Bentley Systems (BSY) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with total revenues of $371M, up 10% year-over-year (11% in constant currency), and ARR reaching $1.32B, up 12%–13% year-over-year.

• Business model resilience supported by diversification across infrastructure sectors, lifecycle phases, commercial models, account scale, and geography.

• Recurring revenues accounted for 92% of total, with E365 enterprise subscriptions and digital twin initiatives as key growth drivers.

• Notable product and partnership developments included the launch of Seequent Evo and an expanded Google partnership for asset analytics.

• Management highlighted business resilience and confidence in outlook amid global uncertainties and continued infrastructure demand.

Financial highlights

• Q1 2025 total revenues were $371M, up 10% year-over-year (11% in constant currency); subscription revenues grew 11%–11.5% year-over-year.

• ARR at quarter-end was $1.32B, up 12%–13% year-over-year (12.5% excluding China).

• Adjusted operating income less SBC was $126M, up 12% year-over-year, with a margin of 34.1%.

• Free cash flow was $216M, up 7% year-over-year; cash flows from operations totaled $219.4M.

• Net income attributable to shareholders was $91.4M, up from $70.3M year-over-year; diluted EPS was $0.28.

Outlook and guidance

• Full-year 2025 revenue guidance: $1.461B–$1.490B (10.5%–12.5% growth in constant currency); ARR growth expected at 10.5%–12.5%.

• AOI less SBC margin targeted at ~28.5%, with free cash flow of $415M–$455M.

• Management expects continued ARR and recurring revenue growth, supported by high retention rates (99%) and a 110% recurring revenues dollar-based net retention rate.

• Seasonality expected, with higher sequential ARR growth in Q2 and Q4; Q3 to be seasonal low.

• Foreign exchange expected to positively impact Q2–Q4 GAAP revenues by ~$20M if current rates persist.