Good morning, and once again, thanks to each of you for your interest in BSY. Following me, CEO, Nicholas and CFO Werner will report on our quite satisfactory conclusion to 2024 and on our characteristically consistent financial outlook for 2025. on purpose today as we reviewed our fifth year end as a public company is more so to benchmark our longer-term cumulative progress against the priorities for shareholders. To that end, here's how we present in the opening slide of our introductory Investor Relations deck, the differentiating versus to which we, with our investors, we think, aspire. I believe the year 2024 has substantially advanced on our track record of achieving these objectives. Following our long planning CEO succession that took effect in midyear, Nicholas will describe further organizational changes to more directly orchestrate product innovation within our overall strategy and to reinforce our hallmark advantage of technically focused leadership as appropriate for our engineering line. And during 2024, subscriptions increased to 90% of total revenues, durably sustaining greater than ever visibility, quality and consistency. Supporting our ongoing programmatic acquisition priorities in asset analytics, our landmark strategic acquisition in 2024 of Cesium has greatly broadened our platform ecosystem of geospatial digital twin developments. 2024 increase in adjusted operating income, inclusive of stock-based compensation, surmounted our established commitment of 100 basis points of margin improvement annually. With in 2024, a greater preponderance than ever of revenues recognized ratably and paid annually in advance, we directly and efficiently convert adjusted operating income inclusive of stock-based compensation into free cash flow, net stock-based compensation. Notwithstanding the majority of our ARR being consumption-based -- in recent years and especially in 2024, we have increased the sustainability and visibility of double-digit ARR growth through a greater prevalence for our accounts in our principal commercial program,…

Thank you, Greg. I wanted to start by expressing my gratitude to our colleagues for delivering another strong quarter and year. In terms of ARR growth, profitability and free cash flow we had a strong finish to 2024. The global demand environment remains robust across most sectors and geographies, and our users continue to be optimistic about end market conditions. We also announced a new Chief Operating Officer and organizational changes to accelerate innovation, which I will touch on later. . We entered the year well aligned with our users' priorities and well positioned to continue strong financial performance in 2025 and beyond. Our 2025 outlook is consistent with our longer-term framework of low double-digit ARR growth, 100 basis points of margin expansion and strong cash flow generation. Focusing now on Q4 highlights. ARR growth was 12% year-over-year and 12.5%, excluding the impact of China. Taking into consideration the impact of onboarded programmatic acquisitions and rounding, the results were very comparable to the year ago period. Turning next to our commercial models. Our E365 program continues to drive strong growth, in particular, from renewals with higher floors supported by consumption growth and still a sizable amount from conversions. Across our commercial models, our application mix accretion remained strong, but moderated by about 100 basis points, while our net revenue retention rebounded to our high watermark of 110%. For several reasons, we no longer find application mix accretion to be a useful measure of growth within existing accounts. One of those reasons is because it misses growth from offerings that are not user-based, which we anticipate seeing more of such as Bentley asset analytics. We, therefore, intend to introduce a new indicator that better reflects overall consumption growth. We believe we have a long runway of growth within our accounts as…

Thank you, Nicholas. We are pleased with our finish to a solid year of financial performance. Total revenues for the fourth quarter were $350 million, up 13% year-over-year on a reported and constant currency basis -- and for the full year, total revenues were $1.353 billion, up 10% on a reported and constant currency basis. Strong subscription revenues in the fourth quarter and full year were partly offset by lower services revenues due to reduced maximum related work within our digital integrator cohesive. Subscription revenues now represent 90% of total revenues, up more than 2 percentage points from 2023, improving the overall quality of our total revenues in terms of growth consistency, predictability and margin contribution. Subscription revenues grew 16% year-over-year for the quarter and 13% for the full year in reported and constant currency. The growth rate for the full year, of course, tends to more closely align with our year-over-year constant currency ARR growth. Our SMB and E365 initiatives continue to be solid contributors with E365 now representing 42% of 2024 subscription revenues, up from 38% in 2023 and 32% in 2022. Perpetual license revenues for the quarter grew 11% year-over-year in reported and 12% in constant currency. And for the full year, we are flat in reported and constant currency. Our service revenues declined 21% for the quarter and 18% for the year in reported and constant currency. Our last 12 months recurring revenues, which include subscriptions, and a small amount of recurring services increased by 13% year-over-year in reported and constant currency and represent now 91% of our total revenues, up 2 percentage points year-over-year. Our last 12 months constant currency account retention rate remained at 99%, and our constant currency recurring revenue net retention rate rebounded to 10% led by accretion within our consumption-based E365…

