Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Bentley Systems, Incorporated (NASDAQ:BSY) specializes in software solutions for infrastructure engineering, competing with companies like Autodesk and Trimble while focusing on infrastructure [1] Performance Summary - BSY's stock has gained approximately 0.64% over the past 30 days, indicating investor confidence and resilience [2][6] - The stock experienced a minor decline of about 1.85% in the last 10 days, which may present a buying opportunity for potential investors [2] Growth Potential - The estimated stock price growth potential for BSY is approximately 25.97%, suggesting the stock is currently undervalued and presents an attractive opportunity for growth-oriented investors [3][6] Fundamental Strength - BSY has a Piotroski Score of 9, the highest possible score, indicating robust financial health based on profitability, leverage, liquidity, and operating efficiency [4][6] - Analysts have set a target price of $49.33 for BSY, reflecting expectations of the stock's potential value and serving as a benchmark for future performance [5]

Core Viewpoint - Bentley Systems, Incorporated (NASDAQ:BSY) is viewed as a promising growth stock, although recent price target reductions by analysts indicate a cautious outlook for the company in the near term [1][2]. Analyst Price Target Adjustments - Barclays analyst Guy Hardwick reduced the price target for Bentley Systems from $57 to $47 while maintaining an 'Equal Weight' rating, reflecting a revised outlook for industrial technology and distribution in 2026 [1]. - RBC Capital's Matthew Hedberg also lowered the price target from $65 to $48, keeping an 'Outperform' rating, indicating a more optimistic view despite the price cut [2]. Industry Outlook - The year 2026 is anticipated to be significant for companies with strong enterprise AI adoption, as AI-related growth drivers are expected to become more apparent, while less-prepared companies may struggle [3]. - Despite conservative management guidance for early 2026, enterprise spending is showing signs of stabilization and improvement in certain sectors, driven by innovations powered by Generative AI [3]. Company Overview - Bentley Systems, Incorporated is a Pennsylvania-based provider of infrastructure engineering software solutions, established in 1984, and is dedicated to delivering innovative software and services [4].

Company Overview - The company identifies itself as an infrastructure engineering software company, focusing on software solutions that support various infrastructure projects such as roads, bridges, tunnels, electric grids, and water networks [1]. - The company provides software for all engineering disciplines involved in infrastructure projects, including civil, structural, and geotechnical engineering [2]. Product Offering - The software covers every phase of the infrastructure life cycle, from design to construction, and through to operations and maintenance [2]. - The company serves a wide range of sectors within the infrastructure domain, ensuring comprehensive support for diverse engineering needs [2].

Summary of Bentley Systems FY Conference Call Company Overview - **Company**: Bentley Systems (NasdaqGS:BSY) - **Industry**: Infrastructure Engineering Software - **Founded**: 1984, went public in 2020 - **CEO**: Nicholas Cumins, in role for 1.5 years, first non-Bentley CEO [9][10] Core Business and Strategy - Bentley Systems focuses on software for infrastructure projects, covering all engineering disciplines and lifecycle phases from design to maintenance [9][10] - The strategy remains consistent with previous leadership, emphasizing AI integration and organizational changes for better product and technology alignment [11][12] Market Demand and Trends - There is unprecedented investment in global infrastructure to support economic growth, address climate change, and ensure energy security [13] - A significant shortage of engineers is creating a backlog in engineering firms, leading to increased demand for productivity-enhancing software [14][15] - In Europe, 50% of the water infrastructure workforce is expected to retire in the next decade, while demand for water services is expected to rise [15] Financial Performance and Outlook - Bentley Systems has over 40,000 accounts with low revenue concentration; approximately 60% of Annual Recurring Revenue (ARR) comes from public works utilities, which are countercyclical [18] - The company expects low double-digit ARR growth, with margin expansion of about 100 basis points annually and robust free cash flow generation [19][46] Growth in Small and Medium Business (SMB) - The SMB segment has been a significant growth driver, contributing approximately 300 basis points to ARR growth over the past five years [20][22] - Bentley has successfully onboarded over 600 new SMB accounts each quarter for 15 consecutive quarters [22] Asset Analytics and AI Integration - Bentley is investing in asset analytics to help owners and operators understand the physical conditions of infrastructure assets using AI and computer vision [25][26] - AI is being integrated into both traditional and next-generation applications to enhance design efficiency and productivity [27][28] Data Center Infrastructure - The company sees substantial opportunities in the data center buildout, likening data centers to mini cities requiring extensive infrastructure [35][36] - Bentley's construction modeling software is becoming the standard for data center design, driven by the demand for electric grid expansion [37] M&A Strategy - Bentley's acquisition strategy has shifted towards focusing on asset analytics startups, while still considering core engineering applications [41][44] - The company has conducted over 120 acquisitions historically, but is now more selective in targeting innovative technologies [41][44] Conclusion - The outlook for Bentley Systems remains positive, with strong demand in the infrastructure sector expected to continue into 2026, supporting the company's long-term financial goals [46]

Donovan Jones is an IPO research specialist with 15 years of experience identifying opportunities for high quality IPOs.He also leads the investing group IPO Edge, which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates. Learn moreAnaly ...

