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Bentley Systems (BSY)
NASDAQ:BSY
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Bentley Systems
(NASDAQ:BSY)
80Outperform
Positive Factors
Demand and Growth
ARR growth of 12% was above the midpoint of full-year guidance, indicating strong demand.
Financial Performance
Bentley Systems reported strong results with subscription revenue 2.2% above Street consensus.
Strategic Outlook
Management reiterated revenue and ARR growth guidance, which is seen as an upbeat development.
Negative Factors
International Challenges
Demand broadly strong, but FX and China weigh on growth.
Market Limitations
There is a limited catalyst path to drive upside to shares.
Bentley Systems (BSY) vs. S&P 500 (SPY)
Market Cap
$13.25B
Dividend Yield0.54%
Average Volume (3M)1.52M
Price to Earnings (P/E)60.6
Beta (1Y)0.86
Revenue Growth10.71%
EPS Growth-27.64%
CountryUS
Employees5,500
SectorTechnology
Sector Strength66
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.35
Shares Outstanding291,190,430
10 Day Avg. Volume1,092,808
30 Day Avg. Volume1,522,559
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.28
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit15.48
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$51.64Price Target Upside9.73% 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 primarily through the sale of software licenses and subscriptions. The company offers a range of software products under different licensing models, including perpetual licenses, term licenses, and subscriptions, catering to various customer needs. Additionally, Bentley provides maintenance and support services, which contribute to recurring revenue streams. The company's revenue is also bolstered by its comprehensive training and professional services, assisting clients in maximizing the value of their software investments. Significant partnerships with engineering firms, governments, and infrastructure owners further enhance Bentley's market reach and revenue potential.
Bentley Systems Key Performance Indicators (KPIs)
Any
Annualized Recurring Revenue
Measures the predictable revenue generated from subscriptions or ongoing services, highlighting stability and growth potential in the company's business model.
Measures the predictable revenue generated from subscriptions or ongoing services, highlighting stability and growth potential in the company's business model.
Data provided by:
Main Street Data
Main Street DataBentley Systems Financial Statement Overview
Summary
Bentley Systems exhibits strong financial health with substantial revenue and cash flow growth. The income statement reflects a high gross profit margin, though the net profit margin has dipped slightly. The balance sheet shows moderate leverage with a commendable ROE, and cash flow statements indicate excellent liquidity management. Overall, financial statements suggest robust operational performance with a need to monitor profitability margins.Income Statement
Bentley Systems shows strong revenue growth with a 10.2% increase from 2023 to 2024. The gross profit margin is high at 80.9%, indicating effective cost management. However, the net profit margin decreased to 17.3% from 26.6% in the previous year, reflecting increased costs or reduced efficiency in operations.―
Balance Sheet
The company's debt-to-equity ratio stands at 1.37, indicating moderate leverage relative to equity. Return on Equity (ROE) improved to 22.6%, showcasing efficient use of equity to generate profits. The equity ratio is stable at 30.6%, reflecting a balanced asset financing structure. However, the high debt level could pose a risk if not managed properly.82
Cash Flow
Bentley Systems experienced a 7.5% growth in free cash flow, highlighting strong cash generation. The operating cash flow to net income ratio is robust at 1.85, suggesting effective cash management. The free cash flow to net income ratio is high, indicating that the company is generating more cash than its net income, which is a positive sign of liquidity.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.35B | 1.23B | 1.10B | 965.05M | 801.54M | Gross Profit |
| 1.10B | 910.24M | 862.07M | 748.51M | 634.39M | EBIT |
| 302.15M | 230.54M | 208.61M | 94.59M | 150.15M | EBITDA |
| 382.44M | 288.44M | 297.63M | 152.34M | 206.03M | Net Income Common Stockholders |
| 234.79M | 326.79M | 174.78M | 93.19M | 126.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 64.01M | 68.41M | 71.68M | 329.34M | 122.01M | Total Assets |
| 3.40B | 3.32B | 3.17B | 2.66B | 1.13B | Total Debt |
| 1.43B | 1.57B | 1.82B | 1.49B | 294.38M | Net Debt |
| 1.36B | 1.50B | 1.75B | 1.16B | 172.37M | Total Liabilities |
| 2.36B | 2.44B | 2.59B | 2.25B | 784.44M | Stockholders Equity |
| 1.04B | 883.28M | 572.75M | 409.22M | 341.60M |
| Cash Flow | Free Cash Flow | |||
| 421.25M | 391.69M | 255.78M | 270.49M | 241.89M | Operating Cash Flow |
| 435.29M | 416.70M | 274.32M | 288.02M | 258.34M | Investing Cash Flow |
| -143.27M | -60.50M | -770.13M | -1.06B | -117.33M | Financing Cash Flow |
| -289.85M | -359.07M | 243.03M | 982.58M | -136.51M |
Bentley Systems Technical Analysis
Positive
47.06
Price Trends
42.23
Positive
44.43
Positive
46.71
Positive
Market Momentum
0.88
Negative
71.46
Negative
87.36
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 47.06 is above the 20-day moving average (MA) of 43.44, above the 50-day MA of 42.23, and above the 200-day MA of 46.71, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 71.46 is Negative, neither overbought nor oversold. The STOCH value of 87.36 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $10.03B | 23.22 | 12.77% | ― | 15.05% | 31.05% | |
80 Outperform | $13.25B | 60.58 | 25.21% | 0.54% | 10.71% | -27.64% | |
76 Outperform | $7.81B | 45.09 | 39.29% | 0.13% | 14.29% | 151.38% | |
74 Outperform | $14.17B | 29.73 | 21.59% | ― | 19.81% | 139.58% | |
71 Outperform | $11.14B | 52.45 | 89.60% | ― | 9.18% | 14.35% | |
67 Neutral | $17.71B | 528.94 | -1.34% | ― | 17.16% | 67.81% | |
60 Neutral | $10.83B | 10.47 | -6.71% | 2.99% | 7.73% | -12.97% |
* Technology Sector Average
Performance Comparison
BSY
Bentley Systems
47.06
-8.13
-14.73%
GWRE
Guidewire
213.42
96.86
83.10%
MANH
Manhattan Associates
186.86
-30.87
-14.18%
NICE
NICE
163.77
-61.38
-27.26%
PEGA
Pegasystems
93.96
32.60
53.13%
DT
Dynatrace
48.55
2.34
5.06%
Bentley Systems Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 7.52%|
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 Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Bentley Systems Appoints New COO and Restructures Leadership
Positive
Jan 13, 2025
Bentley Systems has appointed James Lee as Chief Operating Officer effective January 13, 2025. Lee, with previous experience at Google and SAP, will enhance Bentley’s operational excellence and oversee growth initiatives, including Bentley Asset Analytics. The company is also consolidating product development under Chief Technology Officer Julien Moutte, eliminating the Chief Product Officer role, and positioning itself to leverage AI for infrastructure advancements.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.