Bentley Systems (BSY) 7 Nov 232023 Q3 Earnings call transcript

Good morning, and thank you for joining Bentley Systems' Q3 2023 Operating Results. I'm Eric Boyer, Bentley's Investor Relations Officer.

On the webcast today, we have Bentley Systems' Chief Executive Officer, Greg Bentley; Chief Operating Officer, Nicholas Cummins; and Chief Financial Officer, Bernard Andre.

This webcast includes forward-looking statements made as of November 7, 2023, regarding the future results of operations and financial position, business strategy and plans and objectives for the future operations of Bentley Systems, Inc. All such statements made in or contained during this webcast other than statements of historical fact are forward-looking statements. available investors.bentley.com on on be Relations Systems will at website November webcast for Bentley replay Investor This X, XXXX. we'll presentation, our conclude Q&A. After with Bentley And Greg that, let introduce CEO with me Bentley. of the Systems,

interest interpreting our of a course, natural Each performance. our each for BSI. Good morning, ARR our business and start quarterly thanks in by and investment I quarter, is growth within of year-over-year KPI to you headline your directions agenda, results. In operating

ticked in down this financial puts operating in nominally our the growth in XX.X% year, and our cash that While and specific quarter, margins 'XX given of to outlook explain, to will planned this we midpoint QX, annual to momentum I takes flows. and nonetheless, our are gains the which tracking for likewise represents continuity strong steadily

even quarter this flywheel. as the our works/utilities way, expansion to effect mainstay market Act the sector is infrastructure continues U.S. With in the Jobs among emerging ARR almost fundamental more from strong funding. in our investment works/utilities benefit transportation underlying half governor of both on beyond infrastructure this and U.S. broadly conditions finally the public Leading here, the public serves

already of that to was engineering anticipate in firms of agreement This for a growing an meet capacity year workers, medium asked reflecting time lack quarter's an this will even digital strong investments, throughout qualified expectations gap survey resource gap. market from this for an workflow firms sentiment across capacity firms stronger of engineering Even of from XX ACEC all engineering next across there ACEC see sectors, about that a resource yet backlog backlog is for engineering reports higher U.S. When current work. result constraining months, backlog. year more you engineering economic permanent now, the a

increased now capacity before used engineering day per a by this continually since of resource applications are XX the the gap in that Workday duration that our minutes has indicator is pandemic. Another average

come shortly will these workdays. We back to count

firsthand, everywhere capacity is resulting report and And growth indicator retention, its sustained than will across organizations with gap high net Nicolas ever infrastructure in engineering pervasive our existing motivating trailing regions, broadly revenue more sectors As infrastructure demand the for accounts remains the global prioritize going the digital. level. to at

grow, this So per accounts in program or While to EXXX spend within rather then and ARR, plurality with EXXX upgrading over EXXX SMB, what's is up quarter down ARR prospects ARR most this accounts. largest consider hence, end? of as QX to year-over-year accounts both our proportion, growth accretion program. of of through recent existing under rather from And our be course, now select EXXX 'XX, than subscription EXXX a by $XXX,XXX continued year our to in for we

calendar a had followed XX X holidays effectively weekend rather holiday than QX's began by ended a U.S. weekend QX 'XX accounts charge our applications, and consumption users we in collaboration total the project-wise respectively, of the charges daily EXXX, for majority substantially our calendar year. with X X with ago, the which were number year and in weekday that of of on but asset-wise or occurs But the Under A enterprise quarter. quarter. for with consumption on a days our weekdays, systems during the workdays are EXXX based assets, 'XX last day

U.S., is aren't holidays Now though half of in our the universal. even business

suffers consumption the year-over-year X-day 'XX effect comparison, QX's we even XXXX of as as EXXX setting of weekend, count comparative workday aside having had if than result less a weekdays all X So just weekday workdays, that QX.

during this ARR X, consumption. growth QX's of have X full 'XX But -- you here, weekday fourth also count. trailing both the quarters year-over-year the QX multiplying 'XX and will year by by as EXXX can ARR the as here same normalize quarters weekday see EXXX annualize we negatively because years was Moreover, consumption workdays phenomenon

course, from from 'XX as logos, ARR and growth. for discussing, only overall have our QX, our but of Now net of ARR we comes for growth, new existing not been again which increasingly accounts, also retention our accretion accounted X% through EXXX for

