Bentley Systems Beats Three Times, Stock Still 27% Off
Bentley Systems beat earnings for the third consecutive quarter, with EPS surprise of 9.4% and trailing revenue of $1.60 billion growing 12.8% year-over-year. Despite these results and $398 million in
Bentley Systems Beats Three Times, Stock Still 27% Off
NEW YORK, October 4 —
Three consecutive earnings beats, each larger than the last, and Bentley Systems, Incorporated (BSY) still trades below the price at which its Chief Legal Officer disposed of shares five weeks ago. At $32.23, the stock sits roughly 27% below analyst consensus of $43.93, a gap that accelerating results have yet to explain away.
- EPS $0.35 beat estimates by 9.4%: third consecutive beat, each accelerating (prior two: 5.6% and 3.5%).
- Trailing FCF $398M; revenue $1.60B growing 12.8% YoY; gross margin 81.8%.
- Stock at $32.23 vs. $43.93 consensus target; CLO disposed shares at $36.75 on August 31.
Beats That Aren't Moving the Stock
Bentley Systems sells the software engineers use to model roads, bridges, tunnels, and underground infrastructure: MicroStation and the Open suite (OpenRoads, OpenBridge, OpenRail), the iTwin cloud platform for digital infrastructure twins, and ProjectWise for project collaboration. Trailing twelve-month revenue of $1.60 billion is growing 12.8% year-over-year at an 81.8% gross margin, generating $398 million in free cash flow. The beat streak reversed a prior 1.1% miss with successive gains of 3.5%, 5.6%, and now 9.4%. Against that, 8.7% of the float is sold short, signaling a structural concern the quarterly figures have not dislodged.
A Vest Transaction, Not a Sell Signal
On August 31, CLO David Shaman had 6,665 shares withheld at $36.75 to cover taxes on a vesting award, a mandatory, non-discretionary transaction rather than a voluntary sale. That price stands $4.52 above where BSY trades today. No executive filed an open-market purchase or sale during the trailing 90 days; the September 29 Form 4 filings across the management team were compensation grants. Executive Chair Gregory Bentley transferred 14,176 shares as gifts in August, while the founding family's combined stake remains 45.4%. A third-party research outlet placed BSY among stocks with "questionable fundamentals" despite $398 million in trailing free cash flow, a contradiction the market has not resolved.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| BSY | $9.7B | 20.5x | -43.2% |
| PCOR | $7.7B | 21.5x | -30.3% |
| PTC | $15.6B | 16.1x | -29.7% |
| PCTY | $7.7B | 14.9x | -7.6% |
| VERX | $1.9B | 11.7x | -52.2% |
| SSNC | $18.4B | 10.2x | -10.1% |
The Next Earnings Report Is Now the Thesis Test
BSY filed an 8-K on September 11 disclosing an event under Item 8.01 whose content is not described in the filing header, a variable the 27% discount to consensus may or may not already reflect. Net debt of $1.12 billion and 8.7% short interest frame the skeptical case; the forward P/E of 20.4x can be put in sector context using the P/E calculator. A fourth consecutive beat, or the first miss, will be the sharpest read yet on whether the $43.93 analyst target is reachable or an artifact of stale models. Run the free Bentley Systems, Incorporated deep-dive →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
How much did Bentley Systems beat earnings by?
Bentley Systems beat earnings by 9.4% in its most recent quarter, marking the third consecutive beat, with each beat larger than the last (prior two at 5.6% and 3.5%).
Why does BSY trade below analyst price targets?
Despite strong earnings and $398 million in trailing free cash flow, the stock trades 27% below the $43.93 analyst consensus target. Short interest at 8.7% of float suggests the market holds structural concerns that quarterly figures have not addressed.
What is Bentley Systems' business?
Bentley Systems sells infrastructure software including MicroStation and the Open suite (OpenRoads, OpenBridge, OpenRail), the iTwin cloud platform for digital infrastructure twins, and ProjectWise for project collaboration.
What were Bentley's revenue and profit margins?
Trailing twelve-month revenue was $1.60 billion growing 12.8% year-over-year with an 81.8% gross margin, generating $398 million in free cash flow.
Did Bentley executives buy or sell stock?
On August 31, Chief Legal Officer David Shaman had 6,665 shares withheld at $36.75 to cover taxes on a vesting award, a mandatory, non-discretionary transaction. No executives filed open-market purchases or sales during the prior 90 days.
Bentley Systems has posted three consecutive accelerating EPS beats — the most recent topping estimates by 9.4% — and generates $398 million in free cash flow annually. Yet the stock at $32.23 sits roughly 27% below analyst consensus and is trading below the price at which a company insider disposed of shares just five weeks ago.