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Bentley (BSY) Reports Q3: Everything You Need To Know Ahead Of Earnings

StockStory - Mon Nov 6, 2023

BSY Cover Image

Infrastructure design software provider Bentley Systems (NASDAQ:BSY) will be reporting earnings tomorrow before market hours. Here's what to look for.

Last quarter Bentley reported revenues of $296.7 million, up 10.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a decline in its gross margin. On the other hand, Revenue and ARR (annual recurring revenue) beat modestly, and free cash flow was nicely ahead.

Is Bentley buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Bentley's revenue to grow 11.6% year on year to $299.6 million, improving on the 6.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.

Bentley Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Bentley's peers in the software as a service segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Manhattan Associates delivered top-line growth of 20.4% year on year, beating analyst estimates by 5.4% and Zeta reported revenues up 24.1% year on year, exceeding estimates by 5.7%. Manhattan Associates traded down 4.1% on the results, Zeta was flat after the results.

Read our full analysis of Manhattan Associates's results here and Zeta's results here.

Tech stocks have been facing declining investor sentiment since 2022 and while some of the software as a service stocks have fared somewhat better, they have not been spared, with share price declining 2.7% over the last month. Bentley is down 5.6% during the same time, and is heading into the earnings with analyst price target of $56.5, compared to share price of $50.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.