Bentley Systems Inc (NASDAQ: BSY)

Bentley Systems is the infrastructure engineering software company, specializing in solutions that advance the design, construction, and operation of global infrastructure. The company provides a comprehensive portfolio of software applications that enable digital workflows across the entire infrastructure lifecycle, from initial planning and design to asset performance and maintenance. Bentley Systems serves professionals in engineering, architecture, construction, and operations, supporting sectors such as public works, utilities, resources, industrial, and commercial facilities. Its software integrates modeling, simulation, collaboration, and digital twin technologies to enhance productivity, quality, and resilience in infrastructure projects.

Bentley Systems generates revenue primarily through software licensing and subscription models. Its offerings include perpetual licenses with annual maintenance subscriptions, enterprise-wide consumption-based subscriptions (Enterprise 365), and cloud services subscriptions (CSS). The company also earns revenue from specialized enterprise services, such as implementation support and advisory services for digital workflow adoption. Subscriptions account for the majority of its annualized recurring revenue (ARR), with pricing based on usage, user counts, or asset bands. Small and medium-sized businesses access its software through named-user subscriptions via the Virtuosity e-store, while larger enterprises typically adopt the Enterprise 365 model for global, all-inclusive access.

The company operates through the following segments:

• Public Works/Utilities: This segment supports the design, construction, and operation of critical infrastructure, including roads, rail, bridges, tunnels, airports, ports, and utility networks for electricity, gas, water, wastewater, and communications. It represents approximately 59% of sector-attributable ARR and serves government agencies, municipalities, and utility providers.

• Resources: This segment focuses on software for mining, oil and gas upstream activities, offshore projects, pipelines, environmental management, and renewable energy. It accounts for approximately 27% of sector-attributable ARR and caters to companies in natural resource extraction and energy production.

• Industrial: This segment provides solutions for process and discrete manufacturing, oil and gas downstream activities, and power generation. It contributes approximately 9% of sector-attributable ARR and serves industrial enterprises and engineering firms.

• Commercial/Facilities: This segment offers software for the design and management of campuses, office buildings, retail facilities, and hospitals. It represents approximately 5% of sector-attributable ARR and targets commercial developers, facility managers, and architectural firms.

Bentley Systems holds a leading position in the infrastructure engineering software market, competing against both large global enterprises and niche providers. Its key competitors include Autodesk, Trimble, Hexagon, Schneider Electric’s AVEVA unit, Dassault Systèmes, and Esri. The company differentiates itself through the breadth and integration of its software portfolio, which spans multiple disciplines, sectors, and lifecycle stages. Its commitment to open standards, interoperability, and cloud-native digital twin technologies further strengthens its competitive edge. Bentley Systems also benefits from a direct sales model, which accounts for 94% of its revenue, enabling strong customer relationships and tailored enterprise solutions.

Bentley Systems serves nearly 42,000 accounts across 189 countries, including engineering and construction firms, as well as public and private infrastructure asset owners and operators. Its customer base is evenly split between project delivery enterprises (52% of 2025 revenue) and asset owners (48% of 2025 revenue). The company does not rely on any single account for material revenue, with no customer representing more than 2% of total revenue in recent years. Its software supports a wide range of infrastructure projects, from large-scale public works to industrial and commercial facilities, ensuring diversification across sectors and geographies.