New tend start as SMB. to logos, of course,

on our own from at investments additions inside in We quarterly in compound. digital, virtue have engagement. we digital The become continue better QX, our business, faster. SMB By is to in growth at getting focused SMB virtuosity sales EXXX to continually confident accounts. fast of being grow ARR able as SMB And for our going our grow was group net as subscriptions our least Virtuoso enterprise

over 'XX In offers choice our in attracted differentiation also for who addition SMB perpetual from don't principal to largely that sales licenses, logos. But succeeding. new further subscriptions, appealing group QX, XXX competitor, is have Virtuoso subscriptions and prospects this again strategy to our

almost in 'XX added we see, purchasers And in upsurge unprecedented XXX incremental perpetual perpetual rather we overall, saw licenses QX, who an During QX than through license you as chose new subscriptions. year-over-year logos sales.

China We have there in towards this generally expected localization. intentionally broken pivot we out as here

result, business and continued result in expected there overall and in its decline. revenue new ARR China while a year-over-year, As our sequentially did increase

fact, In growth. maintain our business, -- China, XX% its ARR level excluding highest of of the did year-over-year

to consumption rate and with light purchases. decline business notwithstanding EXXX puts To our growth and observed in directions the slight quarter of transition combination light strong summarize Workday the license year-over-year I ARR anomaly to of these takes, of the of last the compared its in pleased 'XX was QX,

I towards live of infrastructure the We independent digital with with and professionals competition our [ urine annual chosen stream there finalists month we in from going going XXX physically For over ] had jewelries our media, significant corporate we last Singapore Conference, my awards of intelligence. and where by entitled development, Infrastructure gathered digital I presentation, there. members start infrastructure keynote world's

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a which is you and website. highlights conference Relations for attended Officer, available our edited Relations Investor now Eric video compiled Investor keynotes the on So and other has X Boyer, of

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digital that incorporating of of simulation cycle already this nominated simulation, that XX% the encouraging of underlies year, while building be virtually such XX% by resilient is design, our is credited it asset for any in seamlessly it's performed XXX-plus now while blocks more for we significant modeling the And think finalists all of of XD, and XD projects. that operations. advancements even fully iTwin iTwin also twin during I inevitably digital platform construction all or for life all infrastructure Given delivering to intelligence twin credit believe future the

our data compound Indeed, Bentley schema life in Cloud project cycles. value platform Infrastructure the and infrastructure enables iTwin asset engineering to across and throughout commonality

As are components million to accumulating month our the over unique of currently value, that future new we extent XXX their users potential project-wise for digital benefit. per this estimate

minimize AI and further of new At next the data yet for will how their copilot infrastructure project-wise, being Nicholas value industrial year-end to of the projects globally its North already subject reuse becomes week. by and compounding inspections, from life in underway our across compound for same knowledge, their talk While initiative data value projects. leverage instance, To engineering through account with separate to showcased an infrastructure, information safety where from cloud-based only management. deployment training implementation BP, norm across all to will can is generative now central of for infrastructure their there. asset operations finalists cycle enterprise Sea release optimize the data I remain working BP's forefront management, and accumulating In costs, highlighted in BP's systems infrastructure strategies asset-wise unfortunate asset-wise information is the value otherwise, intelligence improve data to of of and projects sectors last in through several XXXX increase this press about availability reliability operations, disconnected, store compound the risk after maintenance the

infrastructure value, here. billion #XX is the owners among $XXX Bentley just XXXX released link BP at Infrastructure top At of net available rankings the XXX

fully engineering compounding rate are from As who for XXX from our now again total. growth rate owners these have And now XXXX. that from our through XXXX is top our is by XX% from half top it of run of while overall data ongoing serving greatest the just revenue infrastructure general, maintenance, revenue revenue of rate from over advancements run infrastructure their like BP XX% digital these digital to opportunities comparable XXX our operations gratifying revenue rate in and in I current twins operators our twin report run run the believe XX value exceeds for owner of the most owners increased

this in ARC rankings, BSY's subsectors intelligence. only not infrastructure engineering infrastructure the for annual that towards me, To these on tools means they track right design are individually, big now also #X which ROI total. of in but acknowledged year we for from the owner-operators tables leadership Speaking track

to others, quarter, financially strategically. Finally, even more acquisitions significant report immaterial each these of most X last programmatic since is while I glad am than

