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Bentley Systems (BSY)
NASDAQ:BSY
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Bentley Systems
(NASDAQ:BSY)
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Rating:65Neutral
Price Target:
$56.00
▲(7.46% Upside)
Bentley Systems' overall score is driven by strong financial performance and positive earnings call insights, highlighting growth in ARR and strategic initiatives. However, technical indicators suggest weak momentum, and high valuation metrics indicate potential overvaluation. Challenges in specific regions and declining cash flow growth are concerns.
Positive Factors
Strong ARR Growth
The robust ARR growth and high net revenue retention rate indicate strong customer loyalty and recurring revenue, supporting long-term financial stability.
Record SMB Performance
Continued growth in the SMB segment suggests expanding market reach and diversification, enhancing revenue stability and reducing dependency on larger clients.
Increased Free Cash Flow Guidance
Raising free cash flow guidance reflects improved operational efficiency and financial health, providing more resources for strategic investments and debt reduction.
Negative Factors
Reliance on Debt
While leverage management has improved, a moderate debt-to-equity ratio still suggests reliance on debt, which could pose risks if not carefully managed.
Declining Professional Services Revenue
A decline in professional services revenue could indicate challenges in cross-selling and upselling, potentially affecting overall revenue diversification.
China Revenue Impact
Economic and geopolitical challenges in China affecting ARR growth highlight regional risks that could impact global expansion and revenue stability.
Bentley Systems (BSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.87B
Dividend Yield0.52%
Average Volume (3M)1.51M
Price to Earnings (P/E)67.1
Beta (1Y)0.70
Revenue Growth10.45%
EPS Growth-32.43%
CountryUS
Employees5,500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.32
Shares Outstanding292,093,300
10 Day Avg. Volume1,393,282
30 Day Avg. Volume1,506,893
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue13.49
Enterprise Value/Gross Profit16.74
Enterprise Value/Ebitda47.76
Forecast
1Y Price Target
$59.55Price Target Upside14.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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 through a subscription-based model, offering software licenses, maintenance, and support services. Key revenue streams include recurring subscriptions for its software products, which provide customers with continuous access to updates and technical support. Additionally, Bentley earns revenue from professional services, such as consulting and training, that assist clients in implementing their software solutions. Significant partnerships with major engineering and construction firms enhance its market reach and contribute to its earnings by embedding Bentley's software within large-scale infrastructure projects.
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:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
Bentley Systems reported strong growth in ARR and SMB performance, successful integration of Cesium, and increased free cash flow guidance. However, challenges remain with declining professional services revenue, impacts from China, and softness in the ANZ region.Q2-2025 Updates
Positive Updates
Strong ARR Growth
ARR grew 11.5% year-over-year and 12% excluding the impact of China, with a net revenue retention rate of 109%.
Record SMB Performance
For the 14th consecutive quarter, Bentley added more than 600 new SMB logos, indicating strong growth in the SMB segment.
Cesium Developer Conference Success
The first Cesium Developer Conference attracted over 400 attendees, showcasing Cesium's integration with Bentley's iTwin capabilities.
Increased Free Cash Flow Guidance
Free cash flow guidance was increased to a range of $430 million to $470 million, up from $415 million to $455 million, due to tax benefits from new legislation.
Strong Regional Performance
Growth in the Americas, particularly Latin America, and solid performance in EMEA with strong investment in infrastructure projects.
Negative Updates
Professional Services Revenue Decline
Professional services revenues declined 7% for the quarter, and now represent 6% of total revenues, down 1 percentage point from the same period last year.
China Revenue Impact
ARR growth was impacted by ongoing economic and geopolitical headwinds in China, which now represents only about 2% of total ARR.
ANZ Performance Softness
Australia and New Zealand (ANZ) were softer, primarily due to a slowdown in transportation spending in Australia.
Seasonal ARR Growth Challenges
Seasonal low expected in '25 Q3 for ARR growth due to timing of acquisitions and anticipated asset analytics deals.
