Infrastructure design software provider Bentley Systems (NASDAQ:BSY) missed analysts' expectations in Q4 FY2023, with revenue up 8.3% year on year to $310.6 million. The company's full-year revenue guidance of $1.36 billion at the midpoint also came in slightly below analysts' estimates. It made a non-GAAP profit of $0.20 per share, improving from its profit of $0.18 per share in the same quarter last year.

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Bentley (BSY) Q4 FY2023 Highlights:

• Revenue: $310.6 million vs analyst estimates of $313.6 million (0.9% miss)

• EPS (non-GAAP): $0.20 vs analyst estimates of $0.18 (9.9% beat)

• Management's revenue guidance for the upcoming financial year 2024 is $1.36 billion at the midpoint, missing analyst estimates by 0.5% and implying 10.9% growth (vs 11.8% in FY2023)

• Free Cash Flow of $80.96 million, up 24.2% from the previous quarter

• Net Revenue Retention Rate: 109%, in line with the previous quarter

• Gross Margin (GAAP): 78.2%, down from 80.6% in the same quarter last year

• Market Capitalization: $16.47 billion

CEO Greg Bentley said, “Our financial results for 23Q4 and the full year underscore the sustained combination of auspicious infrastructure engineering markets and the strength of our operations. I enthusiastically congratulate COO Nicholas Cumins and our teams for delivering another year of unsurpassed performance, resourcefully reaching fully 100% of our new business target while also clearing our established hurdle of 100 basis points in annual operating margin improvement. Most notably, we achieved ARR growth (year‑over‑year constant currency business performance, including programmatic acquisitions) of 12.5%, and excluding China, as our purposeful transitions from direct subscriptions there gain traction, we achieved a high-water mark of 13.5%".

Founded by brothers Keith and Barry Bentley, Bentley Systems (NASDAQ:BSY) offers a software-as-a-service platform that addresses the lifecycle of infrastructure projects such as road networks, tunnel systems, and wastewater facilities.

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Sales Growth

As you can see below, Bentley's revenue growth has been unremarkable over the last two years, growing from $267.7 million in Q4 FY2021 to $310.6 million this quarter.