Executive Summary

Q1 2025 delivered a clean beat on both revenue ($370.5M) and Adjusted EPS ($0.35) versus S&P Global consensus, with GAAP diluted EPS at $0.28; management reaffirmed the full-year 2025 outlook and highlighted an incremental ~$20M FX tailwind to Q2–Q4 revenues if late‑April rates persist . Consensus: Revenue $366.6M*, EPS $0.30* (beats) (Values retrieved from S&P Global).
Mix and profitability improved: subscriptions grew 11–13% y/y and reached 92% of total revenue; AOI less SBC margin rose to 34.1% and operating margin to 31.1%, aided by subscription mix, scale, and OpEx seasonality .
Demand backdrop remains resilient: ARR +12% y/y cc; NRR 110%; E365 renewals and SMB new logos (>600 for the 13th straight quarter) supported growth; Public Works & Utilities led, India strong, China <2.5% of ARR as expected .
Strategic catalysts: expanded Google partnership for asset analytics (Blyncsy + Street View + Vertex AI), FedRAMP progress for OpenGround (ProjectWise to follow), and Seequent Evo launch bolster AI/analytics and government exposure narratives for 2H and beyond .

What Went Well and What Went Wrong

What Went Well
- Beat and reaffirm: Revenue $370.5M (+9.7% y/y reported) and Adjusted EPS $0.35 exceeded consensus, with ARR growth +12% cc and strong FCF ($216M); full‑year outlook maintained; FX now a potential ~$20M tailwind to Q2–Q4 revenues . Consensus: Rev $366.6M*, EPS $0.30* (Values retrieved from S&P Global).
- Mix and margins: Subscriptions at 92% of revenue; AOI less SBC margin 34.1% (+80 bps y/y) and operating margin 31.1% (+390 bps y/y) supported by revenue mix and back‑half‑loaded OpEx .
- Strategic progress: Asset analytics momentum (two new DOT wins; Google Street View + Vertex AI integration), FedRAMP In Process for OpenGround (ProjectWise next), and Seequent Evo launch position BSY for broader TAM capture .
What Went Wrong
- Services softness: Professional services declined 18% y/y and now 5% of revenue, reflecting Cohesive’s lower Maximo work; services continue to be volatile and low-margin .
- China headwinds persist: China (<2.5% of ARR) performed as expected amid economic/geopolitical pressures; ARR ex‑China grew 12.5% y/y but China remains a drag .
- Seasonality and timing: Management again flagged back‑half weighting of ARR growth (Q3 seasonal low expected) and timing of asset analytics deals versus prior year, tempering linear extrapolation of Q1 strength .

Financial Results

Headline Metrics vs Prior Year and Prior Quarter

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenue ($M)	$337.8	$349.8	$370.5
GAAP Diluted EPS ($)	$0.22	$0.16	$0.28
Adjusted EPS ($)	$0.31	$0.21	$0.35
Operating Income Margin (%)	27.2%	17.6%	31.1%
AOI less SBC Margin (%)	33.3%	21.5% (Adj OI w/SBC)	34.1%
Cash from Operations ($M)	$205.0	$81.6	$219.4
Free Cash Flow ($M)	$201.4	—	$216.4

Notes: AOI less SBC is comparable to the prior “Adjusted OI w/SBC” measure; naming updated in Q1 2025 .

Revenue Mix

Revenue Component ($M)	Q1 2024	Q4 2024	Q1 2025
Subscriptions	$307.1	$315.6	$342.3
Perpetual Licenses	$9.5	$14.3	$10.8
Services	$21.2	$19.9	$17.4
Total Revenue	$337.8	$349.8	$370.5

KPIs and Cash Metrics

KPI	Q1 2024	Q1 2025
ARR ($M)	$1,186.5	$1,319.3
NRR (LTM, %)	108%	110%
Recurring Revenue (% of total, LTM)	90%	92%
CSS Deposits ($M, Balance Sheet)	$370.0 (approx., CSS not split in 2024)	$447.9
Cash from Operations ($M)	$205.0	$219.4
Free Cash Flow ($M)	$201.4	$216.4
Adjusted EBITDA ($M)	$135.9	$148.1
Cash & Equivalents ($M)	$141.6	$83.6

CSS deposits were reclassified to a separate line and primarily relate to E365 pre-funded consumption; management highlighted the working capital support and growth (+$78M y/y to $448M) .

Results vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($M)	$366.6*	$370.5	+$3.9 (+1.1%)*
Adjusted EPS ($)	$0.30*	$0.35	+$0.05 (+16.6%)*

Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance (2/26/25)	Current (Q1 Call)	Change
Total Revenues ($M, GAAP)	FY 2025	$1,461–$1,490	Reaffirmed range	Maintained
Total Revenues ($M, CC)	FY 2025	$1,481–$1,510	Reaffirmed; FX could add ~$20M to Q2–Q4 at end‑Apr rates	Maintained; FX tailwind noted
Subscriptions Rev Growth (CC)	FY 2025	10.5%–12.5%	Reaffirmed	Maintained
Perpetual Licenses Growth (CC)	FY 2025	~Flat	Reaffirmed	Maintained
Services Growth (CC)	FY 2025	~Flat	Reaffirmed	Maintained
Constant Currency ARR Growth	FY 2025	10.5%–12.5%	Reaffirmed	Maintained
Adjusted OI w/SBC Margin	FY 2025	~28.5% (+100 bps y/y)	Reaffirmed	Maintained
Effective Tax Rate	FY 2025	~21%	Reaffirmed	Maintained
Free Cash Flow ($M)	FY 2025	$415–$455	Reaffirmed; ~60% H1 weighting	Maintained
Capex ($M)	FY 2025	~$20	Reaffirmed	Maintained
Dividend/Capital Return	Ongoing	Dividend raised to $0.07 in Q1	Q2 dividend declared at $0.07 (5/23)	Ongoing returns

