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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Reflecting On Vertical Software Stocks’ Q4 Earnings: Bentley (NASDAQ:BSY)

BSY Cover Image

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Bentley (NASDAQ: BSY) and the rest of the vertical software stocks fared in Q4.

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 4 vertical software stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 15.7% since the latest earnings results.

Weakest Q4: Bentley (NASDAQ: BSY)

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.

Bentley reported revenues of $349.8 million, up 12.6% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with full-year revenue guidance slightly missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.

CEO Nicholas Cumins said, “Our year-over-year ARR growth on a constant-currency basis was 12% in 24Q4 (12.5% excluding China). The global demand environment remains robust across sectors and geographies, and our users continue to be optimistic about end market conditions. We entered this year well aligned with their priorities and well positioned to continue our strong performance in 2025 and beyond.

Bentley Total Revenue

Bentley delivered the weakest performance against analyst estimates of the whole group. The stock is down 10.7% since reporting and currently trades at $40.79.

Read our full report on Bentley here, it’s free.

Best Q4: Guidewire (NYSE: GWRE)

Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE: GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows.

Guidewire reported revenues of $289.5 million, up 20.2% year on year, outperforming analysts’ expectations by 1.4%. The business had a strong quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Guidewire Total Revenue

Guidewire scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $176.21.

Is now the time to buy Guidewire? Access our full analysis of the earnings results here, it’s free.

Manhattan Associates (NASDAQ: MANH)

Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ: MANH) offers a software-as-service platform that helps customers manage their supply chains.

Manhattan Associates reported revenues of $255.8 million, up 7.4% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a slower quarter as it posted full-year guidance of slowing revenue growth.

Manhattan Associates delivered the weakest full-year guidance update in the group. As expected, the stock is down 43.6% since the results and currently trades at $166.51.

Read our full analysis of Manhattan Associates’s results here.

Alarm.com (NASDAQ: ALRM)

Founded in 2000 as a business unit within MicroStrategy, Alarm.com (NASDAQ: ALRM) is a software-as-a-service platform that enables users to control their security systems and smart home appliances from a single app.

Alarm.com reported revenues of $242.2 million, up 7.1% year on year. This result topped analysts’ expectations by 1.4%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ billings estimates but full-year guidance of slowing revenue growth.

Alarm.com had the slowest revenue growth among its peers. The stock is down 2.9% since reporting and currently trades at $58.82.

Read our full, actionable report on Alarm.com here, it’s free.


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