Core Insights - Bentley Systems, Incorporated (NASDAQ:BSY) demonstrated steady growth and shareholder returns, supported by solid Q3 2025 results and new capital-allocation commitments [2]. Financial Performance - In Q3 2025, Bentley Systems reported a revenue increase of 12% year-over-year, reaching $375.5 million, driven by a 13.5% growth in subscription revenues and a 10.5% increase in Annual Recurring Revenue (ARR) on a constant-currency basis [4]. - The company achieved an operating margin of 22.5% and generated free cash flow of $110.7 million during the same quarter [4]. Shareholder Returns - On November 21, 2025, Bentley Systems declared a quarterly dividend of $0.07 per share for Q4 2025, payable on December 11 [3]. - The company expanded its stock repurchase program, authorizing the repurchase of up to $500 million in Class B shares and convertible notes, replacing the previous authorization set to expire in mid-2026 [3]. Strategic Initiatives - Management emphasized the increasing role of AI in Bentley's long-term strategy, highlighting new Infrastructure AI capabilities introduced at the Year in Infrastructure Conference [5]. - The company remains optimistic about future growth, citing strong pipelines, diversified demand, and expanding AI-driven consumption models as key growth drivers [5]. Business Overview - Bentley Systems provides engineering software and digital twin solutions, aiding global infrastructure professionals in designing, building, and managing resilient assets across various sectors [6].

Group 1 - The presentation features Greg Bentley, the Executive Chair and Co-Founder of Bentley, who has held the position for a little over a year [1]

Summary of Bentley Systems Conference Call Company Overview - **Company**: Bentley Systems (NasdaqGS:BSY) - **Event**: 2025 Conference on November 18, 2025 Key Points Company Leadership and Ownership - Greg Bentley serves as Executive Chair and remains actively involved in capital allocation and investor relations [3][4] - Family ownership has decreased by approximately 1% per year since the company went public, but the Bentley family still holds a majority [4] Business Performance and Market Demand - Bentley Systems has shown consistent results since its IPO, with a strong demand environment for infrastructure engineering tools [7][9] - There is a significant shortage of engineers in the U.S., with one in nine positions unfilled, leading to increased backlogs for engineering firms [9] - The company is well-positioned to benefit from global infrastructure spending commitments, particularly in public works and utilities [21][22] Revenue Model and Growth Strategy - The majority of Bentley's Annual Recurring Revenue (ARR) comes from the E365 Pure Consumption Program, which relies on consumption-based billing [11][13] - The company aims for double-digit ARR growth, with negotiations for multi-year escalated floors and ceilings becoming standard [12][13] - Approximately two-thirds of enterprise accounts are in the process of transitioning to the E365 consumption model [15][16] Future Growth Opportunities - Bentley anticipates growth from asset analytics, which allows for immediate digital twin creation and optimization of maintenance costs [39][40] - The company is focused on acquisitions that enhance its asset analytics capabilities, with plans to consolidate in this space [41][42] Infrastructure Spending and Regulatory Environment - The successor to the Infrastructure Investment and Jobs Act (IIJA) is expected to focus primarily on surface transportation funding, with less emphasis on broadband and grid funding [27][28] - There is a strong belief that private investment will fill gaps in public infrastructure funding, particularly in public-private partnerships [28] AI and Digital Twin Integration - Bentley has been integrating AI into its products for years, enhancing capabilities such as reality modeling and predictive maintenance [29][30] - The company emphasizes that user data remains proprietary, allowing clients to train AI models on their own data for competitive advantage [33][34] Financial Outlook and Capital Allocation - Bentley aims for 100 basis points of margin expansion annually, driven by efficiency improvements and scale leverage [52] - The company has compounded free cash flow per share at over 14% since going public and plans to continue this trend [53] Conclusion - Bentley Systems is positioned for sustained growth through its focus on infrastructure engineering, digital transformation, and strategic acquisitions, while maintaining a commitment to shareholder value and operational efficiency [44][50]

