Bentley Systems Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Bentley Systems, Incorporated (BSY) reported second-quarter 2025 earnings of 32 cents per share, exceeding the Zacks Consensus Estimate by 10.3% and showing a year-over-year growth of 3.2% [1] - Revenues for the second quarter increased by 10.2% year over year to $364.1 million, also surpassing the Zacks Consensus Estimate by 0.28% [1] - Despite the positive earnings report, BSY's stock declined by 3.21% on the day of the announcement [1] Financial Performance - BSY's Subscriptions and licenses revenues were $343.6 million, a decrease of 11.5% year over year, while Services revenues were $20.5 million, down 7.1% year over year [2] - Gross profit for the second quarter was $295.3 million, reflecting a 10.6% increase from $267.1 million in the same quarter last year, with a gross margin of 81.1%, up 20 basis points year over year [4] - Non-GAAP operating income rose to $124.5 million from $117.1 million year over year, and non-GAAP net income increased to $105.5 million from $101.8 million [4] Geographic Revenue Breakdown - Revenues from the Americas were $194 million, accounting for 53.3% of total revenues, with a year-over-year increase of 10.1% [3] - EMEA revenues totaled $105.4 million, representing 29% of total revenues, up 10% year over year [3] - Revenues from Asia-Pacific (APAC) were $64.6 million, making up 17.8% of total revenues, with an 11.1% year-over-year increase [3] Balance Sheet and Cash Flow - At the end of the quarter, BSY had cash and cash equivalents of $89.6 million, up from $83.6 million in the previous quarter, with long-term debt of $1.25 billion [5] - Operating cash flow was $61.1 million, and free cash flow was $57 million for the reported quarter [5] 2025 Guidance - For fiscal 2025, BSY expects total revenues to range from $1,461 million to $1,490 million, or $1,481 million to $1,510 million in constant currency, with a Zacks Consensus Estimate of $1.48 billion, indicating a year-over-year growth of 9.41% [6] - Adjusted operating income margin is expected to be approximately 28.5%, reflecting an annual improvement of 100 basis points [6] - Free cash flow is projected to be between $430 million and $470 million, an increase from the previous guidance of $415 million to $455 million [7]