AI acquisitions Ventures applies view our our can of paint iTwin such venture conditions approach adapted become environment VC detect actual to significant as that multitude analytics zones. changed companies for call quality small to [ within planned outright in Our roadway I opportunistically. we the immediate lane crowd and/or first construction Blanks capital a earlier-stage ] of to asset maintenance twin than of operators, to typical ecosystem. obstructions, versus valuation data source what now digital are Rather open divider stakes, has acquisition

our year monetize incrementally to for model, digital business will have link. beyond instance, We to and about mile more opportunities subscriptions analytics per which twin say consolidating to asset user, primarily asset as current primary next go per charges does per

slowdown induced mines and exploration market capital year's this discussed in for I on Sequana. quarter, Last its impact new

the mines source And of mining their though BSY Flow growing Sequent surface the depends role and state pause a the that year Seplat, other during infrastructure itself, market-leading simulation this flow continuous QX, for of we to expansion wellbores state our further platform geothermal acquisition, as pending Like Span's comprehensiveness reservoirs, solutions in A for balance To extending announced faster for as and Power of acquisition mainstay. which almost While production. networks. QX. continued operating of this, geothermal is of subsurface on to is less as environmental perspective new is whole. quarterly civil Systems. solutions in accounts and existing fast complete -- Nicholas, than expand 'XX and which comprehensive of still more XX% Zealand, a and operational based more already Sequent over from now for directions fast than now power New infrastructure, 'XX our Line mines is on to Sequent for geothermal growing resilience agenda developments, greater now where these modeling on

of The resource X There CEO I relevant organized mind. is Greg. gap were engineer ago, weeks by you, attended engineering for Summit capacity AEC for advisers. takeaways top a top firms indeed Thank conversation. Two this

recognize support problems. ensure address world's climate economic security is key their biggest Infrastructure to growth, role energy firms the in change. solving First, and

do to are this solutions. firms work, looking and cannot they Second, important engineers enough find for

efficiency CEO Software a firm as a engineering how This conversation. drive during great X summary panel our will is of current conditions. they is said market

The remain sector to investments utilities. we above and the works sectors. case line in Infrastructure infrastructure AR AR Sequent QX. expected. large was The public be world, from Let's broadly once with in this again by with mining with remained growth led resources growth come. the continues and start to benefit performed to years average. as around business core in for expect company its trends

funding less available quarter, projects. exploration see new As to we discussed finance last

mining the be margin companies pressure. to when through chain However, efficient is mining Sequent is value used help and well under positioned more

remained after EPCs Industrial on particular of softened energy in focused The somewhat, rapid sector Southeast and commercial quarters Asia, with in expansion. projects growth and flat. in India AR many facilities

regions. the U.S. strong led from momentum federal IGA performed on America more of being Moving state greater variety money by Americas a to infrastructure in on well spent again North and the once with given our departments of with transportation.

rate with of the departments more that public outsource year-over-year. All has projects given engineering their by work funding growth these water XX% ecosystem and services EMEA's for Our increasingly benefit firms. growth to continued from energy. DOTs increased across transportation, to impressive

Some finalized infrastructure. at were projects of end these the

their their environment also are strong in who are growing home broader due We demand reach the expanding region. outside country the with to engineering firms

broader strong India. preference perpetual licenses. continued Departments down region, of be performance. In in the the Transportation Returning Asia growth growth to given for water In to the Pacific, China and were Australia weigh continued the AR to the U.S. there transportation main drivers

in We help with in digital the to both across ecosystems. are secure and ways, partnering help going respective them funding DOTs new their them

squarely of streams available are advantage implementation the take are X increased of. for year funding We DOTs and and new to in IGA's

exciting software create these for drive For will year resource advanced help which to grants efforts DOTs strengthen Despite grants, XX as construction next awarded. fund digital systems engineering momentum which them are efficiency. the these our get management constraints, federal us by departments example, for impacted We we the apply help funding, believe also new capacity an can opportunity helped purchases.

digital streamlined partnered [indiscernible], of including U.S. we across to organization value nonprofit example, chain, construction support all state For with delivery to DOTs their a design processes.