Revenue Growth - Total revenues for the three months ended September 30, 2025, were $375,549, up 12.0% compared to the same period in 2024, and $1,110,197 for the nine months ended September 30, 2025, up 10.7%[134] - Subscription revenues for the three months ended September 30, 2025, were $344,293, up 13.5%, and $1,020,063 for the nine months ended September 30, 2025, up 12.4%[134] - Annual Recurring Revenue (ARR) was $1,405,236 as of September 30, 2025, representing a constant currency ARR growth rate of 10.5%[134] - The last twelve-month recurring revenues increased by $155,106 million, primarily due to growth in ARR and new account additions[176] - Total revenues for Q3 2025 were $375,549, compared to $335,173 in Q3 2024, reflecting an increase of 12.0%[190] - Subscription revenues for Q3 2025 reached $344,293, a rise from $303,239 in Q3 2024, marking a growth of 13.6%[190] - The company reported a total revenue of $1,110,197 for the nine months ended September 30, 2025, compared to $1,003,273 for the same period in 2024, which is a 10.7% increase[190] Regional Performance - Revenues from the Americas increased by 11.8% to $196,345 for the three months ended September 30, 2025, and by 9.9% to $589,379 for the nine months ended September 30, 2025[145] - EMEA revenues increased by 13.2% to $107,887 for the three months ended September 30, 2025, and by 12.0% to $320,306 for the nine months ended September 30, 2025[145] - APAC revenues increased by 11.0% to $71,317 for the three months ended September 30, 2025, and by 10.6% to $200,512 for the nine months ended September 30, 2025[145] - The Americas region generated $196,345 in revenue for Q3 2025, up from $175,609 in Q3 2024, representing an increase of 11.5%[190] - EMEA revenues for Q3 2025 were $107,887, compared to $95,343 in Q3 2024, indicating a growth of 13.5%[190] - APAC revenues for Q3 2025 reached $71,317, an increase from $64,221 in Q3 2024, reflecting a growth of 11.5%[190] Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $84,497, compared to $68,630 for the same period in 2024, and $284,111 for the nine months ended September 30, 2025, compared to $240,738 in 2024[134] - Cost of revenues for the three months ended September 30, 2025, was $72,195, an increase of 11.4% compared to the same period in 2024, and $206,630 for the nine months ended September 30, 2025, up 8.8%[153] - Research and development expenses for the three months ended September 30, 2025, increased by 12.4% to $78,751 million compared to $70,068 million in 2024[156] - Selling and marketing expenses for the same period rose by 11.0% to $72,107 million, driven by headcount-related costs and promotional expenses[158] - Total operating expenses for the nine months ended September 30, 2025, were $619,456 million, an increase of 8.2% from $572,680 million in 2024[156] - Adjusted Operating Income Less Stock-Based Compensation (AOI less SBC) for Q3 2025 was $104,026, compared to $89,524 in Q3 2024, representing a 16.3% increase[188] - Adjusted Operating Income (AOI) for the nine months ended September 30, 2025, was $389,966, up from $354,250 in the same period of 2024, indicating a growth of 10.1%[188] Cash Flow and Financial Position - Cash flows from operations were $396,876 for the nine months ended September 30, 2025, compared to $353,660 for the same period in 2024[134] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $396,876, an increase of 12.2% from $353,660 in 2024[195] - Cash and cash equivalents as of September 30, 2025, totaled $165,411, significantly higher than $64,009 at the end of 2024[193] - Long-term debt decreased to $1,247,378 as of September 30, 2025, from $1,388,088 at the end of 2024[199] - Net cash used in investing activities was $13,774 for the nine months ended September 30, 2025, a significant decrease from $135,680 in 2024[195] - The company had $1,299,850 available under the Credit Facility as of September 30, 2025, and was in compliance with all covenants[199] Shareholder Returns - The company repurchased 1,457,454 shares for $65,029 during the nine months ended September 30, 2025, compared to 912,737 shares for $45,769 in 2024[202] - The quarterly dividend per share increased to $0.07 in 2025 from $0.06 in 2024, resulting in higher dividend payments of $9,771[198] - Quarterly dividends paid were $0.07 per share for the nine months ended September 30, 2025, compared to $0.06 per share for the same period in 2024[205] - Future dividend payments will depend on the discretion of the Board of Directors and various factors including operational results and financial condition[205] Tax and Interest - Interest expense, net decreased by 41.6% to $(2,727) million for the three months ended September 30, 2025, primarily due to lower average debt outstanding[162] - The effective tax rate for the three months ended September 30, 2025, was 31.4%, up from 28.1% in 2024, mainly due to increased discrete tax expenses[164] - The company anticipates favorable impacts on cash paid for income taxes in 2025 and 2026 due to the One Big Beautiful Bill Act, particularly for domestic R&D expenses[166] Customer Metrics - The account retention rate remained stable at 99% for both September 30, 2025, and 2024, indicating strong customer loyalty[168] - Recurring revenues dollar-based net retention rate was 109% for both periods, demonstrating effective revenue growth from existing accounts[168] Financial Reporting Practices - The company uses non-GAAP financial measures to evaluate operational performance and assist in internal budgeting and forecasting[186] - There have been no material changes in market risk exposure as described in the 2024 Annual Report on Form 10-K[206]