Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Bentley Systems Inc (BSY): Can Mixed Print and China Headwinds Derail Its Growth Momentum Despite ARR Gains?
Bentley Systems delivered another quarter of resilient performance, underpinned by 12% YoY ARR growth (12.5% excluding China) and robust subscription-driven revenue, now comprising 91% of its mix. While adjusted EPS met expectations at $0.24, revenue missed by $5.94M due to sequential pressures and Cohesive’s IBM Maximo-related softness. Encouragingly, management anticipates ARR growth surpassing the midpoint of its 10.5%-13% range for 2024, supported by E365 renewals and SMB-driven momentum through Virtuosity's digital-first model, which added 600+ new logos for the 11th consecutive quarter. Geographic diversification, driven by U.S. IIJA infrastructure funding and APAC growth, mitigates China’s ARR contraction (2.5% exposure), while Cesium’s acquisition bolsters 3D visualization capabilities for asset analytics and digital twins. Despite near-term pressures, Bentley’s scalable model achieves margin expansion alongside disciplined reinvestment in AI, data ecosystems, and high-growth verticals. ARR predictability, coupled with strategic partnerships and initiatives like Cesium, positions Bentley for durable long-term growth. However, mixed top-line results, geopolitical risks, and Cohesive’s revenue softness warrant close monitoring. Can Bentley’s bold investments in AI and asset analytics, alongside E365-driven ARR predictability, outpace near-term headwinds to maintain its compounding growth trajectory?
