Bentley(US:BSY)2025-11-05 21:09Revenue Growth - Total revenues for the three months ended September 30, 2025, were $375,549, up 12.0% compared to the same period in 2024, and $1,110,197 for the nine months ended September 30, 2025, up 10.7%[134] - Subscription revenues for the three months ended September 30, 2025, were $344,293, up 13.5%, and $1,020,063 for the nine months ended September 30, 2025, up 12.4%[134] - Annual Recurring Revenue (ARR) was $1,405,236 as of September 30, 2025, representing a constant currency ARR growth rate of 10.5%[134] - The last twelve-month recurring revenues increased by $155,106 million, primarily due to growth in ARR and new account additions[176] - Total revenues for Q3 2025 were $375,549, compared to $335,173 in Q3 2024, reflecting an increase of 12.0%[190] - Subscription revenues for Q3 2025 reached $344,293, a rise from $303,239 in Q3 2024, marking a growth of 13.6%[190] - The company reported a total revenue of $1,110,197 for the nine months ended September 30, 2025, compared to $1,003,273 for the same period in 2024, which is a 10.7% increase[190] Regional Performance - Revenues from the Americas increased by 11.8% to $196,345 for the three months ended September 30, 2025, and by 9.9% to $589,379 for the nine months ended September 30, 2025[145] - EMEA revenues increased by 13.2% to $107,887 for the three months ended September 30, 2025, and by 12.0% to $320,306 for the nine months ended September 30, 2025[145] - APAC revenues increased by 11.0% to $71,317 for the three months ended September 30, 2025, and by 10.6% to $200,512 for the nine months ended September 30, 2025[145] - The Americas region generated $196,345 in revenue for Q3 2025, up from $175,609 in Q3 2024, representing an increase of 11.5%[190] - EMEA revenues for Q3 2025 were $107,887, compared to $95,343 in Q3 2024, indicating a growth of 13.5%[190] - APAC revenues for Q3 2025 reached $71,317, an increase from $64,221 in Q3 2024, reflecting a growth of 11.5%[190] Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $84,497, compared to $68,630 for the same period in 2024, and $284,111 for the nine months ended September 30, 2025, compared to $240,738 in 2024[134] - Cost of revenues for the three months ended September 30, 2025, was $72,195, an increase of 11.4% compared to the same period in 2024, and $206,630 for the nine months ended September 30, 2025, up 8.8%[153] - Research and development expenses for the three months ended September 30, 2025, increased by 12.4% to $78,751 million compared to $70,068 million in 2024[156] - Selling and marketing expenses for the same period rose by 11.0% to $72,107 million, driven by headcount-related costs and promotional expenses[158] - Total operating expenses for the nine months ended September 30, 2025, were $619,456 million, an increase of 8.2% from $572,680 million in 2024[156] - Adjusted Operating Income Less Stock-Based Compensation (AOI less SBC) for Q3 2025 was $104,026, compared to $89,524 in Q3 2024, representing a 16.3% increase[188] - Adjusted Operating Income (AOI) for the nine months ended September 30, 2025, was $389,966, up from $354,250 in the same period of 2024, indicating a growth of 10.1%[188] Cash Flow and Financial Position - Cash flows from operations were $396,876 for the nine months ended September 30, 2025, compared to $353,660 for the same period in 2024[134] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $396,876, an increase of 12.2% from $353,660 in 2024[195] - Cash and cash equivalents as of September 30, 2025, totaled $165,411, significantly higher than $64,009 at the end of 2024[193] - Long-term debt decreased to $1,247,378 as of September 30, 2025, from $1,388,088 at the end of 2024[199] - Net cash used in investing activities was $13,774 for the nine months ended September 30, 2025, a significant decrease from $135,680 in 2024[195] - The company had $1,299,850 available under the Credit Facility as of September 30, 2025, and was in compliance with all covenants[199] Shareholder Returns - The company repurchased 1,457,454 shares for $65,029 during the nine months ended September 30, 2025, compared to 912,737 shares for $45,769 in 2024[202] - The quarterly dividend per share increased to $0.07 in 2025 from $0.06 in 2024, resulting in higher dividend payments of $9,771[198] - Quarterly dividends paid were $0.07 per share for the nine months ended September 30, 2025, compared to $0.06 per share for the same period in 2024[205] - Future dividend payments will depend on the discretion of the Board of Directors and various factors including operational results and financial condition[205] Tax and Interest - Interest expense, net decreased by 41.6% to $(2,727) million for the three months ended September 30, 2025, primarily due to lower average debt outstanding[162] - The effective tax rate for the three months ended September 30, 2025, was 31.4%, up from 28.1% in 2024, mainly due to increased discrete tax expenses[164] - The company anticipates favorable impacts on cash paid for income taxes in 2025 and 2026 due to the One Big Beautiful Bill Act, particularly for domestic R&D expenses[166] Customer Metrics - The account retention rate remained stable at 99% for both September 30, 2025, and 2024, indicating strong customer loyalty[168] - Recurring revenues dollar-based net retention rate was 109% for both periods, demonstrating effective revenue growth from existing accounts[168] Financial Reporting Practices - The company uses non-GAAP financial measures to evaluate operational performance and assist in internal budgeting and forecasting[186] - There have been no material changes in market risk exposure as described in the 2024 Annual Report on Form 10-K[206]