
Bentley Systems (BSY) Stock Forecast & Price Target
Bentley Systems (BSY) Analyst Ratings
Bulls say
Bentley Systems reported Q3 subscription revenue of $344.3 million, reflecting a 14% year-over-year increase, which underscores robust global infrastructure project activity and an increasing adoption of its engineering tools. The annual recurring revenue (ARR) reached $1,405 million, marking a 10.5% growth year-over-year in constant currency, and this growth was supported by continued demand in the public works and utilities sector, which constitutes a significant portion of Bentley's revenue. Additionally, the company demonstrated improved profitability with EBITDA margins rising to 27.7%, up from 26.7% the previous year, indicating enhanced operational efficiency alongside ongoing revenue growth.
Bears say
The financial outlook for Bentley Systems appears negative primarily due to a significant reduction in services revenue guidance, reflecting continued challenges in their IBM Maximo-related work, resulting in a $5 million shortfall from prior expectations. Additionally, while total revenue exceeded estimates at $375.5 million, the performance of perpetual licenses fell short of forecasts, indicating potential weaknesses in revenue generation from core offerings. Furthermore, concerns regarding the stability of annual recurring revenue (ARR) growth contribute to an uncertain financial trajectory, as focus shifts to the upcoming Q4 renewal cohort amidst a lowering of long-term financial estimates.
This aggregate rating is based on analysts' research of Bentley Systems and is not a guaranteed prediction by Public.com or investment advice.
Bentley Systems (BSY) Analyst Forecast & Price Prediction
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