Bentley(BSY) - 2025 Q2 - Quarterly Results

Financial Highlights Bentley Systems achieved solid Q2 and H1 2025 revenue growth, driven by subscriptions, maintaining strong profitability and ARR expansion Second Quarter 2025 Results Q2 2025 saw total revenues reach $364.1 million with 10.2% growth, driven by subscription revenues, alongside stable cash flow and increased Adjusted EPS Q2 2025 Key Financial Metrics (Year-over-Year, in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $364.1M | $330.3M (from P&L) | 10.2% | 9.2% | | Subscriptions Revenues | $333.5M | $297.4M (from P&L) | 12.1% | 11.2% | | Operating Income Margin | 23.2% | 24.3% | (1.1 pps) | N/A | | Net Income per Diluted Share | $0.22 | $0.22 | 0.0% | N/A | | Adjusted EPS | $0.32 | $0.31 | 3.2% | N/A | | Cash Flows from Operations | $61.1M | $62.6M | (2.4%) | N/A | - Annualized Recurring Revenues (ARR) reached $1,379.2 million, representing a constant currency growth rate of 11.5% compared to June 30, 2024[2] - The last twelve-month recurring revenues dollar-based net retention rate was 109%, an improvement from 108% in the same period last year[2] Six Months Ended June 30, 2025 Results First half 2025 revenues grew 10.0% to $734.6 million, driven by subscriptions, with improved operating margin and increased net income per diluted share First Half 2025 Key Financial Metrics (Year-over-Year, in millions) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $734.6M | $668.1M | 10.0% | 10.1% | | Subscriptions Revenues | $675.8M | $604.5M | 11.8% | 11.9% | | Operating Income Margin | 27.2% | 25.8% | 1.4 pps | N/A | | Net Income per Diluted Share | $0.50 | $0.44 | 13.6% | N/A | | Adjusted EPS | $0.67 | $0.62 | 8.1% | N/A | | Cash Flows from Operations | $280.5M | $267.6M | 4.8% | N/A | Management Commentary Management expressed confidence in the company's performance and outlook, highlighting consistent results, business resilience, and strong financial positioning - Executive Chair Greg Bentley: Emphasized that results are on track for the 2025 outlook, driven by long-term 'going digital' trends and the need for productivity gains in infrastructure engineering[4] - CEO Nicholas Cumins: Noted a strong quarter despite global uncertainties, attributing performance to a resilient business model and secular infrastructure investment[4] - CFO Werner Andre: Stated that Q2 performance met expectations with 11.5% constant-currency ARR growth. He highlighted the company's strong balance sheet and cash flow, providing capacity for share repurchases, dividends, potential acquisitions, and refinancing debt[4] Financial Statements The unaudited consolidated financial statements detail the company's financial position, reflecting increased assets, revenue growth, and strong operating cash flow Consolidated Balance Sheets As of June 30, 2025, total assets increased to $3.42 billion, while total liabilities decreased, leading to an increase in total equity Key Balance Sheet Items (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $439,522 | $442,073 | | Total Assets | $3,423,284 | $3,399,807 | | Total Current Liabilities | $858,364 | $814,334 | | Long-term Debt | $1,245,843 | $1,388,088 | | Total Liabilities | $2,261,114 | $2,358,687 | | Total Equity | $1,162,170 | $1,041,120 | Consolidated Statements of Operations For the six months ended June 30, 2025, total revenues grew 10.0% to $734.6 million, resulting in increased gross profit and net income Key Income Statement Data (in thousands, YoY) | Account | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $364,106 | $330,337 | $734,648 | $668,100 | | Gross Profit | $295,330 | $267,144 | $600,213 | $543,077 | | Income from Operations | $84,430 | $80,177 | $199,614 | $172,108 | | Net Income Attributable to Bentley Systems | $70,482 | $72,046 | $161,850 | $142,356 | Consolidated Statements of Cash Flows Net cash from operating activities increased to $280.5 million for the first six months of 2025, leading to a net increase in cash and cash equivalents Summary of Cash Flows (in thousands, for Six Months Ended June 30) | Category | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $280,500 | $267,555 | | Net cash used in investing activities | ($7,135) | ($10,946) | | Net cash used in financing activities | ($257,509) | ($270,999) | | Increase (decrease) in cash and cash equivalents | $25,637 | ($17,134) | | Cash and cash equivalents, end of period | $89,646 | $51,278 | Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP to non-GAAP financial measures, clarifying calculations for Adjusted Operating Income, Adjusted Net Income, Free Cash Flow, and Adjusted EBITDA Reconciliation to Adjusted Operating Income and Adjusted Net Income Q2 2025 GAAP operating income of $84.4 million was adjusted to $124.5 million, and net income of $70.5 million to $105.5 million, primarily by adding back amortization and stock-based compensation Q2 2025 Reconciliation Summary (in thousands) | Metric | GAAP Value (in thousands) | Key Adjustments (in thousands) | Non-GAAP Value (in thousands) | | :--- | :--- | :--- | :--- | | Operating Income | $84,430 | +$11,405 (Amortization)
+$19,319 (Stock Comp.) | $124,542 (Adj. Op. Income) | | Net Income | $70,482 | +$11,405 (Amortization)
+$19,319 (Stock Comp.) | $105,478 (Adj. Net Income) | Reconciliation to Free Cash Flow and Adjusted EBITDA Q2 2025 Free Cash Flow was $57.0 million, derived from operating cash flow, and Adjusted EBITDA was $129.3 million after various adjustments Q2 2025 Cash Flow Reconciliations (in thousands) | Reconciliation | Amount (in thousands) | | :--- | :--- | | Cash flows from operations | $61,085 | | Less: Purchases of property and equipment | ($4,091) | | Free cash flow | $56,994 | | Adjusted EBITDA | $129,318 | Reconciliation to Constant Currency Revenues A constant currency reconciliation for Q2 2025 shows a negative $3.6 million FX impact on total revenues, with constant currency growth of 9.2% for total revenue and 11.2% for subscriptions Q2 2025 Constant Currency Impact (in thousands) | Revenue Type | As Reported (in thousands) | Impact of FX (in thousands) | Constant Currency (in thousands) | | :--- | :--- | :--- | :--- | | Total Revenues | $364,106 | ($3,603) | $360,503 | | Subscriptions Revenues | $333,452 | ($3,191) | $330,261 | Additional Information This section provides investor logistical details and includes legal disclaimers regarding non-GAAP measures and forward-looking statements Conference Call Information Bentley Systems will host a live Zoom webinar on August 6, 2025, at 8:15 a.m. Eastern time to discuss Q2 2025 results - A live Zoom webinar to discuss Q2 2025 results is scheduled for August 6, 2025, at 8:15 a.m. Eastern time[5] Forward-Looking Statements and Non-GAAP Measures This report contains forward-looking statements subject to risks and uncertainties, and utilizes non-GAAP financial measures with reconciliations available in the Form 8-K - The report contains forward-looking statements concerning future results and operations, which are subject to numerous risks and uncertainties detailed in the company's SEC filings[9][10] - The company uses non-GAAP financial measures, and reconciliations to the most comparable GAAP measures are provided in the Form 8-K furnished to the SEC[8]