Bentley Systems, Inc. (BSY), a leading infrastructure engineering software company, saw its shares surge 5.46% in pre-market trading on Wednesday as the company reported robust fourth-quarter and full-year 2024 results, driven by strong recurring revenue growth.

The Exton, Pennsylvania-based company posted total revenue of $349.8 million for the fourth quarter, a 12.6% increase from the same period last year. Subscription revenues, which account for the bulk of the company's revenue, rose 15.8% to $315.6 million, reflecting the company's successful transition to a subscription-based model.

For the full year 2024, Bentley Systems reported total revenue of $1.35 billion, a 10.1% increase from 2023. Subscription revenues grew 13.2% to $1.22 billion, highlighting the company's ability to consistently retain and grow its recurring revenue base.

The company's Annualized Recurring Revenue (ARR), a key metric that measures the scale and growth of its subscription-based business, stood at $1.28 billion as of December 31, 2024, representing a constant currency ARR growth rate of 12% compared to the previous year.

Bentley Systems' strong performance was driven by robust demand across sectors and geographies, as well as the continued adoption of its infrastructure AI solutions. The company's successful execution of its growth initiatives, including product innovation and strategic acquisitions, further contributed to its impressive results.

Looking ahead, Bentley Systems provided an optimistic outlook for 2025, forecasting total revenue in the range of $1.46 billion to $1.49 billion, with subscription revenue growth expected to be between 10.5% and 12.5% on a constant currency basis. The company also anticipates an adjusted operating income margin of approximately 28.5%, reflecting an annual improvement of 100 basis points.

"Our strong performance in 2024 underscores the resilience of our business model and the growing demand for our innovative infrastructure engineering software solutions," said Greg Bentley, Executive Chair of Bentley Systems. "We remain well-positioned to capture the numerous growth opportunities ahead, leveraging our heritage of technology innovation and industry leadership."