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Bentley Systems (BSY)
NASDAQ:BSY
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Bentley Systems
(NASDAQ:BSY)
Rating:81Outperform
Price Target:
$55.00
▲(4.48%Upside)
Positive Factors
Earnings
Bentley Systems reported strong results with subscription revenue 2.2% above Street consensus.
Financial Performance
ARR growth of 12% was above the midpoint of full-year guidance, indicating strong demand.
Strategic Outlook
Management reiterated revenue and ARR growth guidance, which is seen as an upbeat development.
Negative Factors
Geopolitical Impact
Demand broadly strong, but FX and China weigh on growth.
Market Challenges
China continues to face challenges from economic conditions and state-owned enterprises' preferences for local software alternatives.
Bentley Systems (BSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.97B
Dividend Yield0.53%
Average Volume (3M)1.76M
Price to Earnings (P/E)66.9
Beta (1Y)0.81
Revenue Growth10.71%
EPS Growth-27.64%
CountryUS
Employees5,500
SectorTechnology
Sector Strength86
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.35
Shares Outstanding291,843,800
10 Day Avg. Volume1,911,965
30 Day Avg. Volume1,762,326
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)19.95
Price to Sales (P/S)0.00
P/FCF Ratio44.68
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit11.80
Enterprise Value/Ebitda8.99
Forecast
1Y Price Target
$52.60Price Target Upside-0.08% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Bentley Systems Business Overview & Revenue Model
Company DescriptionBentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling and open simulation applications for infrastructure design integration, which include MicroStation, OpenRoads, OpenRail, OpenPlant, OpenBuildings, OpenBridge, OpenSite, OpenFlows, STAAD and RAM, SACS, MOSES, AutoPIPE, SITEOPS, CUBE, DYNAMEQ, EMME, and LEGION; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including Leapfrog, AGS Workbench, GeoStudio, Imago, MX Deposit, Oasis montaj, PLAXIS, and OpenGround. It also provides project delivery systems that support collaboration, work-sharing, and 4D construction modeling for infrastructure project delivery enterprises, such as ProjectWise, ProjectWise Design Review Service, and SYNCHRO; and asset and network performance systems, such as AssetWise ALIM, AssetWise Asset Reliability, AssetWise Enterprise Interoperability, AssetWise 4D Analytics, AssetWise Linear, and Seequent Central. In addition, it offers industry solutions comprising AssetWise Linear SUPERLOAD, AssetWise Linear Analytics, AssetWise Inspections, ContextCapture, OpenCities, OpenUtilities, OpenTower, OpenWindPower, Power Line, SPIDA, OrbitGT, sensemetrics, PlantSight, and WaterSight. The company serves civil, structural, geotechnical, geoscience subsurface engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers. Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.
How the Company Makes MoneyBentley Systems generates revenue primarily through the sale of software licenses and subscriptions for its infrastructure engineering solutions. The company offers its products on both perpetual license models and subscription-based models, including term licenses and enterprise agreements. Key revenue streams include software sales, subscriptions, and recurring maintenance and support services. Bentley also earns from its professional services, which provide consulting and implementation services to help clients optimize their use of Bentley's software. Significant partnerships with infrastructure engineering firms and government agencies enhance its market reach and contribute to earnings by integrating its solutions into large-scale infrastructure projects globally.
Bentley Systems Key Performance Indicators (KPIs)
Any
Annualized Recurring Revenue
Shows the predictable revenue Bentley Systems expects to generate annually from its subscription services, highlighting the stability and growth of its business model.
Shows the predictable revenue Bentley Systems expects to generate annually from its subscription services, highlighting the stability and growth of its business model.
Data provided by:
Main Street Data
Main Street DataBentley Systems Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 20.46%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong ARR growth, robust subscription revenues, and a resilient business model. Despite some challenges in the professional services segment and geopolitical headwinds in China, the company remains well-positioned with solid geographical diversification and a positive outlook in the U.S. infrastructure market.Q1-2025 Updates
Positive Updates
Strong ARR Growth
ARR growth was 12% year-over-year and 12.5% excluding the impact of China. The E365 program continues to be a growth driver, and 300 basis points of ARR growth came from new logos.
Record Subscription Revenue
Subscription revenues grew 11% year-over-year, now representing 92% of total revenues, improving growth consistency, predictability, and margin contribution.
Geographical Diversification
India was a key growth driver in the Asia-Pacific region, and Latin America stood out in the Americas. Solid growth was also recorded in EMEA, with significant investments in Europe and the Middle East.
Resilient Business Model
Recurring revenues reached a high watermark of 92% of total revenues, and our direct sales model is at 94%. ARR from infrastructure owner-operators has reached parity with ARR from engineering and construction contractors.
Positive U.S. Infrastructure Outlook
The U.S. market remains strong with IIJA funding continuing for at least another 18 months, and state and local government contract awards in Q1 were up 34% year-over-year.
Negative Updates
Decline in Professional Services Revenue
Professional services revenues declined 18% for the quarter, highlighting the volatility and lower margin contribution of this revenue segment.
Challenges in China
China, representing less than 2.5% of total ARR, faced economic and geopolitical headwinds, impacting overall growth.
Slower Sequential ARR Growth
The quarterly sequential ARR growth rate was 2.1%, slightly below the previous year's 2.2%, with expectations for back-half loaded growth.
