Bentley Systems Reports 9.3% Revenue Growth, Net Income Increase in Q3 and Nine Months 2024

Bentley Systems, Inc. reported a solid performance for the third quarter and the first nine months of 2024, with total revenues reaching $335.2 million for the three months ended September 30, 2024, a 9.3% increase from $306.6 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $1,003.3 million, also up 9.3% from $917.8 million year-over-year. The growth was primarily driven by a 12.0% increase in subscription revenues for the third quarter, amounting to $303.2 million, and a 12.4% increase for the nine months, totaling $907.8 million.

The company's gross profit for the third quarter was $270.3 million, compared to $241.9 million in the prior year, while net income for the quarter decreased to $42.3 million from $53.0 million in 2023. However, net income for the nine months increased to $184.7 million from $147.2 million in the previous year. The decline in quarterly net income was attributed to higher operating expenses, including increased selling and marketing costs, which rose by $10.1 million in the third quarter.

Operating income for the third quarter was $68.6 million, down from $73.7 million in 2023, while for the nine months, it increased to $240.7 million from $192.8 million. Adjusted operating income, which includes stock-based compensation, rose to $89.5 million for the third quarter and $297.2 million for the nine months, reflecting a positive trend in operational efficiency.

Strategically, Bentley Systems has been active in acquisitions, with net cash paid for acquisitions during the nine months ending September 30, 2024, amounting to $128.8 million, a significant increase from $23.1 million in the same period of 2023. The company also repurchased 912,737 shares of Class B common stock for $45.8 million during the nine months, compared to no repurchases in the prior year.

As of September 30, 2024, Bentley reported total assets of $3.4 billion, with total stockholders' equity increasing to $1.0 billion from $884.0 million at the end of 2023. The company maintained a strong cash position, with cash and cash equivalents rising to $72.2 million from $68.4 million at the end of 2023. The company’s long-term debt decreased to $1.4 billion from $1.5 billion, reflecting ongoing efforts to manage its capital structure effectively.

Overall, Bentley Systems demonstrated resilience in its revenue growth and profitability, supported by strategic acquisitions and a focus on subscription-based revenue models.