Bentley Systems Q2 2025: Contradictions in Macro Stability, ARR Trends, and AI Strategies Unveiled

Macro environment stability, ARR linearity and seasonality, AI integration and product pricing strategy, macro environment and infrastructure investment, AI integration and strategic focus are the key contradictions discussed in Bentley Systems' latest 2025Q2 earnings call.



Strong Financial Performance and ARR Growth:
- Bentley Systems reported total revenue of $364 million for Q2 2025, up 10% year-on-year on a reported basis and 9% in constant currency.
- The company's last 12 months recurring revenues increased by 13% year-on-year, with an ARR growth rate of 11.5%.
- This growth was driven by a net revenue retention rate of 109%, supported by strong demand for infrastructure engineering solutions amid capacity constraints.

Regional and Sector Performance:
- In the Americas, particularly Latin America, and EMEA (Middle East and Europe) regions, Bentley Systems experienced solid growth.
- The resources sector led the growth, with Seequent delivering a particularly strong performance, driven by mining activities.
- U.S. accounts maintained confidence despite ongoing uncertainty, with increased optimism around infrastructure investment opportunities.

Data Center Opportunity and AI Integration:
- The company sees significant opportunities in data centers, with a focus on infrastructure surrounding these facilities.
- Bentley offers software for designing various aspects of data centers and integrates AI capabilities to enhance productivity.
- The integration of Cesium's platform into Bentley's product suite is aimed at expanding the company's geospatial capabilities, enhancing project visualization and navigation.

Impact of Economic Factors and Permitting Reform:
- China's economic and geopolitical headwinds resulted in its representation dropping to 2% of total ARR.
- Permitting reforms, particularly in the U.S., are expected to benefit infrastructure sectors like critical minerals and strategic verticals, positively impacting Bentley's Power Line Systems and Seequent businesses.