Company Guidance
During the call, Bentley Systems provided detailed guidance for their fiscal year 2025, with a strong focus on metrics such as Annual Recurring Revenue (ARR) growth, profitability, and cash flow. They reported a 12% year-over-year ARR growth for Q1 2025, despite global macro uncertainties, with net revenue retention remaining at 110%. The company's subscription revenues now represent 92% of total revenues, up from the previous year, reflecting a strategic shift towards more predictable and consistent revenue streams. Bentley's E365 program continues to be a key growth driver, contributing significantly to ARR from both renewals and new logos. The company emphasized their intention to maintain low double-digit ARR growth and achieve 100 basis points of margin expansion. They also highlighted their strategic focus on infrastructure sectors such as public works and utilities, which continue to show robust growth, while their exposure to more cyclically sensitive sectors like commercial facilities has decreased. Bentley's strong balance sheet and free cash flow generation support their ongoing investments and shareholder returns, with their financial outlook for 2025 remaining intact.Bentley Systems Financial Statement Overview
Summary
Bentley Systems exhibits strong financial performance with notable revenue growth, high profitability margins, and robust cash flow generation. A balanced balance sheet with manageable leverage further supports its financial health.Income Statement
Bentley Systems shows robust revenue growth of 26.9% year-over-year in TTM, indicating strong demand for its software solutions. Gross profit margin remains high at 80.6%, reflecting efficient cost management. Net profit margin is solid at 18.5%, with a slight improvement over the previous year, showing consistent profitability. EBIT and EBITDA margins are stable at 23.6% and 28.9% respectively, underscoring operational efficiency.88
Very Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 1.17, which is typical for its industry, though improved from previous years. Return on Equity (ROE) is strong at 23.3% in TTM, showcasing effective use of equity capital. The equity ratio is 32.2%, indicating a solid balance between equity and debt financing, although there is room for strengthening the equity position.75
Positive
Cash Flow
Operating cash flow has increased, providing a strong base for future investments and debt servicing. Free cash flow growth is healthy at 3.6% year-over-year, aligning with the company's expansion strategies. The operating cash flow to net income ratio is robust at 1.76, highlighting excellent cash conversion from earnings. Free cash flow to net income ratio is 1.71, indicating substantial liquidity to support growth initiatives.90
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.39B | 1.35B | 1.23B | 1.10B | 965.05M | 801.54M |
| Gross Profit | 1.12B | 1.10B | 910.24M | 862.07M | 748.51M | 634.39M |
| EBITDA | 401.26M | 378.19M | 288.44M | 297.63M | 152.34M | 206.03M |
| Net Income | 255.84M | 234.79M | 326.79M | 174.78M | 93.19M | 126.52M |
Balance Sheet | ||||||
| Total Assets | 3.40B | 3.40B | 3.32B | 3.17B | 2.66B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 83.64M | 64.01M | 68.41M | 71.68M | 329.34M | 122.01M |
| Total Debt | 1.28B | 1.43B | 1.57B | 1.82B | 1.49B | 294.38M |
| Total Liabilities | 2.31B | 2.36B | 2.44B | 2.59B | 2.25B | 784.44M |
| Stockholders Equity | 1.10B | 1.04B | 883.28M | 572.75M | 409.22M | 341.60M |
Cash Flow | ||||||
| Free Cash Flow | 436.25M | 421.25M | 391.69M | 255.78M | 270.49M | 241.89M |
| Operating Cash Flow | 449.74M | 435.29M | 416.70M | 274.32M | 288.02M | 258.34M |
| Investing Cash Flow | -142.46M | -143.27M | -60.50M | -770.13M | -1.06B | -117.33M |
| Financing Cash Flow | -364.22M | -289.85M | -359.07M | 243.03M | 982.58M | -136.51M |
Bentley Systems Technical Analysis
Positive
52.64
Price Trends
47.28
Positive
45.15
Positive
46.69
Positive
Market Momentum
1.52
Negative
76.23
Negative
88.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Positive. The current price of 52.64 is above the 20-day moving average (MA) of 49.84, above the 50-day MA of 47.28, and above the 200-day MA of 46.69, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 76.23 is Negative, neither overbought nor oversold. The STOCH value of 88.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSY.
Bentley Systems Risk Analysis
Bentley Systems disclosed 37 risk factors in its most recent earnings report. Bentley Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bentley Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.97B | 66.92 | 25.20% | 0.53% | 10.71% | -27.64% | |
80 Outperform | $9.13B | 51.85 | 39.29% | 0.23% | 14.29% | 151.35% | |
79 Outperform | $16.45B | 34.40 | 20.86% | ― | 18.75% | 208.06% | |
78 Outperform | $11.98B | 56.23 | 89.60% | ― | 9.18% | 14.35% | |
76 Outperform | $10.62B | 23.11 | 13.40% | ― | 12.62% | 26.45% | |
71 Outperform | $19.82B | 597.77 | 2.61% | ― | 18.61% | ― | |
63 Neutral | $33.22B | 5.99 | -11.76% | 1.91% | 5.54% | -19.87% |
* Technology Sector Average
Performance Comparison
BSY
Bentley Systems
52.64
3.88
7.96%
GWRE
Guidewire
235.40
96.41
69.36%
MANH
Manhattan Associates
197.25
-48.03
-19.58%
NICE
NICE
165.09
-3.51
-2.08%
PEGA
Pegasystems
53.32
23.72
80.14%
DT
Dynatrace
54.89
9.82
21.79%
Bentley Systems Corporate Events
Shareholder MeetingsDividends
Bentley Systems Announces Dividend at Annual Meeting
Positive
May 27, 2025
On May 22, 2025, Bentley Systems held its Annual Meeting of Stockholders, where key proposals were voted on, including the election of directors and the approval of executive compensation. The company also announced a $0.07 per share dividend for the second quarter of 2025, payable on June 12, 2025, reflecting its ongoing commitment to returning value to shareholders.
The most recent analyst rating on (BSY) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Bentley Systems stock, see the BSY Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.