[Operator Instructions] Our first question comes from Matt Hedberg from RBC.

And congrats on another good year. I think, Greg, you really gave us some perspective on the results since the IPO, it was sort of great to see the progression, and it seems like we should expect more of that. On the call, you noted a robust demand environment, you noted that China continues to be a drag. And it seems like you addressed that at the high end of your full year ARR range, 50 bps lower than last year. I guess that said, there's a lot of positivity that you talked about on the call in terms of potential drivers. I guess when you step back and you think, this year, you were near the high end of the ARR range there in 2024, what are the 1 to 2 things that could propel you the higher end of the ARR range as you kind of embark on a new calendar year?

Nicholas, you're applying yourself to that?

I will be happy to. So the overall environment, demand environment is robust. You know that mining has been a bit slow in the past more than 1 year now, 1.5 years or so. It's a bit of a subdued environment for new mine exploration or enhancements or major expansions of existing mines. If this changes because of, for example, acceleration of permitting reform in the U.S. that is leading to new mine explorations, this could be an extra tailwind. The business is already very, very strong when it comes to PLS, so power line system for the transmission grid. But if permitting reform does accelerate, and it leads to an acceleration of the expansion of the electric grid, this could be an additional tailwind. So I think this will help. Now the 2 drags that we've seen for AR have been China, as discussed many, many times, and then even though it's a very small percentage of our business, it's a single-digit commercial facilities, if this were to improve as well, then of course, this will help. Look, in general, as we start the year, the trends are remarkably consistent with what we said every quarter last year. So the demand environment is just very similar to what we've been discussing for the past quarters. So anything that has been holding us back in 2024, if that improves, then of course, this will be extra tailwind.

Next question comes from Jason Celino from KeyBanc.

Nice to see you this morning. I did want to follow up on the permitting reform. So I agree with you that it could be a significant catalyst. I know we're still pretty early, but have you seen any signs that permitting reform has been introduced? Or how should we think about timing? Because I imagine the legislation has to go through and then customers have to approve things. But how should we think about that? Have you seen any signs today?

Well, we've seen an executive order calling for permitting reform, but it's still very early indeed, yes, a new U.S. administration. So no impact yet.

It is a bipartisan priority, however, and I think we can be very hopeful it will be accomplished during the year at least. Of course, that doesn't cause projects to start to flow immediately because there still is a need for permitting. But I think it's a matter of finally when, not if in the U.S. in permitting mean.

Next question comes from Siti Panigrahi from Mizuho.

I want to ask you about the macro environment, how do you compare -- and if you look at the data point, how it's trending versus last year? And then specifically in the U.S., now election is over and administration fondly in place. How do you characterize the change in priorities there versus expectation? And also, do you see any impact from those initiative?

I'm going to ask you, Nicholas, to talk about the world at large, and maybe I'll come back to the U.S.

Okay, Happy to. So look, in Europe, for example, despite the political volatility we've seen in France and very recent elections in Germany, elections back in Q4 when it comes to the U.K. or the second half of last year. There is a just strong alignment that infrastructure investments are needed. So it is a bipartisan topic. If you are not just in the U.S., as Greg is going to explain, but in Europe as well, the new government in the U.K. is as variable, if not more, for investments in infrastructure. So we expect the level of investment to be the same, if not higher. In Europe, the new European Commission has laid out its priorities of competitiveness and resiliency and security. And every single one of these priority is highly related to infrastructure. In fact, today, the European Commission talked about its plan for increasing competitiveness of Europe and it, again, referred to additional investments in infrastructure. So that's clear. So we see infrastructure investment going strong all around the world. There is a wide consensus that this is needed to support the economy, to improve the quality of life in some regions to secure energy to make sure infrastructure is resilient in front of climate change. Those are very, let's say, secular trends. The only country where we've seen a slowdown, as we discussed many times, it's China.