increasing and about a trusted are as our Overall, we excited the partner. opportunities DOTs expanding the with role

the engineering We main civil the quarter. had products, our Regarding in noticeable and are Road drivers with Open Open growth growth with previous also applications, line bridge.

open PLS world. [ application, ] application becoming modeling with a as continued Taba is for which Our well infrastructure Saks flows electrical seen the engineering water success structures. structural our also as transmission around for We've product go-to water

XXXX mentioned, year was Greg Intelligence. groundbreaking As a for Infrastructure

data by going leveraging -- of We in digital performance asset delivery exemplified made by as is impressed the data improve have by infrastructure obvious digital been progress project wins the organizations awards and foundation the the blocks. to intelligence, infrastructure of If finalist. building

to enable opportunities and in to and and in infrastructure it asset When to will AI ago. think This in to rework the time, digital intelligence. platform use CEOs effectiveness for cycle. about X our it cycle. intelligence, across unlock evaluate more significant are data twin iTwin. changes the to intelligence firm life engineering portfolio systematic significantly role the FARS top accelerate with product-wise, weeks play twins of open infrastructure the an across users including data with I resulting by at bringing part They real Infrastructure year errors, increase announced reduced delivery leverage that operational iTwin next about life of improving reuse enrich year, digital we launched that be artificial engineers. faster. entire impact of Because was to mobilize important Digital analyzed, last injury power the seamlessly of from project better we that starting are for enterprise of exponentially, used of the talk year, and infrastructure we release design use of so We, course, can performance. cloud, in infrastructure projects seek This was met can badly MicroStation, designs twins the applications, mind the we're product in phase infrastructure topic twins, At the of AI efficiency and pending digital collaborate the we and in infrastructure of evolving our to

replace routine infrastructure AI a AI generative for use the for generating I with empower beginning presented Bentley for will to time-consuming generative we AI. on software engineering code, engineers documentation, automated tasks Consider cycle. As focus for AI test already projects. activities. an AI or our on designs assists assist own Infrastructure, mentioned generative their We We phase and we take basic development monitoring, approach last from the infrastructure on a site potential with previous AI data layout new agent tool use copilot quarter, engineers design envision copilot, generative which that by engineers further to is optimizing during design software AI to not our can our leveraging during GitHub comparable infrastructure in and see believe life and and of in more. process not At huge infrastructure so higher-value asset We can engineers engineers. the by cases that mundane

how engineers time We can the with AI by spent on improve production of showed Capabilities essential this and gap. minimize their like generative experience, automating can light to being overall resource be and engineering notations. documentation productivity work drawing also applied capacity fit-for-purpose chronic both in

explicit Of GTI responsibility to at have course, their We And approach need users a to to data. data. models, our yearend about to our stewardship our be train very you data we to infrastructure. commitment presented

committed potential retain and users infrastructure value secure all we bed they including are help generative that derive are also data our it. access control they AI to clear the even in we While more over engineering its for maximizing cloud, from

how to last One Our data, data use stop. train AI They their to always. users their is it get decide for benefit. to

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Nicolas. you, Thank

with Subscription currency. quarter in or Year-to-date, a $XXX constant subscription total basis. and grew XX% up basis. grew were Total on third for on quarter. We constant Year-to-date total are XX% grew XX% strong the the another a and constant currency in million, revenues revenues our revenues XX% currency year-over-year for year-over-year revenues represented XX% XX% of reported currency pleased quarter constant or revenues. XX% and reported

of The the end onboarding XXXX Systems this and percentage at for improvement. X.X year-to-date January of Power of accounts point approximately

Our XX% currency revenue license certainly and revenues, our the differentiator, solid as a they to license only to constant to relative attract for growth. perpetual us more on sales new revenues, preferences. Even Year-to-date, total This up our China to XX% and true SMB to license small recurring though Perpetual to X% be remain grew continue currency. make subscription or 'XX likely of did grew EXXX initiatives X% it third local contributors in revenues competitive basis. particularly due constant helping us quarter revenues reported and to become and will serve QX. a as is logos are significant and in that SMB for they in perpetual

the or from for Year-to-date, grew within we benefited services professional XX services group integrated of X% and revenues the quarter. digital remained flat currency in in QX. revenues cohesive acquired Our acquisition constant essentially which X% our Vitasi,

revenue Moving on recurring to our performance.

