Summary
Bentley Systems closed fiscal 2024 with fourth quarter revenue of $349.82 million, up 12.6% from the prior-year quarter. Gross profit was $281.91 million, up 16.1%, and gross margin reached 80.6%, up 2.4 percentage points. Operating income was $61.41 million, up 62.6%, as operating margin expanded to 17.6%, up 5.4 percentage points. Net income was $50.09 million, down 72.1% from the prior-year quarter. The decline reflects a prior-year tax benefit rather than weaker operations. Operating cash flow was $81.63 million, down 6.2%. Capital expenditures were $5.55 million, down 9.0%. Deferred revenue was $245.73 million, down 3.2%, and remaining performance obligations were $262.37 million, down 2.7%.
For the full year, revenue was $1,353.1 million, up 10.1% from the prior year. Gross profit was $1,095.3 million, up 13.8%, and gross margin was 80.9%, up 2.6 percentage points. Operating income was $302.15 million, up 31.1%, and operating margin was 22.3%, up 3.6 percentage points. Net income was $234.79 million, down 28.2% from the prior year. Diluted EPS was $0.72, down 28.0% from the prior year. Operating cash flow was $435.29 million, up 4.5%. Capital expenditures were $14.05 million, down 43.8%. The full-year operating margin improvement reflects revenue growth and cost discipline.
Operationally, annualized recurring revenue stood at $1,283.3 million as of December 31, 2024, compared with $1,174.8 million as of December 31, 2023, a constant currency ARR growth rate of 12%. The last twelve-month recurring revenues dollar-based net retention rate was 110%, compared with 109% for the same period last year. Account retention rate was 99% as of December 31, 2024, compared with 98% as of December 31, 2023. Recurring revenues represented 91% of total revenues for 2024 and 89% for 2023. The E365 subscription offering represented 45% of total ARR as of December 31, 2024. The largest account represented no more than 2% of total revenues. Headcount-related costs were approximately 80% of cost of revenues, research and development, selling and marketing, and general and administrative expenses. Non-GAAP profitability metrics were mixed. Adjusted OI w SBC margin was 21.5% in the fourth quarter, compared with 24.0% for the prior-year quarter, and 27.5% for the full year, compared with 26.4% for 2023. Adjusted EPS was $0.21 in the fourth quarter, compared with $0.20, and $1.07 for the full year, compared with $0.91. Adjusted operating income was $445.7 million for 2024, compared with $396.1 million for 2023.
Management's full-year 2025 outlook calls for constant currency subscriptions revenue growth of 10.5% to 12.5% and constant currency ARR growth of 10.5% to 12.5%. The plan assumes perpetual licenses and services revenues approximately flat in constant currency. Adjusted OI w SBC margin is targeted at approximately 28.5%, with an effective tax rate of approximately 21%. Free cash flows are guided to a range of $415 million to $455 million. The board also increased the quarterly dividend by one cent and declared a $0.07 per share dividend for the first quarter of 2025. Risks include adverse global economic and political conditions, sanctions and regulatory restrictions, geopolitical challenges in China, obstacles to cloud-deployed software there, and the local preference for license sales over subscriptions. The company also faces weakness in Cohesive's MAXIMO-related work, foreign currency exposure, competition, acquisition integration risk, interest rate risk, and the need to retain key personnel. Deferred revenue and RPO both declined year over year, which warrants attention even as ARR growth held near double digits.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $349.8M | $335.2M | +4.4% | $310.6M | +12.6% |
| Gross profit | $281.9M | $270.3M | +4.3% | $242.8M | +16.1% |
| Gross margin | 80.6% | 80.7% | -0.1 pp | 78.2% | +2.4 pp |
| Research & development | $77.1M | $70.1M | +10.0% | $71.2M | +8.2% |
| Sales & marketing | $78.7M | $64.9M | +21.2% | $64.1M | +22.9% |
| General & administrative | $57.7M | $51.4M | +12.3% | $52.0M | +10.9% |
| Total operating expenses | $220.5M | $201.7M | +9.3% | $205.1M | +7.5% |
| Operating income (loss) | $61.4M | $68.6M | -10.5% | $37.8M | +62.6% |
| Operating margin | 17.6% | 20.5% | -2.9 pp | 12.2% | +5.4 pp |
| Net income (loss) | $49.7M | $42.3M | +17.5% | $179.6M | -72.3% |
| Net margin | 14.2% | 12.6% | +1.6 pp | 57.8% | -43.6 pp |
| Diluted EPS | $0.15 | $0.13 | +$0.02 | $0.54 | -$0.39 |
Risks
Demand for Bentley's software depends on infrastructure spending across public works/utilities, resources, industrial, and commercial/facilities sectors. If accounts reduce spending, request discounts, or seek extended payment terms, revenue and renewals may decrease, and operating expenses may not adjust quickly.
