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]