XX or year-over-year point. by by currency. The XX% acquisition XX% & in constant about Our months Systems contributed last percentage revenues increased recurring Power X of

of currency down XX last mid-XXXX. to XX%. constant a as result XX% from rounded account exiting months And Our rate Russia retention

at ARR at rates. recurring of revenues, QX with and currency end by retention rate led constant within quarter our Our $X.XXX EXXX million consumption-based We XXX%, ended accretion spot model. commercial net continued remained

in with facilities Nicolas, quarter, commercial by resources previous line growth just growth overall public infrastructure and by and remained above softened sectors remain the utilities, company Industrial trends discussed led flat. rugs our As broadly and performed somewhat ARR the by

year-over-year and a contributors. initiatives XX-month was a trailing ARPU and key remain sequential currency SMB basis. basis, our rate quarterly the X.X% EXXX on growth growth On XX.X% Our constant

QX the impacted to quarter's last 'XX week current when by negatively compared consumption-based third EXXX was to revenues, annualization on based and consumption year historic When compared X of less the times our is the This which X. day. quarter seasonality, impacted

has to the from of in impact number full elsewhere proportion China impacted ARR the growth XXXX full the this no preference and continued year As anomaly historic on QX perpetual our year full The to But will but also have same year licenses. and ARR be the calendar be XX fourth when our XXXX compared there, also caused slightly SMB seasonality. week and this for quarter there growth. days, to was headwinds in a lower by in greater quarter

the renewal represents quarter As our thereby growth QX opportunity. biggest of year with and biggest quarter contract a reminder, us remains for the ARR the

Our operating for was GAAP million income the third and quarter $XXX $XX million year-to-date.

our on deferred amortization We GAAP from intangibles, revaluations of have previously and explained the plan results acquisition purchased compensation expenses. impact liability operating

focus profitability XX% QX, operating XX.X%, or $XX adjusted margin year. operating Adjusted to compensation quarter, $XXX million, on working was incremental OpEx full performance of strong or $XX measures million benefited by operating up income or respect activities and IT In expense relatively mainly cash up XX%. million our cash We a associated track approximately Year-to-date, costs up on margin stock-based income with stock-based margin flow expect Moving was deliver expense $XX XXX capital with QX, our basis with QX, compensation increased year-to-date, compensation with compared basis as up million to for our With of QX timing. with operating with system a see and was points. the a of million and our flows starting from adjusted on $XXX stock-based primary margin million $XX XX%, system. XX%. up well liquidity, an for XXX this million to was us. expense $XX ERP to outlook income caused margin as year-over-year. our management, to operating year year-to-date XX.X%, on we for remain points. implementation quarter promotional The higher

flow year's approximately this at expect the convert up to from to these from cash previous EBITDA XX%. estimate XX%, XX% to of Due rate of our adjusted operations we factors, from

growth to period. we dilution of flow approximately to million be XX-month cash previously Year-to-date produces a our conversion over trailing cash to reliable from about QX, As defect providing on repurchases debt. million XX% from timing. through initiatives, spent between and repaid we in our million for operations Prospectively, dividends. our we some with compensation, trailing along sufficiently $XXX will model offset quarters efficient stock-based estimated of $XX due adjusted XX-month $XX bank rate over business future and discussed, EBITDA paid flows but We with share variability and period. or

our end leverage the and debt our our QX, and senior was of step, leverage was X.Xx, XXXX net full of As including year XXXX debt notes net X.Xx. convertible

comfortable are structure with We very capital stands our today. it as

programmatic continued quarter, over strong We X.Xx our expect over sheet strong generation strength and With swap adjusted delever EBITDA delevering our $XXX our flow this a interest free from deleveraging perspective, approximately this our on to for while debt coupon is the convertible since or to protected profile, and And X from dividend period. our rates debt no low stock-based trajectory offset rates all dilution rate of to XX% interest from years exposure increase million next our beginning of repurchases cadence, rising balance the maturing year. share interest in we cash the maintaining and organically expiring M&A notes our very compensation. XXXX. our either fixed

message with are we maturity rate we to exposure. conditions comfortable current very So evaluate ways and optimize course, change. continually the But profile key leverage, interest of is as our

