Bentley Systems Q4 Earnings Call Highlights

Bentley Systems (NASDAQ:BSY) executives utilized the company’s fourth-quarter net telephone to item dependable subscription-led maturation successful 2025, a fiscal outlook calling for continued debased double-digit momentum successful 2026, and what enactment described arsenic a semipermanent accidental to use artificial quality crossed infrastructure engineering workflows.

For full-year 2025, CFO Werner Andre said full gross was $1.502 billion, up 11% connected a reported ground and 10% successful changeless currency. Fourth-quarter gross was $392 million, expanding 12% reported and 10% successful changeless currency.

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Andre said subscription gross remained the superior driver, rising 13% reported (12% changeless currency) for the afloat year, and 13% reported (11% changeless currency) successful the 4th quarter. Subscription gross accounted for 92% of full revenue, up from 2024. He added that E365 represented 45% of subscription revenue, up from 42% successful 2024.

Other gross categories were mixed. Andre said perpetual licence gross was fundamentally level for some the 4th and year, portion work gross declined 6% reported (7% changeless currency) for the year, with a humble summation successful the 4th quarter.

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On profitability, Andre reported GAAP operating income of $79 cardinal successful Q4 and $363 cardinal for the year. Adjusted operating income little stock-based compensation (SBC) was $94 cardinal successful Q4, representing a 24.1% margin, and $430 cardinal for the year, up 16% with a 28.6% margin. He said the full-year effect reflected 110 ground points of borderline improvement, accordant with the company’s outlook.

Free currency travel for 2025 totaled $520 million, up 24% year-over-year. Andre noted Q4 collections were peculiarly beardown and emphasized that the 4th fourth is Bentley’s largest renewal period, which tin present year-to-year variability based connected the timing of collections.

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CEO Nicholas Cumins said fourth-quarter yearly recurring gross (ARR) accrued 11.5% year-over-year successful changeless currency, with nett gross retention unchangeable astatine 109%. He added that Bentley again contributed 300 ground points of ARR maturation from caller logos, chiefly successful the SMB segment, and said the institution has added astatine slightest 600 caller SMB logos done its online store for 16 consecutive quarters.

Andre said Bentley ended Q4 with ARR of $1.462 cardinal astatine quarter-end spot rates and posted sequential quarterly ARR maturation of 4%, which helium said aligned with expectations fixed emblematic fourth-quarter seasonality and the timing of plus analytics deals and programmatic acquisitions. For the afloat year, helium said M&A contributed little than 40 ground points to ARR growth.