Group 1 - Bentley Systems reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.31 per share a year ago, resulting in an earnings surprise of +10.34% [1] - The company achieved revenues of $364.11 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.28% and increasing from $330.34 million year-over-year [2] - Bentley Systems shares have increased approximately 22.2% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $367.04 million, and for the current fiscal year, it is $1.19 on revenues of $1.48 billion [7] - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this industry [8]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $364 million, up 10% year over year on a reported basis and 9% on a constant currency basis [26] - Subscription revenues now represent 92% of total revenues, up two percentage points from the same period last year, with subscription revenues growing 12% year over year [27] - The company ended Q2 with an Annual Recurring Revenue (ARR) of $1.379 billion, with a year-over-year growth rate of 11.5% on a constant currency basis [29] - Free cash flow was $57 million for the quarter and $273 million year to date, with an increased full-year free cash flow outlook raised to a range of $430 to $470 million [33] Business Line Data and Key Metrics Changes - The company added 300 basis points of ARR growth from new logos, primarily within the SMB segment, and added more than 600 new SMB logos for the fourteenth consecutive quarter [18] - Subscription revenues grew 12% year over year, while perpetual license revenues decreased to $10 million, down $1 million year over year [27][28] - Professional services revenues declined 7% for the quarter, now representing 6% of total revenues [28] Market Data and Key Metrics Changes - The Americas region showed solid growth, particularly in Latin America, while the US accounts remained confident despite uncertainties related to tariffs and policy shifts [20] - EMEA delivered solid growth, with the Middle East leading the region, and investment remains strong across transportation, energy, and water infrastructure [21] - In Asia Pacific, India showed positive sentiment across strategic national programs, while Australia experienced a slowdown in transportation spending [23] Company Strategy and Development Direction - The company is focused on going digital as a long-term growth driver, emphasizing the need for enhanced software utilization and AI in infrastructure engineering [4] - The acquisition of Cesium is aimed at expanding capabilities in 3D geospatial technology and integrating it with existing platforms [24][62] - The company is prioritizing AI and asset analytics in its R&D efforts, indicating a strategic shift towards leveraging AI to enhance productivity in engineering tasks [61][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year outlook based on low double-digit ARR growth and continued margin expansion [16] - The demand for resilient infrastructure continues to outpace available engineering resources, positioning the company's software as crucial for productivity [16] - There is optimism regarding legislative changes that could enhance infrastructure investment, particularly in the US [20] Other Important Information - The company is well-positioned to benefit from upcoming infrastructure funding initiatives in the UK and Europe, with significant long-term funding earmarked for infrastructure projects [22] - The company’s net debt leverage was reduced to 2.4 times adjusted EBITDA, down from 2.9 times in 2024, indicating improved financial health [34] Q&A Session Summary Question: Did you notice an improvement sequentially now that we're past some of the initial tariff uncertainty? - Management indicated a consistent environment with positive outlooks from accounts, highlighting a demand problem rather than a capacity issue [40] Question: Do you have the right product set to reach engineers spending below a thousand? - The company confirmed that its traditional product, MicroStation, serves as an entry point for engineers and remains a growth driver in the SMB segment [43] Question: Can you elaborate on the data center opportunity? - Management noted that data centers represent a significant infrastructure opportunity, with software designed for both the data center and its surrounding infrastructure [49] Question: What drove the slight downtick in net retention rate (NRR)? - The NRR is fluctuating between 109% and 110%, with historical pressures from China affecting the overall figure [82] Question: How is the company leveraging AI in its products? - AI is seen as a key area for enhancing productivity in engineering tasks, with ongoing efforts to integrate AI capabilities into the company's software offerings [92]

