What Happened:
Shares of infrastructure design software provider Bentley Systems (NASDAQ:BSY) jumped 7.07% in the morning session after the company reported first-quarter results exceeding analysts' annual recurring revenue (ARR), revenue, free cash flows, and earnings per share (EPS) estimates. It was a solid quarter, especially in light of anticipated challenges in China. The company's outlook for 2023 was slightly above for ARR and revenue and nicely ahead for operating margin. Additionally, the company described this outlook as being "appropriately balanced," taking into account both favorable business momentum and a cautious approach towards China and the commercial/facilities sector. Overall it was a strong quarter accompanied by a reassuring outlook.
What is the market telling us:
Bentley's shares are somewhat volatile and over the last year have had 17 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Bentley is up 26.2% since the beginning of the year. Investors who bought $1,000 worth of Bentley's shares at the IPO in September 2020 would now be looking at an investment worth $1, 380.
Is now the time to buy Bentley? Access our full analysis of the earnings results here, it's free.