Bentley Systems (BSY) Reported the 13th Quarter of Double-Digit ARR Growth

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index’s 18.20% return. After a strong first quarter in 2025, investor enthusiasm shifted towards high-beta and AI stocks following the “Liberation Day” announcements, creating a narrow leadership group that posed challenges for the Mid Cap Strategy in the second quarter. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Bentley Systems, Incorporated (NASDAQ:BSY). Bentley Systems, Incorporated (NASDAQ:BSY) is an infrastructure engineering software solutions provider. The one-month return of Bentley Systems, Incorporated (NASDAQ:BSY) was 8.56%, and its shares gained 20.63% of their value over the last 52 weeks. On July 25, 2025, Bentley Systems, Incorporated (NASDAQ:BSY) stock closed at $58.59 per share, with a market capitalization of $17.775 billion.

Conestoga Capital Advisors stated the following regarding Bentley Systems, Incorporated (NASDAQ:BSY) in its second quarter 2025 investor letter:

“Bentley Systems, Incorporated (NASDAQ:BSY), a provider of infrastructure engineering software, outperformed the benchmark in 2Q, delivering its thirteenth consecutive quarter of double-digit annual recurring revenue growth (ARR). Management saw strength in Public Works, Utilities, and Small/Medium sized customers, as well as a resilient infrastructure spending environment, underpinned by the flow through in government funding (IIJA).”

Bentley Systems (BSY): Revolutionizing Geoscience Data with Seequent Evo

A computer engineer in front of his screen monitoring a 3D model of a building, representing the company’s open modeling and open simulation applications.

According to our database, 38 hedge fund portfolios held Bentley Systems, Incorporated (NASDAQ:BSY) at the end of the first quarter compared to 35 in the previous quarter. Bentley Systems, Incorporated (NASDAQ: BSY) reported total revenues of $371 million for the first quarter, representing a 10% increase compared to the previous year and an 11% rise on a constant currency basis. While we acknowledge the risk and potential of Bentley Systems, Incorporated (NASDAQ:BSY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Bentley Systems, Incorporated (NASDAQ:BSY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Bentley Systems, Incorporated (NASDAQ:BSY) and shared the list of AI news and ratings you probably missed. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.