Bentley Systems (BSY) Nasdaq 54th Investor Conference summary

Company overview and market positioning

• Founded in 1984, the company is majority-owned and board-controlled by its founders, maintaining a long-term orientation in decision-making.

• Recognized as a leader in infrastructure engineering software, especially for public works, utilities, and horizontal infrastructure sectors.

• Holds strong positions in resources (mining, environmental modeling) and participates in industrial and commercial infrastructure, with 42 years of market penetration.

• 93% of revenue comes from direct sales, with a focus on large enterprise accounts and a transparent, consumption-based revenue model.

Financial performance and capital allocation

• Operating margins have grown by 100 basis points annually, reaching about 30% adjusted operating income and 35% free cash flow margin.

• Free cash flows have grown in the mid-teens annually, with ARR growth in the low double digits; company valuation has doubled every five years.

• Recent capital allocation has prioritized programmatic acquisitions, stock repurchases to offset dilution, and modest dividends.

• Leverage reduced from 5x to 2x after major acquisitions in 2021 and 2022, now at equilibrium for future acquisitions.

Legislative and market drivers

• U.S. infrastructure bills, such as the IIJA and BUILD 250, provide multi-year funding stability for surface transportation, benefiting the company.

• Funding for broadband, grid, and water remains robust, with permitting reform seen as a key future catalyst, especially for grid investments.