If I go back to the U.S., of course, we have a purposefully unpredictable administration here now. But the engineering organizations in the U.S. whose business is to read these key leagues are not concerned on my view of it is that they are already at their capacity, their resource capacity and do not see any possibility that there will be less federally funded infrastructure work, even though its mix will somewhat change possibly to our advantage.

Next question comes from Kristen Owen from Oppenheimer.

Thank you for the question. Nicholas, both you and Bernard touched on this in your prepared remarks, but the expectations around the asset analytics platform, notably in construction, just given what appears to be an acceleration of the labor gap in some of those construction trades -- how quickly do you see your site management capabilities ramping? And how does the monetization model differ from something in construction versus what you've previously outlined for us in both telecom and highways.

So when it comes to asset analytics, the commercial model, whether the capacities are used at the moment of construction are doing operations are the same. It's really asset based. The only question is how do we treat that revenue. If it's for construction, for example, installing new equipment of on resell tower and triple checking that it's well installed after the installation then it's not a recurring revenue for us as opposed to if it's used for continuous monitoring of the then it will be more -- it will be recurring. So that's the difference. But it's still asset base when it comes to towers, it's going to be mail-based when it comes to the road network monitoring and not user-based.

And we like both opportunities, the majority is in asset operations, but construction is a nice way to start. And once there is a digital twin from construction, we think we stand a good chance of, in fact, having it renewed during asset operations, but that's also often a different sale to a different party, and we can't take that for granted. But all of the opportunities are burgeoning in this, and we're learning about the business model potential for this asset-based monetization.

The next question comes from Dylan Becker from William Blair.

I appreciate the question. Maybe Nicholas, for you. I wanted to -- you called out kind of Jason and Julian coming on board. Wondering if you could kind of highlight or flag the opportunity and kind of what excites you most? You called out kind of data readiness, data management is a key initiative, obviously, has the expertise coming from Google on that side of the equation and the streamlining of the product development motion under Julian's team, how that can kind of accelerate value and innovation for customers as well.

Yes. Well, my excitement is on AI. Yes. It truly is our generations paradigm shift, yes. It's a profound technological change. And it's the reason why we decided to, let's say, simplify our product and technology organization, in order to be able to operate with more agility, more precision, more speed to accelerate innovation, right? So that's the driver behind the reorganization of our product technology organization under our CTO. So there's strong alignment between execution with technology strategy, which is very needed at this time of profound changes. But yes, you indeed noted it as well, James, who joined us from Google had the responsibility of AI at Google Cloud, AI investments at Google Cloud. So he's coming with a formidable network and in the, let's say, broader software community when it comes to AI investments and a lot of knowledge to share with us to help accelerate those investments.

I might say this is exciting to me because taking hierarchy out of our product organization is meant to hark back to our roots, if you like, with the bent lease primarily being hands on and early identifying new opportunities. There was nothing wrong with how we were organized before. But our business has become so steady. You've heard me say, I'd like to introduce some volatility, take some risks, play some markers and I'm very excited about this new team doing that.

And the next question comes from Jay Vleeschhouwer from Griffin Securities.

Thank you -- you noted the multiple responsibilities for the new Chief Operating Officer, are there 2 or 3 principal objectives or executables for the COO role that you would like to see for this year and beyond. For example, at the investor meeting in Vancouver a few months ago, you noted that you had integrated your customer success and account teams. Maybe talk about how that's going or other go-to-market jetties that the COO has.