Company Guidance
During Bentley Systems' Q2 2025 earnings call, the company provided robust guidance, emphasizing consistent performance and strategic growth initiatives. The company reported a 10% increase in total revenues to $364 million, with subscription revenues comprising 92% of the total. Bentley's ARR grew by 11.5% year-over-year, excluding China, and the net revenue retention rate was 109%. The company's focus on infrastructure investment and digital transformation was highlighted as key growth drivers, particularly in the SMB segment, which saw significant new logo additions. Bentley raised its free cash flow outlook to a range of $430 million to $470 million, reflecting favorable tax benefits and strong operating performance. The company's commitment to AI, asset analytics, and strategic acquisitions were underscored as pivotal to sustaining long-term growth.Bentley Systems Financial Statement Overview
Summary
Bentley Systems shows strong profitability with high gross and net profit margins. Revenue growth is steady, but there's a slight decline in gross profit margin. The balance sheet indicates improved leverage management, though reliance on debt remains a concern. Cash flow performance is mixed, with declining free cash flow growth being a notable issue.Income Statement
Bentley Systems demonstrates strong profitability with a consistent gross profit margin above 80% and a net profit margin around 18% in TTM. The company has shown steady revenue growth, albeit at a slower pace recently. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.85
Very Positive
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 1.17 in TTM, which has improved from previous years, indicating better leverage management. Return on equity is robust at 23.47%, reflecting effective use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.70
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth in TTM, which is a concern. The operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains strong, suggesting that the company is still generating sufficient cash relative to its net income.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.35B | 1.23B | 1.10B | 965.05M | 801.54M |
| Gross Profit | 1.14B | 1.10B | 910.24M | 862.07M | 748.51M | 634.39M |
| EBITDA | 401.10M | 378.19M | 288.44M | 297.63M | 152.34M | 206.03M |
| Net Income | 254.27M | 234.79M | 326.79M | 174.78M | 93.19M | 126.52M |
Balance Sheet | ||||||
| Total Assets | 3.42B | 3.40B | 3.32B | 3.17B | 2.66B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 89.65M | 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 | 2.26B | 2.36B | 2.44B | 2.59B | 2.25B | 784.44M |
| Stockholders Equity | 1.16B | 1.04B | 883.28M | 572.75M | 409.22M | 341.60M |
Cash Flow | ||||||
| Free Cash Flow | 433.75M | 421.25M | 391.69M | 255.78M | 270.49M | 241.89M |
| Operating Cash Flow | 448.24M | 435.29M | 416.70M | 274.32M | 288.02M | 258.34M |
| Investing Cash Flow | -139.46M | -143.27M | -60.50M | -770.13M | -1.06B | -117.33M |
| Financing Cash Flow | -276.36M | -289.85M | -359.07M | 243.03M | 982.58M | -136.51M |
Bentley Systems Technical Analysis
Negative
52.11
Price Trends
54.63
Negative
52.43
Negative
48.43
Positive
Market Momentum
-0.49
Positive
41.13
Neutral
22.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Negative. The current price of 52.11 is below the 20-day moving average (MA) of 53.27, below the 50-day MA of 54.63, and above the 200-day MA of 48.43, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 22.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | 21.47B | 27.70 | 11.63% | 1.17% | 6.75% | 15.99% | |
72 Outperform | 12.85B | 58.44 | 79.34% | ― | 6.13% | 9.17% | |
71 Outperform | 10.30B | 52.05 | 35.26% | 0.13% | 12.47% | 65.19% | |
71 Outperform | 22.62B | 74.68 | 8.44% | ― | 10.69% | 45.43% | |
68 Neutral | 20.01B | 293.65 | 4.79% | ― | 22.64% | ― | |
65 Neutral | $15.87B | 67.10 | 23.69% | 0.52% | 10.45% | -32.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
BSY
Bentley Systems
52.11
1.56
3.09%
GWRE
Guidewire
234.54
56.57
31.79%
MANH
Manhattan Associates
209.70
-70.55
-25.17%
PEGA
Pegasystems
58.29
22.25
61.74%
SSNC
SS&C Technologies Holdings
87.12
14.10
19.31%
TYL
Tyler Technologies
522.22
-55.30
-9.58%
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.