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).
Bentley (BSY) Q1 CY2025 Highlights:
- 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.
Our Top 5 Analyst Questions Bentley’s Q1 Earnings Call
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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.
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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.
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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.
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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.
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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.
Catalysts in Upcoming Quarters
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. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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