Summary
Bentley Systems reported third quarter fiscal 2024 revenue of $335.2 million, up 9.3% from the prior-year quarter. Gross profit rose 11.7% to $270.3 million, and gross margin expanded to 80.7% from 78.9%, up 1.8 percentage points. The top line and gross margin improved, but operating income fell 6.9% to $68.6 million. Operating margin was 20.5%, down 3.6 percentage points from 24.0%. Net income dropped 20.2% to $42.3 million, and diluted EPS was $0.13, down from $0.16. The quarter shows a clear split: strong recurring revenue and gross profit, weaker operating and net profitability. The decline in operating income came despite higher revenue.
For the nine months ended September 30, 2024, revenue was $1.00 billion, up 9.3% from the prior-year period. Gross profit was $813.4 million, up 13.1%, and gross margin was 81.1%, up 2.7 percentage points. Operating income was $240.7 million, up 24.9%, and operating margin was 24.0%, up 3.0 percentage points. Net income was $184.7 million, up 25.5%, and diluted EPS was $0.57, up from $0.46. Deferred revenue and remaining performance obligations both stood at $241.1 million, up 6.2% from the prior-year quarter. The year-to-date picture is much stronger than the third quarter alone, with operating income and net income growing at a faster pace than revenue. That contrast is notable.
Operational metrics point to healthy demand. Annualized recurring revenue was $1,270.7 million as of September 30, 2024, compared with $1,124.8 million as of September 30, 2023, a constant currency ARR growth rate of 12%. The last twelve-month recurring revenues dollar-based net retention rate was 109%, compared with 110% for the same period last year. Subscriptions revenues represented 91% of total revenues, according to the CFO commentary. Adjusted operating income inclusive of stock-based compensation expense margin was 26.7%, compared with 28.2% for the same period last year. Adjusted net income per diluted share was $0.24, compared with $0.22. The company also said ARR growth accelerated to 12% in 24Q3, or 12.5% excluding China, with strength broad based across geographies and sectors. Account retention rate was 99%, compared with 97% for the same period last year.
Guidance context is mixed. The CFO said total revenue growth for 2024 is expected at the lower end of the annual outlook range due to continued declines in Cohesive professional services for Maximo. Profitability and cash flow in the quarter position the company well in relation to its profitability outlook and an increased cash flow outlook for the year. Management also pointed to an annual ramp in ARR growth. Risks remain. Attrition in China is described as stubborn, and future results in China remain uncertain because of geopolitical challenges, obstacles to cloud-deployed software, and a preference for license sales rather than subscriptions. The company completed the acquisition of Cesium in September 2024 and announced a strategic partnership with Google in October 2024. In October 2024, Bentley entered a new five-year $1.3 billion bank credit facility with a further $500 million accordion feature. The quarter's GAAP profit decline and the China headwind are the main blemishes on an otherwise solid recurring revenue story.
Cash flow metrics were solid. Third quarter operating cash flow was $86.1 million, up 18.2% from the prior-year quarter. Capital expenditures in the third quarter were $1.81 million, down 76.3%. For the nine months, operating cash flow was $353.7 million, up 7.3%, and capital expenditures were $8.5 million, down 55.0%. The company also entered a new five-year $1.3 billion bank credit facility in October 2024 with a further $500 million accordion feature. Management said the new facility was used to repay all indebtedness under the previous credit facility, including the outstanding term loan. That refinancing gives Bentley more flexibility as it integrates Cesium and invests in AI and digital twin products.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $335.2M | $330.3M | +1.5% | $306.6M | +9.3% |
| Gross profit | $270.3M | $267.1M | +1.2% | $241.9M | +11.7% |
| Gross margin | 80.7% | 80.9% | -0.2 pp | 78.9% | +1.8 pp |
| Research & development | $70.1M | $65.7M | +6.6% | $65.5M | +7.0% |
| Sales & marketing | $64.9M | $57.1M | +13.7% | $53.8M | +20.8% |
| General & administrative | $51.4M | $54.9M | -6.4% | $42.7M | +20.3% |
| Total operating expenses | $201.7M | $187.0M | +7.9% | $168.3M | +19.9% |
| Operating income (loss) | $68.6M | $80.2M | -14.4% | $73.7M | -6.9% |
| Operating margin | 20.5% | 24.3% | -3.8 pp | 24.0% | -3.6 pp |
| Net income (loss) | $42.3M | $72.0M | -41.2% | $53.0M | -20.2% |
| Net margin | 12.6% | 21.8% | -9.2 pp | 17.3% | -4.7 pp |
| Diluted EPS | $0.13 | $0.22 | -$0.09 | $0.16 | -$0.03 |
| Net retention rate | 109.0% | 108.0% | +1.0 pp | 110.0% | -1.0 pp |
Risks
MD&A states that future results in China remain uncertain as a result of continued geopolitical challenges, obstacles to cloud-deployed software, and the financial timing impact of the preference there for license sales rather than subscriptions, which could pressure APAC subscriptions growth.
SaaS KPIs
All quarters →Account Retention Rate
Last Twelve-Months Recurring Revenues
ARR
ARR growth rate (constant currency)
Adjusted OI w/SBC margin
Recurring Revenues Dollar-Based Net Retention Rate
Recurring revenues as % of total revenues
ARR growth rate (constant currency, excluding China)
Summary, forecast, risks and KPIs are extracted from BENTLEY SYSTEMS INC's SEC filings for Q3 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.