exchange will exchange assumed the the approximately throughout rates relative our exchange on are rates, of $X QX Based on recent remainder the considerations we incremental exchange outlook, the million year-to-date $X with negatively the approximately Thank outlook. as year-to-date in outlook, operations, strength, not prevail QX, our basis, financial dollar a most I for assumed XXXX would changing this Given increasing has year's the to are from think resulting by in cash our financial ready strong and to rates impacted of flow for we revenues if foreign financial from except that, you are annual XXXX of Q&A. for our weakened currency. year, mentioned Eric. U.S. rates our With USD Over before. And revenues the million range regards GAAP we to to October in end relative be

yourself Thanks, that Werner. get everyone's to In today, order to questions limit one. ask we to just you

first RBC. comes Our from Hedberg from question Matthew

were was on the maybe Thanks is of like if call. of too outlook with growth about is that Are of kind building investors things year, you're lot some it for are I just early blocks major excited next joint curious, a to of ramping. there helping kind I all some commentary know there's it of about think consistent kind including year. -- the of of that sounds the it's I a major trends, the of with kind wondering us this next about consistent kind year, venture you for China kind 'XX? but of particularly probably

sort of about think kind next any certainly of be you Just can helpful. help would year

fourth which first happens view X/X especially renews. course, the after fourth And on inform quarter just there is our our it's for the in of almost And the quarter EXXX, of negotiations about next floors now. consume are to even our fourth quarter. Well, year. going after been that of the quarter caps the quarter we're in we'll us have annual -- guidance ARR outlook and

at is not large and of volatile, business our do. we is there what considerable visibility next generally, But in year, that thinking

grid is year been I It's next things a proves mining about there Now excited that that this new suppose the to for now has ] water also minority [ even be a the what and downturn, in do include year exception of IIJA. in continued exploration, which we has of funding. but expansion is rule it mining,

that be happen. on. to but much of so favor is That excuse China, the Things more things new there be think, also of continue perpetual to business in needs Now are will those China, about. yet happens that excited happen, in we improvements, ventures grid have are are licenses. permanent. But we in during continue complicated to it's it ARR for -- the to year, sometimes significantly, have are now to accretion me, the And EXXX But fourth to coming joint slowly coming quarter.

not ARR to have upon. year, all it's new ever. going which looking so is now in to maybe new and going more we're be It doesn't at very have that depend momentum that that balance and change next we But generally, than to favorable out that we most subscriptions. So is rather to fast business factor

question Next comes from Baird from Joe Robert Brewing

Great. Can you me? hear

Yes.

sure across of would B And on a network normal Two ARR be want this performance and usage application I related I the quarter. then part you in quarter's have applied working questions retention amount of days? to make growth if right. the you ARR of rates just where sense heard Do question, a this

remained It outside to growth highs. like softened relative industrial markets ARR sounds the China year-to-date maybe at of So trend.

is interpretation sequentially? improved and Americas correct a bit works So the the public that actually

the to way. for program. quarter is that hand, life Those very And very usage which -- a on a EXXX And project project EPCs the not largest calculation interpretation. to think to projects back as that, lines, creates this on always simple counted been the are quite has single and maybe is large sensitive and isn't phenomenon. in large questions charge production-oriented there to explain, go very are especially correct already that usage is under dollar our been to one to that your I It's calendar on industrial. any answer days.

at we way. there count. And have a applications, the binding asset come ban. contracts calendar are cause into the of in some and then Asset are play caps can dynamic where wise, it's And is lot on then the in and based point in And pricing the that usage-based floors to caps for volatility floors a even any time.

for contracting so forth. that we and So do government

last without quite say So change in a and have having you day fewer as didn't the we then having for in the been perpetual the could in might without all without for the our of reasons, that attrition instead, X than quarter. we ARR in it isn't be. X have can simple If But think the there calculation, that China. things, bulge year without usual wouldn't they've a -- licenses mix indicated any reduction these those it growth been as

Thanks, Greg.

