Bentley Systems (BSY) The 44th Annual William Blair Growth Stock Conference summary

Company evolution and business model

• Celebrating 40 years, the company remains family-led and focused on infrastructure engineering software.

• 91% of revenue comes from a subscription model, with strong direct relationships with major infrastructure organizations.

• Public works and utilities account for 60% of ARR, resources 25%, and commercial/facilities 6%.

• 60% of revenue comes from accounts spending $250,000+ annually; no single account exceeds 2% of revenue.

• North America is now a minority of revenue, reflecting global scale.

Financial performance and efficiency

• Operating margins after stock-based compensation are about 26%.

• 75% of subscription revenue is recognized ratably; no multi-year billings.

• Adjusted EBITDA to cash conversion is about 80%.

• Operating margin dollars have compounded at 16% per year since 2018.

• Internal commitment to 100 basis points efficiency improvement annually.

Industry trends and market opportunity

• Global priorities like energy transition and climate resilience drive infrastructure demand.

• Digital transformation is essential due to resource constraints and has accelerated growth.

• Infrastructure investment is now seen as essential and bipartisan, with multi-year global programs.

• Private funding and digital twins are expected to further accelerate digital adoption.

• Significant headroom exists for increased software spend per engineer in infrastructure.