© 2025 Bentley Systems, Incorporated. All rights reserved. August 6, 2025 1 Bentley Systems Second Quarter 2025 Results Agenda © 2025 Bentley Systems, Incorporated. All rights reserved. 3 Perspectives from the Executive Chair, Greg Bentley 01 © 2025 Bentley Systems, Incorporated. All rights reserved. 4 Total addressable market ("TAM") Perspectives from the Executive Chair 01 © 2025 Bentley Systems, Incorporated. All rights reserved. 2 Perspectives from the CEO 02 Perspectives from the CFO 03 Q&A 04 Disclaim ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Bentley Systems achieved solid Q2 and H1 2025 revenue growth, driven by subscriptions, maintaining strong profitability and ARR expansion [Second Quarter 2025 Results](index=1&type=section&id=Second%20Quarter%202025%20Results) Q2 2025 saw total revenues reach $364.1 million with 10.2% growth, driven by subscription revenues, alongside stable cash flow and increased Adjusted EPS Q2 2025 Key Financial Metrics (Year-over-Year, in millions) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $364.1M | $330.3M (from P&L) | 10.2% | 9.2% | | **Subscriptions Revenues** | $333.5M | $297.4M (from P&L) | 12.1% | 11.2% | | **Operating Income Margin** | 23.2% | 24.3% | (1.1 pps) | N/A | | **Net Income per Diluted Share** | $0.22 | $0.22 | 0.0% | N/A | | **Adjusted EPS** | $0.32 | $0.31 | 3.2% | N/A | | **Cash Flows from Operations** | $61.1M | $62.6M | (2.4%) | N/A | - Annualized Recurring Revenues (ARR) reached **$1,379.2 million**, representing a constant currency growth rate of **11.5%** compared to June 30, 2024[2](index=2&type=chunk) - The last twelve-month recurring revenues dollar-based net retention rate was **109%**, an improvement from **108%** in the same period last year[2](index=2&type=chunk) [Six Months Ended June 30, 2025 Results](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Results) First half 2025 revenues grew 10.0% to $734.6 million, driven by subscriptions, with improved operating margin and increased net income per diluted share First Half 2025 Key Financial Metrics (Year-over-Year, in millions) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $734.6M | $668.1M | 10.0% | 10.1% | | **Subscriptions Revenues** | $675.8M | $604.5M | 11.8% | 11.9% | | **Operating Income Margin** | 27.2% | 25.8% | 1.4 pps | N/A | | **Net Income per Diluted Share** | $0.50 | $0.44 | 13.6% | N/A | | **Adjusted EPS** | $0.67 | $0.62 | 8.1% | N/A | | **Cash Flows from Operations** | $280.5M | $267.6M | 4.8% | N/A | [Management Commentary](index=2&type=section&id=Management%20Commentary) Management expressed confidence in the company's performance and outlook, highlighting consistent results, business resilience, and strong financial positioning - **Executive Chair Greg Bentley:** Emphasized that results are on track for the **2025 outlook**, driven by long-term 'going digital' trends and the need for productivity gains in infrastructure engineering[4](index=4&type=chunk) - **CEO Nicholas Cumins:** Noted a strong quarter despite global uncertainties, attributing performance to a resilient business model and secular infrastructure investment[4](index=4&type=chunk) - **CFO Werner Andre:** Stated that Q2 performance met expectations with **11.5% constant-currency ARR growth**. He highlighted the company's **strong balance sheet and cash flow**, providing capacity for share repurchases, dividends, potential acquisitions, and refinancing debt[4](index=4&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The unaudited consolidated financial statements detail the company's financial position, reflecting increased assets, revenue growth, and strong operating cash flow [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $3.42 billion, while total liabilities decreased, leading to an increase in total equity Key Balance Sheet Items (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $439,522 | $442,073 | | **Total Assets** | $3,423,284 | $3,399,807 | | **Total Current Liabilities** | $858,364 | $814,334 | | **Long-term Debt** | $1,245,843 | $1,388,088 | | **Total Liabilities** | $2,261,114 | $2,358,687 | | **Total Equity** | $1,162,170 | $1,041,120 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, total revenues grew 10.0% to $734.6 million, resulting in increased gross profit and net income Key Income Statement Data (in thousands, YoY) | Account | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $364,106 | $330,337 | $734,648 | $668,100 | | **Gross Profit** | $295,330 | $267,144 | $600,213 | $543,077 | | **Income from Operations** | $84,430 | $80,177 | $199,614 | $172,108 | | **Net Income Attributable to Bentley Systems** | $70,482 | $72,046 | $161,850 | $142,356 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to $280.5 million for the first six months of 2025, leading to a net increase in cash and cash equivalents Summary of Cash Flows (in thousands, for Six Months Ended June 30) | Category | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $280,500 | $267,555 | | **Net cash used in investing activities** | ($7,135) | ($10,946) | | **Net cash used in financing activities** | ($257,509) | ($270,999) | | **Increase (decrease) in cash and cash equivalents** | $25,637 | ($17,134) | | **Cash and cash equivalents, end of period** | $89,646 | $51,278 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, clarifying calculations for Adjusted Operating Income, Adjusted Net Income, Free Cash Flow, and Adjusted EBITDA [Reconciliation to Adjusted Operating Income and Adjusted Net Income](index=9&type=section&id=Reconciliation%20to%20Adjusted%20Operating%20Income%20and%20Adjusted%20Net%20Income) Q2 2025 GAAP operating income of $84.4 million was adjusted to $124.5 million, and net income of $70.5 million to $105.5 million, primarily by adding back amortization and stock-based compensation Q2 2025 Reconciliation Summary (in thousands) | Metric | GAAP Value (in thousands) | Key Adjustments (in thousands) | Non-GAAP Value (in thousands) | | :--- | :--- | :--- | :--- | | **Operating Income** | $84,430 | +$11,405 (Amortization) <br> +$19,319 (Stock Comp.) | $124,542 (Adj. Op. Income) | | **Net Income** | $70,482 | +$11,405 (Amortization) <br> +$19,319 (Stock Comp.) | $105,478 (Adj. Net Income) | [Reconciliation to Free Cash Flow and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow%20and%20Adjusted%20EBITDA) Q2 2025 Free Cash Flow was $57.0 million, derived from operating cash flow, and Adjusted EBITDA was $129.3 million after various adjustments Q2 2025 Cash Flow Reconciliations (in thousands) | Reconciliation | Amount (in thousands) | | :--- | :--- | | **Cash flows from operations** | $61,085 | | Less: Purchases of property and equipment | ($4,091) | | **Free cash flow** | **$56,994** | | **Adjusted EBITDA** | **$129,318** | [Reconciliation to Constant Currency Revenues](index=10&type=section&id=Reconciliation%20to%20Constant%20Currency%20Revenues) A constant currency reconciliation for Q2 2025 shows a negative $3.6 million FX impact on total revenues, with constant currency growth of 9.2% for total revenue and 11.2% for subscriptions Q2 2025 Constant Currency Impact (in thousands) | Revenue Type | As Reported (in thousands) | Impact of FX (in thousands) | Constant Currency (in thousands) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $364,106 | ($3,603) | $360,503 | | **Subscriptions Revenues** | $333,452 | ($3,191) | $330,261 | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides investor logistical details and includes legal disclaimers regarding non-GAAP measures and forward-looking statements [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Bentley Systems will host a live Zoom webinar on August 6, 2025, at 8:15 a.m. Eastern time to discuss Q2 2025 results - A live Zoom webinar to discuss Q2 2025 results is scheduled for **August 6, 2025**, at **8:15 a.m. Eastern time**[5](index=5&type=chunk) [Forward-Looking Statements and Non-GAAP Measures](index=3&type=section&id=Forward-Looking%20Statements%20and%20Non-GAAP%20Measures) This report contains forward-looking statements subject to risks and uncertainties, and utilizes non-GAAP financial measures with reconciliations available in the Form 8-K - The report contains **forward-looking statements** concerning future results and operations, which are subject to **numerous risks and uncertainties** detailed in the company's SEC filings[9](index=9&type=chunk)[10](index=10&type=chunk) - The company uses **non-GAAP financial measures**, and **reconciliations** to the most comparable GAAP measures are provided in the **Form 8-K** furnished to the SEC[8](index=8&type=chunk)