Oppenheimer. comes question Next from from Owen Kristen

owner operators wanted versus with specifically this that project. I and think of owners a about the how or cycle. increased for penetration should about asset-wise ask sort the CapEx the BP the asset as announcement, migration we blueprint to

revenue the that opportunity, moderate help of and the Just of us remote development type sources recurring unpack agreement. asset

that for assets. its history had the is access, cycle operations how to the you right, it Imagine engineering right. get over life in think information important I exactly of BP the

engineering information I has huge that It enabled and very asset-wise be smart people decisions their can a CapEx, program and unique during reliability and schema use smart really a to that their over would both made asset-wise about model management model a share is inspection unique system very say, their have to they and scientists agreed have it forth. for very CapEx data this and for, time. and good data that on a extended to So approach And they long-term and so and to really is data operations. they in corrosion

anyone the think to I elsewhere. more it's important not have have we in have, than as know, BP. do they industrial, footprint you And we

that engineering the but call So forth. I information so intelligence think BP the industrials I is is it's respective infrastructure not is a that a that, down earth and reliability, with Generally, and and leading for application public of model. seeing in of utilities, what way really we throughout ahead safety, you're important the using It's are a and really BP propounded to this uptime enhancement. is only works BP that think that now

from from Jason KeyBanc. Celino comes question next The

Guys, me same can or hear you

Yes.

Yes. Perfect.

Asco? or that is with has I competitors tell with think your about revenue pretty us studies about it the influence? vocal been is you doing partnerships a, Or of can opportunity? been more and there Nicholas, partnership about different DOTs any they've One Greg this

to life system delivery, a for forward. and cycle we X to that flowing design the roads, integration with our construction, infrastructure next. As U.S. it is the from beyond the to is DOTs a of the from freely software as wear, we're which digital as The opportunity to And they goes enable product-wise, see call by all order to meaning growth with them data study From about because in true a is exciting phase -- from all in to usually nonprofit -- doing Infotech. managed big organization another, that to open partnership software which working from a actually from with of from Betley as is wear, X Syncro going

and the in when very strong DOTs the are construction going across into design We embracing particular, to design, comes construction. with it we're as delivery digital

on bearing have will most projects. This a

Funk Michael from comes America. question of Bank from Next

with button Yes, apologize. the I come I to mute there.

starting some the mentioned a So funding you Greg, IJA, [ ] bit of about through. to flow

projects I related spoke potential you do the areas uplift of area. But different those much amount do could the done iTwins you think for in funds you in call. during to from XXXX and the ARR then months? projects, now And us you've a relative in the at believe mentioned to coming strength, XXXX. that not water there. specifically, appreciate potential XX on obviously, you the help quantify this X you I a iTwins and feel -- lot you online modeling on commentary lift where have in about grid funding, still How ARR those provide can question, you based also permitting next

of slowing. It funding been flow X Well, increase. next It first on [ IIJA the and doesn't just years. ] the continues transportation course, X for , had to

has other The do put to for some complete, still be water to it of begun need in of permitting place, it don't miss, permits had subject, and but it's hit but money grid, programs finally to you for capacity. transmission not for new however, but also is kind -- just a that's

is happen. that yet to So

don't generally, that time. I will predict for done spent everything that that paper But don't I a there in that's same but And what's grid, lot. to over required grid mean globally quarter multiply. -- will opportunity, can good double transmission estimates has a that reason it is Association I that at say time needs distribution it As the the past to electrification. necessarily our Energy far especially to International that on grow constraints as to the the the say accomplish know opportunity period capacity a during double, of quantifying is and the

right continued So a that in saw and America. ramp be in direction, so it believe far the we North I will this year quarter and

For Nicholas. let ask iTwin, me

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Our comes from next question Broome from Matthew Zoho.

All right. everyone.

on customer Greg, conversations, recent results. based in months found their their pain what sentiment mentioned main maybe talk your you survey positive Could you on you So how about points? are concerns

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at demand for designing, capacity. there is same [indiscernible] top are It the constrained infrastructure world's by infrastructure? couple many the made but it resource that of of very from engineering the ago the and problems By top delivering terms they important how of role, address in in in a mind time, And to Arizona. the CEO how is building, engineering much way, on the the is heard way, of their weeks of side, how much we so we

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The question comes Research Josh from next Tilton Joshua from Wolfe

hear you can guys, You me?

Yes.

