Latest news with #E365
Yahoo
09-07-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Bentley's Q1 Earnings Call
Bentley's first quarter results were shaped by expanding recurring revenues, ongoing account diversification, and robust demand from infrastructure-focused sectors. Management credited the company's improved business mix, particularly its reduced exposure to cyclical commercial and industrial segments, and highlighted the strength of its E365 enterprise subscription program. CEO Nicholas Cumins noted that the addition of over 600 new small and mid-size business customers, as well as high retention rates, contributed to steady annual recurring revenue growth. Public Works and Utilities remained strong, with infrastructure funding and engineering workforce shortages supporting software adoption. Is now the time to buy BSY? Find out in our full research report (it's free). Revenue: $370.5 million vs analyst estimates of $365.4 million (9.7% year-on-year growth, 1.4% beat) Adjusted EPS: $0.35 vs analyst estimates of $0.30 (16.6% beat) Adjusted Operating Income: $143.5 million vs analyst estimates of $130.7 million (38.7% margin, 9.8% beat) Operating Margin: 31.1%, up from 27.2% in the same quarter last year Net Revenue Retention Rate: 110%, in line with the previous quarter Annual Recurring Revenue: $1.32 billion at quarter end, up 11.2% year on year Billings: $368.8 million at quarter end, up 13.4% year on year Market Capitalization: $16.94 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Joe Vruwink (Baird) asked about the mix of state versus federal funding in U.S. infrastructure and the impact of shifting federal priorities. CEO Greg Bentley and CEO Nicholas Cumins explained that while the headline funding amount is steady, a greater focus on roads and permitting reform could benefit Bentley. Matt Hedberg (RBC) inquired about macroeconomic pressures in sensitive segments like commercial facilities and industrial. Cumins noted continued softness in commercial facilities, but said industrial sentiment is improving due to U.S. manufacturing initiatives. Jason Celino (KeyBanc) sought clarity on ARR growth seasonality and linearity through the year. CFO Werner Andre detailed that sequential growth is expected to be higher in Q2 and Q4, with Q3 as a seasonal low due to timing of deals. Siti Panigrahi (Mizuho) asked about the progress integrating Cesium and the Google partnership into asset analytics. Cumins reported successful adoption and expects expanded reach and win rates, noting ongoing development of new use cases. Blair Abernethy (Rosenblatt Securities) questioned how Bentley is using AI to address the engineering talent shortage. Cumins described automating drawing production and leveraging customer data—with consent—to train AI agents, while also using AI internally to improve developer productivity. In the coming quarters, the StockStory team will be watching (1) the pace of adoption for AI-powered automation in Bentley's engineering applications, (2) the monetization and traction of asset analytics platforms, especially those integrating Google's data, and (3) continued growth in public sector infrastructure funding across key geographies. Expansion in asset operations and maintenance will also be a critical indicator for future recurring revenue growth. Bentley currently trades at $53.86, up from $43.75 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
11-06-2025
- Business
- Yahoo
Bentley Systems (BSY) Q1 2025 Earnings: Subscription Growth, Analytics Expansion, Infrastructure Tailwinds
Infrastructure design software provider Bentley Systems (NASDAQ:BSY) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 9.7% year on year to $370.5 million. Its non-GAAP profit of $0.35 per share was 16.6% above analysts' consensus estimates. Is now the time to buy BSY? Find out in our full research report (it's free). Revenue: $370.5 million vs analyst estimates of $365.4 million (9.7% year-on-year growth, 1.4% beat) Adjusted EPS: $0.35 vs analyst estimates of $0.30 (16.6% beat) Adjusted Operating Income: $143.5 million vs analyst estimates of $130.7 million (38.7% margin, 9.8% beat) Operating Margin: 31.1%, up from 27.2% in the same quarter last year Net Revenue Retention Rate: 110%, in line with the previous quarter Annual Recurring Revenue: $1.32 billion at quarter end, up 11.2% year on year Market Capitalization: $15.13 billion Bentley Systems' first quarter results reflected momentum in expanding its recurring revenue base and demand for its infrastructure design software. Management attributed the quarter's performance to continued strength in government-funded infrastructure sectors and effective diversification away from more cyclical segments like commercial facilities. CEO Nicholas Cumins highlighted how Bentley's E365 enterprise subscription program and small- and medium-sized business (SMB) digital channels drove net new accounts and high retention rates, noting, 