Earnings Call Themes & Trends

Topic	Q3 2024 (Q‑2)	Q4 2024 (Q‑1)	Q1 2025 (Current)	Trend
AI/3D/Asset Analytics	Announced Cesium acquisition and Google partnership for geospatial content; new asset analytics portfolio	Continued to emphasize AI initiatives and foundation for growth	Expanded with Google Street View + Vertex AI in Blyncsy; OpenSite Plus AI for drawings; internal dev productivity +10–20% from AI	Strengthening
Government/Funding & Permitting	Robust demand backdrop; strategic initiatives	2025 outlook introduced; demand robust	IIJA remains tailwind; permitting reform could accelerate grid and mining; mix shift towards roads may favor BSY	Positive policy tailwinds
Product/Commercial Model	Subscriptions 91% YTD; services decline at Cohesive	Recurring at 91% for 2024	Subscriptions 92%; E365 floors/ceilings and multi‑year escalators improve visibility	Mix quality improving
Regional Trends	Broad-based growth; strategy momentum	Entered 2025 well‑positioned	Americas solid (LATAM standout), EMEA solid (ME strong), India main APAC driver; China <2.5% of ARR	Stable to improving ex‑China
Fed/Gov Cloud Readiness	—	—	OpenGround FedRAMP In Process; ProjectWise to follow; USACE sponsorship	New gov’t channel enabler
Services/Maximo Exposure	Cohesive Maximo work declining	Services 6% of revenue in 2024	Services down 18% y/y; 5% of total	Ongoing headwind, de‑risking mix

Management Commentary

“Our results position us well in regard to our financial outlook for the year… The fundamentals of our demand environment remain the same: a critical need for better and more resilient infrastructure, a continued shortage of engineers, and backlogs extending further out.” — CEO Nicholas Cumins .
“Subscription revenues now represent 92% of total revenues… Our SMB and E365 initiatives continue to be solid contributors… AOI less SBC was $126M… margin of 34.1%.” — CFO Werner Andre .
“Our ARR directly from infrastructure owner operators has now reached parity with… contractors… Recurring revenues have now reached a high watermark of 92% of total.” — Executive Chair Greg Bentley .
“If end of April exchange rates would prevail throughout the remainder of the year, our Q2 to Q4 GAAP revenues will be positively impacted by approximately $20 million.” — CFO Werner Andre .
“We are going one step further… leveraging Google Street View data and Vertex AI [in Blyncsy]… we expect higher win rates and larger reach.” — CEO Nicholas Cumins .

Q&A Highlights

U.S. funding mix and IIJA priorities: Headline federal funding expected to remain, with mix shifting (more roads vs rail) and focus on permitting reform/efficiencies—positive for BSY’s road and grid exposure .
Macro sensitivity: Commercial facilities/industrial remain more cyclical; industrial sentiment improving in the U.S. with reshoring initiatives; April trends similar to March consistent with reaffirmed guide .
ARR linearity/seasonality: Q1 ARR +2.1% q/q (vs +2.2% prior year); quarterly ARR growth back‑half weighted; Q3 expected seasonal low due to prior deal timing and Cesium roll‑off .
Asset analytics momentum: Two new DOT wins (Florida, Michigan) in Q1; Google integrations expected to expand geographies and win rates; telecom analytics also grew with net tower adds .
AI in products and internally: OpenSite Plus automates drawings; extending to other civil disciplines; internal AI tools saving 10–20% developer time .

Estimates Context

Q1 2025 results beat S&P Global consensus on revenue and EPS: Revenue $366.6M* vs actual $370.5M; Adjusted EPS $0.30* vs actual $0.35. Estimate counts: 15 revenue, 13 EPS* (Values retrieved from S&P Global). Actuals per 8‑K .
Implications: Modest upward bias to FY revenue modeling given FX tailwind commentary (~$20M to Q2–Q4) and subscriptions mix, with estimate revisions likely to focus on margin durability given reiterated +100 bps AOI w/SBC expansion target .

Key Takeaways for Investors

Quality beat with improving mix: Subscriptions at 92% and AOI less SBC margin at 34.1% underpin defensibility; services exposure continues to shrink .
Guide intact with FX upside: 2025 outlook reaffirmed across revenue, ARR, margin, FCF; incremental ~$20M FX tailwind to Q2–Q4 a subtle positive .
Demand visibility: NRR at 110%, ARR +12% cc, E365 multi‑year floors/ceilings and SMB engine (>600 new logos via online store) sustain growth trajectory .
Asset analytics optionality: Google integrations (Street View + Vertex AI) and Q1 DOT wins provide a pipeline for out‑year growth and narrative expansion beyond core design tools .
Government channel unlock: FedRAMP progress (OpenGround In Process; ProjectWise next) and USACE sponsorship open federal opportunities; aligns with IIJA and permitting reform momentum .
Regional balance, China contained: Strength in Americas/EMEA/India offsets China (<2.5% ARR) softness; supports diversified growth .
Capital allocation supports deleveraging and returns: Senior debt fully paid down; net leverage 2.4x adj. EBITDA; dividend raised to $0.07 and maintained in Q2; buybacks offset SBC dilution .