Core Insights - Wall Street analysts expect Bentley Systems, Incorporated (BSY) to report quarterly earnings of $0.29 per share, reflecting a year-over-year decline of 6.5% [1] - Revenue projections stand at $363.09 million, indicating a 9.9% increase from the same quarter last year [1] Earnings Projections - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [1][2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [2] Revenue Estimates - Analysts forecast 'Revenues- Subscriptions and licenses' to reach $344.96 million, representing an 11.9% year-over-year increase [4] - 'Revenues- Services' are expected to be $19.30 million, showing a decline of 12.4% year-over-year [4] - The average prediction for 'Revenues- Subscriptions' is $334.07 million, indicating a 12.3% increase year-over-year [4] Additional Revenue Metrics - 'Revenues- Perpetual licenses' are projected at $11.64 million, reflecting a 7.2% year-over-year increase [5] - The consensus estimate for total revenue year-over-year growth is 9.9%, down from 11.3% in the previous year [5] - Estimated 'Annualized Recurring Revenues (ARR)' is projected at $1.35 billion, up from $1.22 billion in the same quarter last year [5] Subscription Growth - 'Revenue - Subscriptions - YoY growth' is expected to be 12.3%, compared to 14.7% in the same quarter last year [6] - Over the past month, Bentley Systems shares have increased by 4.3%, outperforming the Zacks S&P 500 composite's 1% change [6] - The company holds a Zacks Rank 3 (Hold), suggesting performance in line with the overall market [6]