Thanks for that question, Jay. And then just to be clear, the scope of the CEO is quite different from the scope I had when I was the COO. So the sales and marketing and success management teams are all report straight to me, yes. But we did combine India account management and Success Management under Brock, our Chief Revenue Officer; and this has helped tremendously in making sure that we have 1 account plan. We're actually clear for each account on what are the growth opportunities for consumption, and we execute very seamlessly about it. The overall, let's say, team here is simplification. The same way that we've combined account and success management together. On the product side, we've combined product and technology together. So simplification in order to have more agility, be able to execute with more precision and speed. So now when it comes to James as our COO, so he does have a cross functional role, helping in both planning and execution and making sure that we are coordinated. It will be at a high level of what I just described. It will be, for example, on the industry solution dimension that we've talked about many times, Jay, this now reports to him, right? So keeping the industry dimension, front planning all the way to go to market. But he's also in charge of portfolio development. And a big priority we have is on asset analytics, talking about which he has also the responsibility of some of our growth initiatives, including asset analytics. I might say that.

Something that comes out from James. He is a very -- he's a proponent of commercial innovation and commercial models and engineering. I use the term engineering the way in which we monetize and bring us some new learnings from that, that I'm enthused about.

The next question comes from Michael Funk from Bank of America.

So Nicolas, I think in your prepared remarks, you mentioned that the new administration, there would be some shift in infrastructure spending. So for example, towards roads and away from other projects. Could that shift create an air pocket at all in demand from those customers if they also shift their focus, their priorities maybe from 1 project to another and just the uncertainty created by that potential shift? Should we expect any kind of air pocket in demand.

I don't think so for the simple reasons that the engineering firms in the U.S. are already quite busy and their backlogs are extending 1 year, if not more out. So it's going to be a shift in terms of projects -- new projects potentially coming in, yes. But there's a bit of a lag before it hits actually the engineering firms and then their use of our software, right? Now we are very well positioned to benefit from any infrastructure investments regardless of the infrastructure assets whether we're talking about more traditional energy productions or renewables, whether we're talking about roads as opposed to railway, a major expansion of airports across all infrastructure assets, we have a very broad portfolio of products to help.

Yes, I'll just say, generally, I think the expectation continues to be that the spending is pushed further out for longer, which corresponds to the capacity in any case. And there is discussion in Congress at the federal level in the U.S. over the next infrastructure initiative following the JA. And of course, our users are very experienced readers of these tea leaves, and they have great confidence.

The next question comes from Alexei Gogolev from JPMorgan.

I had a question about the competitive environment. Maybe you could talk about how it has fared in the last 12 months, we've noticed that some of your competitors claims that they've taken some share from you. So could you maybe comment on that and talk about what you see evolving across different markets?

I think it's clear that for those competitors who are very focused on commercial facilities, for example, because of the slowdown, they've been trying very hard to get into infrastructure, civil infrastructure in particular. You can see our growth, which is very consistent. We're not losing share to anyone. We've seen some competitors doing some desperate measures, for example, dropping their price quite a lot. And it was quite reassuring to see that our accounts are sticking with us that this is not enough of an argument for them to use competitive products. Look, when it comes to infrastructure, jay is just no other competitor out there that is that dedicated to infrastructure and has that breadth and depth of portfolio of products like we have. So this -- the fact that we remain very focused over the past few years is definitely paying dividends. No pun intended.

The next question comes from Joshua Tilton from Wolfe Research.

Yes. I kind of at a high level one, maybe just backing up a little bit. I know a bunch of questions have been asked. But maybe just everything you spoke to in the prepared remarks, the election, the changes, what's going on in China. It just -- it feels like there's a lot of moving pieces. And I guess if we were to simplify all the moving pieces that you see heading into this year, do you believe that the demand environment is more less or the same favorable in '25 than it was in '24. And I'm just -- I guess I'm just trying to understand like how we're supposed to interpret all the different moving pieces as it pertains to your demand in the business environment for you this year?

