Bentley Systems Inc (NASDAQ: BSY) stock fell over 3% on August 11th, 2021 (as of 11:56:07 AM UTC-4 · USD ; Source: Google finance) post second quarter of FY 21. The perpetual license revenues are down $1 million for the quarter compared to the prior year and now represent only 5% of total revenues.
The company has reported net income of $44.9 million in the second quarter, higher than $39.1 million in the same period last year. Annualized Recurring Revenue (“ARR”) was $882.4 million as of June 30, 2021, representing a constant currency ARR growth rate of 23% from June 30, 2020. The stalwart performance in the public works and utilities sector of the market led the way in overcoming the macro-induced drag on the performance in the industrial and resources sector, where the footprint of EPC accounts continues to suffer declines induced by capital project delays and cancellations. On a product dimension, the SYNCHRO construction, PLAXIS geotechnical, OpenFlows water modeling and AssetWise information management and inspection solutions all had notably positive contributions during the quarter. On a geographic dimension, North America, the U.K. and Europe all also had notably favorable quarters, net of some disappointing ARR performance in China with its geopolitical challenges and in the Middle East corresponding to the ongoing oil and gas exposures.
BSY in the second quarter of FY 21 has reported the adjusted earnings per share of 23 cents, while adjusted revenue growth of 21 percent to $222.9 million in the second quarter of FY 21. Most of that growth comes from subscriptions, which grew 17.6% over the year prior and still represent well over 80% of the revenues. The company’s recent acquisition of Seequent contributed nearly $4 million of subscription revenue growth during the quarter, accounting for 2.5 points of growth. Last twelve-month recurring revenues were $746.2 million, up 12.1% year-over-year. The company continues to observe some ongoing cannibalization of perpetual licenses into term license subscriptions and Virtuoso subscriptions. The professional services revenues, now over 11% of the total revenues, increased nearly 83% over the same quarter last year.
The company now expects total revenues of between $945 million and $960 million, up from the earlier $895-$920 million. The analysts were looking for revenues of $917.3 million in the year ahead.