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from year than it just the infrastructure to be you fair it the that to greater tailwind more is, because growth is will So have the assume this projects. year next question bill was

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capacity. its sense to no it And of there I of sector. is that aspect help forth, have a costs in way, sunk infrastructure have to and makes in the of There's with need mines the existing lot don't economic demand so again, can't because the talk the private do consumption we to that, lack is and new tilt thing run that. little for by full mention of go at terms trend other we days But where a industrial of it holidays that, The quarter India, that, even about in which, might funding QX. respect and a also I'll during the of hand, on and do had the think that's having the -- they I full with to where we number pronounced gotten say that are softer. more more

a not necessarily. calling trend yet we're that So

things threats it's make would It money are interesting, than when well China, Something to license with out that's anxiety deals can are we some the they while be rates upfront possible and ever to perpetual probably higher, leading isn't different license. In is lay under quite how it, continued is purchasing to for of deals let's we've want licenses perpetual a does before perhaps geopolitical could future monitoring afraid take buy interest perpetual going is businesses because chance say, and don't sense I'm very fund concern subscriptions a it bigger there economic phenomenon. sanctions. seen conditions become about with interest apparently to where some that Well, and behavior say, preference rates, anecdotally do but SMB

in in world complicated respect. that a it's So that

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from Griffin Warren from Meyers Securities. Next question comes

for you, me. now? having Thank for Can guys, me obviously you I'm hear in Jay.

multi-part to here. a of the potential margins those or Just in respect announced one of a recent revenues terms question XXXX you solutions and product industry multiple you and/or with How quick materiality rank infrastructure services, in conference. beyond, to kind at would your

I'm going to it. ahead, to go ahead. Go part another you ask had -- I'm sorry,

No, no. That's basically it.

this help our that quantify, of the willing opportunity for is maintenance. I'm ask is Well, and but to to Nicolas doing notion operations bulk

AI value. is of intelligence the one the what is value analytics And generally. where in to questions the infrastructure compounding referred doing. for for opportunity So economic and earlier BP the That occurs that

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go So Nicholas. ahead,

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industry these most solutions are infrastructure focused around part, more themselves. For assets on the giving intelligence

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Rosenblatt question comes Securities. from Blair from Abernethy Our next

Thank you. morning. get button to there. off Good trying the mute

see design this way considering? And can a that? word or or monetization increase is X yourselves this productivity and comments a first stage preproduction maybe the sort of timing this a or -- of follow the private at sort market. sense Is Where to X this Just concept a copilots Just of are so of the you or when of the do you up kind what's design wanted are previews Nicholas' in to infrastructure you year schemes out? on us implementing engineers. some give What partially help -- of this? in as you of of see for

also links, also what's just we've network. comes to for capabilities explained, We AI is the when years now, a around it the made going couple detect are AI had transportation which already in asset on which as there leveraging to I order of operations, with acquisition of

in about absolutely to stage are when design This is AI overall. helping an potential of the engineers early the very We as phase. excited comes it industry

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over leveraging are be really own prepared Our ] much all the the engineers in as can I they Geppetto, Monday intact on productive. focus remarks, tasks. [ to taking so high-value more is [indiscernible] explained

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instance, point will Project-wise and largest firms Blair, I ways on understood it recognize in own indirectly monetization, data common they and state anticipate the single a even more and has owners their advantage And comprehensively value didn't this which for product compound understood training our AI in Generative could the future, is value the engineering with out in when of valuable. project-wise the tools. just become be come where of now. can schema for

whether So there monetization. on as are value products the implicitly or how would ways working without new out enhanced there to yet for monetize products entering -- as far us the data be of

Our Jeffries question Clarke comes from from Sandler. Piper next

Hello -- you. good see to

positive to of the the construction So memories maybe some before. of reflect I being at that I think stage. follow prior and I a some there there on been question up think shovel-ready of And wanted civil that are projects discussion has

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the last of you in However, get we're just that, a in we to infrastructure point and of watch leads Asia, which reminded much back in month, are in from chance Singapore, keynotes. a case some the in so year-end that if world,

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see in that Asia. all you'll Synchro. projects why And I winning digital projects of XX% see a XXX-plus these So and think remarked going that that pleasant year, this award finalists it's some surprise we of to that's me, to nominated of examples use

process civil XD incorporating incorporated progress modeling improve and the and construction design, out an X just risk the they're of design and during to and of even it's ultimately indication project the variability. build execution of So constructability take

progress of you That and quarters. today. We your in look for and each updating call concludes our our forward you in to thank Systems time coming Bently interest on

you. Thank