Bentley Systems (BSY) Stock Forecast & Price Target

Bentley Systems showcased a robust annual recurring revenue (ARR) of $1,379 million, reflecting an 11.5% year-over-year growth on a constant currency basis, surpassing market consensus expectations. The company also achieved a notable increase in subscription revenue, reaching $333.5 million for the second quarter, which constitutes a 12.1% year-over-year growth and exceeds internal estimates. This solid financial performance highlights Bentley's resilience and stability in a challenging macroeconomic environment, underscoring its strong position within specialized infrastructure software markets.

Bentley Systems has demonstrated stable EBITDA margins, reported at approximately 36% in Q2, slightly exceeding consensus expectations. However, the company faces significant risks, including macroeconomic fluctuations, intense competition from larger vendors, and pressures from M&A activities that could distort its competitive position. Moreover, ongoing pricing pressures and potential changes in market strategies pose further concerns about Bentley's long-term profitability and growth prospects.