'We added more than 600 new logos through our line store for the 13th straight quarter.' Regional growth remained solid, with public utilities and transportation infrastructure fueling activity in the Americas and India standing out in Asia-Pacific. Meanwhile, recurring revenue now makes up 92% of total revenues, enhancing the company's business resilience. Looking ahead, management's guidance is shaped by ongoing public infrastructure investment, the growing role of artificial intelligence (AI) in product development, and the expansion of asset analytics offerings. CEO Nicholas Cumins emphasized the strong demand backdrop, citing a 'critical need for better and more resilient infrastructure' and a persistent shortage of engineers, which supports demand for productivity-enhancing software. The company is focused on capturing opportunities from permitting reforms, especially in the U.S., and leveraging its partnerships with Google and recent acquisitions to broaden its reach in asset operations and analytics. Management remains mindful of macroeconomic uncertainties but believes its diversified business model and backlog position Bentley to deliver consistent results through 2025. Management attributed first quarter growth to strong demand in government infrastructure, product innovation in asset analytics, and a continued shift to high-visibility subscription revenues. Subscription model expansion: Bentley's E365 enterprise subscription program continued to drive recurring revenue, with nearly all new large accounts adopting contracts with multi-year floors and ceilings on usage. This structure increases visibility and predictability for both Bentley and its customers. Diversification away from cyclical segments: The company further reduced exposure to commercial facilities and industrial sectors, which are more sensitive to economic cycles, now representing less than one-sixth of annual recurring revenue (ARR). Growth was instead concentrated in public utilities, transportation, and resources. Growth in asset analytics: Management spotlighted progress in asset analytics, particularly through the Blyncsy road network solution, which now integrates Google's Street View imagery and Vertex AI. Recent wins with state Departments of Transportation (DOTs) and expanded use cases are expected to increase win rates and geographic reach. Global and regional trends: Solid results in the Americas and EMEA (Europe, Middle East, and Africa) were supported by continued public investment. India emerged as the main growth driver in Asia-Pacific, benefiting from both local infrastructure spending and global engineering outsourcing. AI and automation initiatives: Product updates now incorporate AI to automate routine engineering tasks, such as creating 2D drawings from 3D models, aiming to address chronic labor shortages in the sector. Internally, Bentley is using AI to boost developer productivity, particularly in repetitive coding and documentation tasks. Management expects ongoing public infrastructure funding, product enhancements, and AI integration to drive growth, while acknowledging macroeconomic uncertainties and seasonal renewal patterns. Infrastructure funding tailwinds: Public spending in the U.S. and Europe, including multi-year government programs and permitting reforms, is expected to sustain demand for Bentley's solutions. Management highlighted the continued rollout of U.S. infrastructure bills and major European investment plans as positive indicators for both new and existing projects. Expansion of asset analytics and AI: The integration of Google technologies into Bentley's asset analytics offerings is anticipated to improve product capabilities and win rates, especially in road and network management. Management sees AI-driven automation as a key lever to address engineering talent shortages and enhance the productivity of both customers and internal teams. Seasonal and macroeconomic factors: Seasonality remains important, with contract renewals and deal timing leading to stronger results expected in later quarters. Management also noted potential headwinds from changes in global economic conditions but believes the company's diversified customer base and recurring revenue model provide resilience. In upcoming quarters, the StockStory team will monitor (1) further adoption of Bentley's AI-enabled asset analytics and road network products, (2) the impact of permitting reforms and government funding on infrastructure project pipelines in the U.S. and Europe, and (3) continued growth in SMB and enterprise subscription renewals. Additionally, execution on new product integrations with partners like Google and expansion into asset operations will be critical for sustaining momentum. Bentley currently trades at a forward price-to-sales ratio of 10.5×. In the wake of earnings, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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