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Mar 31, 2023

Bentley Systems Q1 2023 Earnings Report

Bentley Systems reported operating results for the first quarter of 2023, with ARR growth accelerating to 13% and total revenues up by 14.1%.

Key Takeaways

Bentley Systems reported strong operating results for Q1 2023, demonstrating resilience in end-markets and predictability in its business model. ARR growth accelerated to 13%, and total revenues increased by 14.1%. The company met expectations for adjusted operating income inclusive of stock-based compensation expense margin and experienced a strong cash flow quarter.

Total revenues increased by 14.1% year-over-year, reaching $314.4 million.

ARR grew to $1,071.0 million, with a constant currency ARR growth rate of 13%.

The last twelve-month recurring revenues dollar-based net retention rate was 110%.

Adjusted net income per diluted share was $0.25, consistent with the same period last year.

Total Revenue
$314M
Previous year: $276M
+14.1%
EPS
$0.25
Previous year: $0.24
+4.2%
ARR
$1.07B
Previous year: $963M
+11.3%
Constant Currency ARR Growth
13%
Previous year: 27%
-51.9%
Dollar-Based Net Retention Rate
110%
Previous year: 108%
+1.9%
Gross Profit
$247M
Previous year: $220M
+12.5%
Cash and Equivalents
$93.6M
Previous year: $130M
-27.8%
Free Cash Flow
$172M
Previous year: $97.6M
+76.2%
Total Assets
$3.19B
Previous year: $3.16B
+0.9%

Bentley Systems

Bentley Systems

Bentley Systems Revenue by Segment

Forward Guidance

Bentley Systems' 2023 financial outlook is balanced between favorable business momentum and a cautious approach towards China and the commercial / facilities sector, due to geopolitical and macro uncertainties. The company met expectations for Adjusted operating income inclusive of stock-based compensation expense margin and anticipates cash flow from operations at an approximately 80% conversion rate from Adjusted EBITDA.

Revenue & Expenses

Visualization of income flow from segment revenue to net income