EXTON, Pa. - Infrastructure engineering software company Bentley Systems, Incorporated (NASDAQ:BSY) has announced the acquisition of 3D geospatial company Cesium, a move that aims to enhance Bentley's iTwin platform by integrating Cesium's robust 3D geospatial data capabilities. The financial terms of the deal were not disclosed.
Cesium, known for its open platform that supports the creation of 3D geospatial applications, brings to Bentley Systems a SaaS platform, Cesium ion, which reaches over 1 million active devices monthly. Cesium's open-source offerings have been downloaded more than 10 million times, signaling the platform's wide adoption across various industries.
The combination of Cesium's technology with Bentley's iTwin platform 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.
Nicholas Cumins, CEO of Bentley Systems, highlighted the value of 3D geospatial context in making informed decisions about infrastructure assets. Patrick Cozzi, CEO of Cesium, expressed enthusiasm for the growth and value the acquisition will bring to the developer ecosystem.
Komatsu (OTC:KMTUY) Ltd., a leading construction equipment manufacturer, has been utilizing Cesium's technology to monitor construction sites and make data-driven construction decisions. With the acquisition, Komatsu anticipates further enriching its digital twins with additional engineering and subsurface data.
Cesium's commitment to open standards, such as the 3D Tiles for visualizing 3D geospatial data, aligns with Bentley's strategy. The Open Geospatial Consortium (OGC) adopted 3D Tiles as a community standard in 2019, reflecting the industry's move towards data-centric approaches.
Following the acquisition, Patrick Cozzi has been appointed as Bentley's chief platform officer, leading the development of the combined platform offerings.
This strategic acquisition is based on a press release statement and aims to strengthen Bentley Systems' position in the infrastructure engineering software market by leveraging Cesium's 3D geospatial technology.
In other recent news, Bentley Systems, Incorporated reported a robust Q2 performance for 2024, showcasing an 11% annual recurring revenue (ARR) growth and significant increases in recurring subscription revenues. Despite facing 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.
The company's strong performance was particularly noticeable in the Americas, with North America showing the fastest growth due to increased infrastructure spending. However, total revenues are trending below the midpoint due to delays in implementation and upgrade work. The company is investing in AI-based asset analytics solutions and exploring AI in design to capture value from efficiency gains.
As part of its 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
As Bentley Systems (NASDAQ:BSY) embraces the acquisition of Cesium to bolster its iTwin platform, the financial health and market performance of Bentley offer a compelling backdrop to this strategic move. Bentley's impressive gross profit margin, which stood at 80.36% in the last twelve months as of Q2 2024, underscores the company's ability to efficiently manage its cost of goods sold and maintain profitability—a positive indicator for stakeholders considering the integration of Cesium's technology.
InvestingPro data indicates a robust revenue growth rate of 10.19% over the last twelve months as of Q2 2024, along with a quarterly revenue growth of 11.32% in Q2 2024. This suggests that Bentley is not only expanding its financial base but is also showing a strong upward trajectory in its market performance. Furthermore, analysts have set a fair value estimate for Bentley's stock at 60.5 USD, which is a significant premium over the previous close price of 48.64 USD, reflecting the potential upside seen by market experts.
Among the InvestingPro Tips, it's worth noting that despite the company trading at a high earnings multiple with a P/E ratio of 40.69, Bentley is also trading at a low P/E ratio relative to near-term earnings growth, indicating that its earnings potential may not be fully reflected in the current stock price. This combination of a strong profit margin and revenue growth, along with the valuation multiples, suggests that Bentley's stock may be an attractive option for investors looking for growth opportunities in the software sector.
For readers interested in a deeper dive into Bentley's financials and market performance, InvestingPro offers additional insights and tips, with a total of 10 more InvestingPro Tips available for Bentley Systems at https://www.investing.com/pro/BSY.
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