Core Insights - Bentley Systems, Incorporated (BSY) is set to report second-quarter 2025 earnings on August 6, with a consensus estimate of 29 cents per share, indicating a year-over-year decline of 6.5% [1][9] - Revenue expectations for the second quarter are pegged at $363.1 million, reflecting a 9.9% increase from the previous year's $330.3 million [2][9] Factors Influencing Q2 Results - The company's performance is likely to benefit from favorable infrastructure spending trends in the U.S., particularly due to the Infrastructure Investment and Jobs Act [3] - New solutions like Seequent Evo and the adoption of AI-powered asset analytics, especially through a partnership with Google, are expected to drive demand for Bentley Systems' offerings [4] - The growing adoption of the E365 subscription model and Virtuosity platforms is anticipated to contribute to new customer acquisitions and upselling during the quarter [5] Cost and Market Challenges - The second quarter typically incurs costs from annual raises and promotional events, which may compress margins sequentially [6] - Delayed mining investments and macroeconomic sensitivity in commercial infrastructure could offset some benefits from positive trends [6] - Economic challenges in China are expected to negatively impact overall growth for the quarter [6] Earnings Prediction Insights - Current analysis does not predict a definitive earnings beat for Bentley Systems, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [7]

Core Viewpoint - Bentley Systems, Incorporated (BSY) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.29 per share, reflecting a year-over-year decrease of 6.5%, while revenues are projected to be $363.09 million, representing a 9.9% increase from the previous year [3]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Bentley Systems is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.78%, suggesting a bearish sentiment among analysts regarding the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Bentley Systems exceeded the expected earnings of $0.30 per share by delivering $0.35, resulting in a positive surprise of 16.67% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Market Context - The overall market sentiment indicates that an earnings beat or miss may not solely dictate stock price movements, as other factors can also influence investor reactions [15]. - Despite the current outlook, the company does not appear to be a compelling candidate for an earnings beat, suggesting that investors should consider additional factors before making investment decisions [17].

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news, publications, and personal analysis intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

Group 1 - Bentley Systems, Incorporated (BSY) has shown a year-to-date return of 2.2%, outperforming the average return of -1.7% for the Computer and Technology sector [4] - The Zacks Consensus Estimate for BSY's full-year earnings has increased by 4.4% over the past 90 days, indicating improving analyst sentiment [4] - Bentley Systems is currently ranked 2 (Buy) in the Zacks Rank, which is a stock-picking model focusing on earnings estimates and revisions [3] Group 2 - Bentley Systems belongs to the Internet - Software industry, which consists of 167 companies and is currently ranked 51 in the Zacks Industry Rank [6] - The Internet - Software industry has seen an average gain of 6.9% year-to-date, indicating that BSY is slightly underperforming its industry [6] - In contrast, Broadcom Inc. (AVGO), another stock in the Computer and Technology sector, has a year-to-date return of 4.4% and is also ranked 2 (Buy) [5]

Core Viewpoint - The article discusses the investment potential of Bentley Systems (NASDAQ: BSY), highlighting a buy rating based on its valuation becoming attractive and the expectation of growth acceleration in the future [1]. Group 1: Investment Philosophy - The investment approach is fundamentally based, focusing on long-term durability and affordability rather than merely low multiples [1]. - The article emphasizes the importance of a robust balance sheet and steady long-term growth without cyclicality as key factors in selecting investment opportunities [1]. - It acknowledges the risks associated with investing in successful companies, particularly the potential of overpaying for stocks, underscoring the significance of valuation [1]. Group 2: Market Outlook - There is a belief that in certain situations, the potential for growth can outweigh immediate price concerns, suggesting a favorable outlook for companies with significant development runways [1].