Bentley Systems (BSY) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Business resilience and market dynamics

• 60% of ARR comes from public works and utilities, sectors less affected by macroeconomic cycles and often countercyclical due to infrastructure stimulus spending.

• 25% of ARR is from resources, mainly mining, which has long-term growth drivers but is sensitive to interest rates and capital markets.

• 15% of ARR is from commercial and industrial infrastructure, which is more exposed to economic cycles.

• 92% of revenue is recurring, with a diversified customer base and no significant revenue concentration.

• Geographic and sector diversification, along with a direct sales model, provide strong business visibility and stability.

Impact of U.S. infrastructure funding and policy

• U.S. accounts for 42% of business, with strong positions in transportation infrastructure.

• State and federal spending on transportation has increased, driven by the Infrastructure Investment and Jobs Act (IIJA), with states exceeding federal matching requirements.

• Less than 50% of IIJA funds have been announced; the act sunsets in September next year, but funding for ongoing projects is secured.

• Discussions are underway to maintain IIJA funding levels in future reauthorization bills, potentially sustaining elevated infrastructure investment.

• The new administration is shifting focus toward ports, airports, and energy, reducing emphasis on high-speed rail and favoring state-level block grants over federal discretionary grants.

Growth opportunities in mining and grid infrastructure

• Expansion of domestic mining, supported by regulatory changes, is expected to benefit the Seequent business, which leads in 3D subsurface modeling.

• Seequent has outpaced company growth since its acquisition, with long-term demand driven by the need for critical minerals and self-sufficiency.

• Power Line Systems (PLS) business is set to benefit from increased investment in grid reliability and transmission capacity, with permitting reforms likely to accelerate projects.

• Global grid expansion is a priority, with PLS software essential for transmission engineering worldwide.