Well, I think the overall picture is that things are full up. The infrastructure engineering community it could hardly be any busy or elsewhere, and that won't change foreseeably, but in China, I have to say how disappointing China is. It's qualitatively -- this is the first year 2025, in which we do not have an internal plan to grow or even maintain our level of business in China. Every other year, we haven't counted on it, but we have believed it would be possible. Because of the good match between our products and the demand in China, we have hoped we could at least sustain it. Our plan for this year is a plan to continue to lose business in China. It's at the level where the state-owned enterprises, the CEOs have to personally vouch for any use they make of American Software. They have to attest that there isn't a domestic alternatives. It's never been that bad before. And in that environment, we can't hang on. So that is, I think, the principal difference. That's the 0.5 point at the top. There is not a way that we can see to maintain our business in China during 2025. Who knows what might happen geopolitically, I suppose we should be put nothing outside the realm of possibility but we don't see any possible way to sustain that in 2025. Elsewhere in the world, that's not the picture at all.

Elsewhere in the world, it's very consistent, and it's very favorable. So that's to summarize, yes, consistent, favorable demand backdrop, the on exceptional being in China.

Super helpful. Maybe just a very quick follow-up on the China thing. I just want to make sure I understand it here correctly. In the past, the China headwind has been mostly ARR and the choice for perpetual. And now going forward, you're saying it's not just that there's a headwind to total business because they are choosing to look for local alternatives instead of U.S.-based software?

Well, not all the business there is state-owned enterprises. And there are highlights in Hong Kong and SMB, but the economy there and the change in spending is also notable. We'd be talking about that alone if it weren't for the geopolitical issues as well. So combined, this year, realistically, we can't even get back to a level in China. . Well, it's still 25% of the world's infrastructure engineering, and we still have a good mix between our products and demand there. We just need to get somehow more creative yet, and that's where James with on-the-ground experience in China and different business models. It's 1 of his projects to consider how we get ours in the long term there.

The next question is will come from Matt Martino from Goldman Sachs.

Greg, Nicholas, you guys made reference to the launch of Open Sight Plus and some of the AI powered features there. It's clear badly starting to infuse AI across the product portfolio. So I'm wondering to what extent these new AI-powered features are starting to benefit your renewal activity and how you think about the opportunity more holistically to monetize your growing AI portfolio over time?

I think it's -- the revenue impact is going to be very marginal this year when it comes to Open Sight Plus because the product is in early access, and we're planning GA towards the end of the year, right? Where we're having are generating traction with AIs with asset analytics. So it's AI applied to asset operations. We think the opportunity is big on both fronts. . AI for Asset Analytics operations. This is a -- we talked about it at some point, a potential on top term of 9 digits -- and then when it comes to AI for, let's say, design, we're just at the beginning of this, but we think this has a lot of potential not just to sustain our growth, but in the long term to even potentially accelerate it.

Last question comes from Blair Abernathy from Rosenblatt Securities.

And nice quarter. I just wanted to ask you maybe dig in a little bit more on the data center opportunity as it sits today. there's clearly still a lot of spending going on here in North America. Maybe talk about sort of what you're seeing overseas. And what does this really show up in your numbers? Is it on the commercial side, was it on the infrastructure side or both? Just kind of give us a little more color on the data center side.

Maybe all of the above because data centers are a bit like mini cities besides the building itself, there is an entire infrastructure around it for transportation for electricity for water. So this obviously can become some growth policy by its own but indirectly as well because there's so much electricity, which is needed in order to power those data centers. It can lead to extension of the transmission grid which we'll be benefiting from as well, yes. We can even help by the way with our sequence software to help understand where aquifiers are in order to be able to tap into underground water to help with the cooling of data centers. So we can help all of the above. We can also help underground, and we can help across the asset life cycle. We have software for the design but also for the construction and then obviously for the operations of, let's say, the system of systems, these mini cities that data centers represent.

But all of that, Blair, would not appear in commercial facilities. It would appear in industrial resources and public works and utilities, among our sectors.

That concludes our call today. We thank you for your interest in time in Bentley Systems. Please reach out to Investor Relations with further questions and follow-up, and we look forward to updating you on our performance in coming quarters. Thanks a lot.