Approximately 58% of total revenues were from outside the U.S. for the year ended December 31, 2024, and about 18% related to APAC including China. MD&A states future results in China remain uncertain due to continued geopolitical challenges, obstacles to cloud-deployed software, and a preference for license sales over subscriptions.
The October 18, 2024 Credit Facility contains restrictive and financial covenants, including a net senior secured leverage ratio not to exceed 3.00 to 1.00 and a fixed charge coverage ratio not less than 3.00 to 1.00. If the Bentley Family ceases to own at least 20% of aggregate voting power, that is an event of default.
Recent and potential U.S. tariffs or a global trade war could increase the cost of products and services and conducting business. Bentley may not be able to renegotiate prices or diversify quickly, which could adversely affect gross margins and profitability.
Approximately 34% of total revenues for the year ended December 31, 2024 were denominated in a currency other than the U.S. dollar, and Bentley does not hedge foreign currency exposure other than natural hedges. Currency fluctuations can affect reported revenues, expenses, and cash flows.
Bentley is increasingly building AI into its solutions and expects AI to drive future growth, but there may be slow adoption, regulatory challenges, or failure to implement and market AI solutions. The increasingly complex AI regulatory landscape may also increase research and development burdens and costs.
Global privacy, data protection, cross-border data flow, and information security laws such as GDPR, PIPL, CCPA, and CPRA create compliance obligations and substantial potential penalties. These rules may restrict the use and adoption of Bentley's solutions, particularly cloud services.
The 2026 Notes and 2027 Notes rank senior to Class B common stock, and the if-converted method for accounting reduces reported diluted earnings per share. Conversion or conditional conversion feature could require cash settlement or reclassification as current liabilities, reducing working capital and diluting stockholders.
The dual-class structure gives the Bentley Control Group approximately 53.5% of voting power as of December 31, 2024, limiting other stockholders' influence. This concentrated control may delay, defer, or prevent a change in control and may lead to votes adverse to other stockholders.
Approximately 96% of cash and cash equivalents were held outside the U.S. as of December 31, 2024. Repatriation restrictions or adverse tax consequences may limit Bentley's ability to use foreign cash, requiring additional equity or debt financing.
MD&A reports services revenues decreased 17.9% for the year ended December 31, 2024, driven primarily by weakness in Maximo-related work within Cohesive, partially offsetting subscription revenue growth. Continued services weakness could weigh on total revenue growth.
Bentley relies heavily on its direct sales force and has reorganized sales and marketing functions, including the 2023 Program. These changes may result in temporary lack of sales production and adversely impact revenues in future quarters.
Bentley has grown through numerous acquisitions and completed another acquisition in September 2024. Failure to identify suitable targets or integrate acquired technologies, operations, and internal controls could prevent anticipated synergies and harm results.
A significant portion of assets relates to goodwill and amortizable intangibles, which are tested annually or upon triggering events. Adverse changes such as declines in stock price, market capitalization, or cash flows could require a significant impairment charge.
SaaS KPIs
All quarters →Account Retention Rate
Last Twelve-Months Recurring Revenues
Constant Currency ARR Growth Rate
Adjusted OI w/SBC margin
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 Q4 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 2, 2026.