Bentley Systems, Incorporated Q1 FY2026 earnings call

Greg Bentley discussed Bentley's advantages in infrastructure AI, including incumbency as digital quartermasters, modeling and simulation standards, and asset analytics initiative exceeding $50 million in annual revenue run rate. Nicholas Cummins updated on AI initiatives like Bentley Asset Analytics with new general manager and Open Applications engaging with leading organizations, instrumenting applications and releasing MCP server for STAAD. Business highlights included AR growth of 11.5%, net revenue retention rate at 109%, Enterprise 365 growth, new logos contribution, and performance by infrastructure sector (resources fastest growing, public works utilities solid, industrial solid, commercial facilities flat) and geographic region (Americas solid, Latin America standout, EMEA fastest growing, Asia Pacific solid). Also, details on resources sector's growth since acquiring Sequent, becoming second largest sector with over 20% of sector attributable ARR and fastest growing.

In Q1 2026, Bentley's year-over-year AR growth was 11.5%. Subscription revenues represent 93% of total revenues and grew 14.7% for the quarter. Resources was the fastest growing sector. ARR ended the first quarter at 1,495,000,000 at quarter end spot rates, with year-over-year ARR growth rate of 11.5% on constant currency basis. 45% of revenue comes from 220 accounts spending over $1 million per year, and almost two-thirds from 824 accounts spending over $250K per year, mostly through E365 consumption subscriptions.

Bentley continues to expect quarter over quarter ARR growth seasonality similar to 2025, organic year over year ARR growth rates relatively stable during the year. Full year free cash flow outlook is 500 to 570 million. Remains comfortable with 2026 financial outlook range provided on Q4 call. If end of April exchange rates prevail, Q2 to Q4 gap revenues would be negatively impacted by approximately 3 million relative to the exchange rates assumed in the 2026 financial outlook.

Q: Joe Vrewink from Robert Baird asked about Bentley's product efforts to bring the proposition closer to reality.

A: Greg Bentley said path is API consumption, agents can do more iterations, benefits both engineering firms and owner-operators.

Q: Matt Hedberg from RBC asked about key catalysts for constant currency ARR.

A: Nicholas Cummins said resources and mining continuing strong, Bentley Asset Analytics growing strongly, core business infrastructure going well, and programmatic acquisition.

Q: Jason Salino from KeyBank asked about risks from customer perspective on charging via API consumption.

A: Nicholas Cummins explained API consumption is indirect usage, Bentley Infrastructure Cloud data not monetized, discussing different commercial approach for engineering applications.

Q: Sidi Panagrahi from Mizzouville asked about customer feedback on AI and ARPU uplift.

A: Nicholas Cummins said accounts validate opportunity, very large organizations investing in own AI-driven workflows, early days for monetization, and AI could expand time.

Q: Dylan Becker from William Blair asked about services org and direct customer relationships.

A: Greg Bentley said dedicated teams help accounts pursue new business, high-level advocacy efforts with governments, financial sector, etc.

Q: Jay Bleashour from Griffin asked about adoption metrics for Bentley Infrastructure Cloud and API throughput.

A: Nicholas Cummins said Bentley Infrastructure Cloud is data foundation for AI, not using data to train own AI unless explicitly asked, and API throughput first step is making APIs exist, MCP servers available.

Q: Alexei from JP Morgan asked about initiatives on applying AI to mission-critical engineering.

A: Nicholas Cummins said efforts to deliver own AI capabilities and instrument applications, co-innovation initiative launched, identifying use cases like for STAAD.

Q: Daniel Jester from BMO asked about customer behavior on data ownership.

A: Nicholas Cummins said largest infrastructure organizations advanced in own AI efforts, infrastructure organizations realizing data ownership difference, and data reuse in future designs a virtuous cycle.

Q: Taylor McGinnis from UBS asked about drivers of constant currency net new ARR growth.

A: Nicholas Cummins said led by segment business and mining momentum.

Q: Joshua Tilton from Wolf Research asked about Sequent acceleration and Virtuoso churn.

A: Nicholas Cummins said no further acceleration expected for Sequent in 2026, Virtuoso has growth from new logos and existing accounts expansion, retention rate stable