Bentley Systems partners with Google for geospatial tech

VANCOUVER, British Columbia - Bentley Systems, Incorporated (NASDAQ:BSY), a leading infrastructure engineering software company, has announced a strategic partnership with tech giant Google (NASDAQ:GOOGL). This alliance aims to enhance the infrastructure design and operation by integrating Google's geospatial data into Bentley's software and digital twin platform.

The collaboration will allow users of Bentley's software and developers to utilize Google Maps Platform's geospatial content, including Photorealistic 3D Tiles, providing real-world context and immersive 3D experiences within their digital workflows. This integration is expected to offer actionable insights for infrastructure professionals, potentially improving resilience and sustainability in project planning, design, construction, and asset operation.

The partnership also includes the use of Google's artificial intelligence (AI) and analytics, as well as cloud technologies, which, when combined with Bentley’s infrastructure engineering software, could address critical challenges such as climate risk mitigation and maintenance of aging infrastructure.

Nicholas Cumins, CEO of Bentley, highlighted the benefits of combining Google's extensive geospatial content and cloud capabilities with Bentley's digital twin platform. He emphasized that open standards like 3D Tiles can evolve infrastructure practices by leveraging geospatial context.

Chris Phillips, vice president and general manager of Geo at Google, expressed excitement over the partnership, noting the transformative potential of Photorealistic 3D Tiles for architects, engineers, and urban planners.

The partnership is also a follow-up to Bentley’s recent acquisition of Cesium, a platform known for creating 3D geospatial applications and the creator of the 3D Tiles open standard, which is used by Google.

Bentley Systems, with over 5,200 colleagues worldwide, supports the global economy and environment with its software solutions, which are used for a wide range of infrastructure projects. The company's annual revenues exceed $1 billion.

This strategic partnership is based on a press release statement and represents a significant step in leveraging geospatial technology for infrastructure development.

In other recent news, Bentley Systems, Incorporated has reported strong Q2 results for 2024, showcasing an 11% annual recurring revenue (ARR) growth and significant increases in recurring subscription revenues. Despite challenges in China and with its Cohesive digital integrated business, the company maintained strong profitability and cash flow. Bentley Systems also announced a third-quarter cash dividend of $0.06 per share for 2024, reflecting its financial health and commitment to shareholders.

In a strategic move, Bentley Systems recently acquired 3D geospatial company Cesium, aiming to enhance its iTwin platform by integrating Cesium's robust 3D geospatial data capabilities. This acquisition is expected to allow developers to align 3D geospatial data with subsurface, IoT, reality, and enterprise data, creating comprehensive digital twins from infrastructure networks to individual asset details. Post-acquisition, Patrick Cozzi, former CEO of Cesium, has been appointed as Bentley's chief platform officer.

In terms of future expectations, Bentley Systems anticipates ARR growth driven by E365 renewals, new logos in the SMB segment, and asset analytics deals. The company also plans to continue its adoption of digital twin technology across its portfolio. These are the recent developments within the company.

InvestingPro Insights

Bentley Systems' strategic partnership with Google aligns well with its strong financial position and growth trajectory. According to InvestingPro data, Bentley Systems boasts a market capitalization of $15.5 billion and has demonstrated impressive revenue growth, with a 10.19% increase over the last twelve months as of Q2 2024, reaching $1.29 billion. This growth trend is further supported by a quarterly revenue increase of 11.32% in Q2 2024.

The company's financial health is underscored by its remarkable gross profit margin of 80.36%, which an InvestingPro Tip identifies as "impressive gross profit margins." This high margin suggests that Bentley Systems has significant pricing power and efficiency in its operations, which could be further enhanced by the Google partnership.

Another InvestingPro Tip notes that Bentley Systems is "trading at a low P/E ratio relative to near-term earnings growth." With a P/E ratio of 41.05 and a PEG ratio of 0.31, the company appears to be attractively valued considering its growth prospects. This valuation could make Bentley an interesting proposition for investors looking to capitalize on the potential benefits of the Google collaboration.

InvestingPro offers 11 additional tips for Bentley Systems, providing investors with a comprehensive analysis of the company's financial position and market performance. These insights can be particularly valuable in assessing the potential impact of strategic moves like the Google partnership on Bentley's future growth and market position.

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