of $219.4 million, with financing activities primarily used for debt payments and stock repurchases Statement of Cash Flows Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $219,415 | $204,969 | | Net cash used in investing activities | ($3,044) | ($3,849) | | Net cash used in financing activities | ($200,808) | ($126,435) | | Cash and cash equivalents, end of period | $83,637 | $141,601 | Non-GAAP Financial Measures and Reconciliations This section provides reconciliations of GAAP to non-GAAP financial measures, offering additional insights into the company's performance Reconciliation of GAAP to Non-GAAP Measures Reconciliations highlight key non-GAAP metrics for Q1 2025, including Adjusted EPS of $0.35 and 10.9% constant currency total revenue growth Key Non-GAAP Reconciliations (Q1 2025, in thousands) | Metric | GAAP Value | Non-GAAP Value | | :--- | :--- | :--- | | Operating Income | $115,184 | - | | AOI less SBC | - | $126,220 | | Adjusted Operating Income | - | $143,525 | | Net Income | $91,368 | - | | Adjusted Net Income | - | $114,577 | | Cash flows from operations | $219,415 | - | | Free Cash Flow | - | $216,371 | - Adjusted EPS for Q1 2025 was $0.35, compared to $0.31 in Q1 2024, with primary adjustments for amortization of purchased intangibles ($11.4 million) and stock-based compensation ($17.3 million)[21] - On a constant currency basis, Q1 2025 total revenues were $374.3 million, representing a 10.9% increase over the prior year's constant currency revenue of $337.4 million[23] Other Information This section provides details on the conference call and important disclaimers regarding forward-looking statements Conference Call Information Details for the Q1 2025 earnings conference call, including webinar access and replay availability, were provided - A live Zoom video webinar to discuss Q1 2025 results was scheduled for May 7, 2025, at 8:15 a.m. Eastern time[4] - A replay and transcript will be available on the Bentley Systems' Investor Relations website after the event[5] Forward-Looking Statements & Disclaimers The report contains forward-looking statements subject to various risks and uncertainties, with disclaimers regarding future updates - The press release contains forward-looking statements regarding future results, strategy, and operations, which are based on current expectations and assumptions[7] - Significant risks that could cause actual results to differ include adverse global economic/political conditions, impact of tariffs, competition, and ability to integrate acquisitions[7] - The company clarifies that some financial measures presented are non-GAAP and directs readers to the Form 8-K for required reconciliations[6]