Bentley Systems, Incorporated (BSY) Stock Analysis

Bentley Systems’ principal competitive advantage lies in its deep specialization and breadth across infrastructure engineering software, serving both design and operations phases. Its portfolio—anchored by flagship products like MicroStation, ProjectWise, and the iTwin digital twin platform—addresses the full lifecycle of infrastructure assets, a scope few rivals match. This breadth enables Bentley to cross-sell and embed itself within customer workflows, raising switching costs.

The company’s recurring revenue model is robust: 90% of 2024 revenues were subscription-based, with a 99% account retention rate and a 110% dollar-based net retention rate, indicating strong customer loyalty and expansion within existing accounts. Direct sales channels account for 93% of revenue, supporting close customer relationships and tailored solutions.

Bentley’s global reach (serving 41,000 accounts in 189 countries) and sectoral diversification (public works/utilities, resources, industrial, commercial/facilities) reduce reliance on any single market or client. Its open API ecosystem and interoperability with third-party tools further entrench its software in client environments.

Compared to Autodesk, which dominates building design, and Hexagon or Trimble, which focus on geospatial and construction, Bentley’s strength is in complex infrastructure and asset management. Its focus on digital twins and AI-powered analytics (e.g., AssetWise, Seequent) positions it ahead in the shift toward data-driven infrastructure operations.

Potential threats include currency headwinds, slower adoption in China, and intensifying competition in cloud-based solutions. However, Bentley’s high retention, sector breadth, and integration into mission-critical workflows provide a durable moat.