Bentley (BSY) Reports Earnings Tomorrow. What To Expect

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

Last quarter Bentley reported revenues of $306.6 million, up 14.3% year on year, beating analyst revenue expectations by 2.3%. It was a strong quarter for the company, with a decent beat analysts' revenue expectations, driven by an ARR (annual recurring revenue) beat. In addition, its gross margin improved and adjusted operating income beat.

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 9.3% year on year to $313.6 million, improving on the 7.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.

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 Q4 earnings results, giving us a hint of what we can expect. Manhattan Associates delivered top-line growth of 20.3% year on year, beating analyst estimates by 6.4% and Alarm.com reported revenues up 8.7% year on year, exceeding estimates by 0.6%. Manhattan Associates traded up 4.1% on the results, and Alarm.com was up 3.3%.

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

There has been a stampede out of high valuation technology stocks and while some of the software as a service stocks have fared somewhat better, they have not been spared, with share price declining 2.9% over the last month. Bentley is up 1.7% during the same time, and is heading into the earnings with analyst price target of $57.5, compared to share price of $52.6.

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