Bentley Systems Announces First Quarter 2021 Operating Results

Further information on factors which may cause actual results to differ materially from current expectations include, but are not limited, those described under the heading “Risk Factors” in the Company’s 2020 Annual Report on Form 10-K, and the Company’s subsequent filings with the SEC. Copies of each filing may be obtained from the Company or the SEC on their respective websites. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

About Bentley Systems

Bentley Systems (Nasdaq: BSY) is the infrastructure engineering software company. We provide innovative software to advance the world’s infrastructure – sustaining both the global economy and environment. Our industry-leading software solutions are used by professionals, and organizations of every size, for the design, construction, and operations of roads and bridges, rail and transit, water and wastewater, public works and utilities, buildings and campuses, and industrial facilities. Our offerings include MicroStation-based applications for modeling and simulation, ProjectWise for project delivery, AssetWise for asset and network performance, and the iTwin platform for infrastructure digital twins. Bentley Systems employs more than 4,000 colleagues and generates annual revenues of more than $800 million in 172 countries. www.bentley.com.

© 2021 Bentley Systems, Incorporated. Bentley, the Bentley logo, AssetWise, INRO, iTwin, MicroStation, ProjectWise, and Vista Data Vision are either registered or unregistered trademarks or service marks of Bentley Systems, Incorporated or one of its direct or indirect wholly owned subsidiaries. sensemetrics is a registered trademark of sensemetrics Inc. All other brands and product names are trademarks of their respective owners.

BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
(unaudited)

	March 31, 2021			December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	569,536		$	122,006
Accounts receivable		189,530			195,782
Allowance for doubtful accounts		(6,370	)		(5,759	)
Prepaid income taxes		3,994			3,535
Prepaid and other current assets		25,118			24,694
Total current assets		781,808			340,258
Property and equipment, net		27,767			28,414
Operating lease right-of-use assets		41,691			46,128
Intangible assets, net		53,697			45,627
Goodwill		622,756			581,174
Investments		5,245			5,691
Deferred income taxes		42,133			39,224
Other assets		51,771			39,519
Total assets	$	1,626,868		$	1,126,035
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	15,947		$	16,492
Accruals and other current liabilities		296,497			226,793
Deferred revenues		186,396			202,294
Operating lease liabilities		15,894			16,610
Income taxes payable		11,721			3,366
Total current liabilities		526,455			465,555
Long-term debt		672,599			246,000
Long-term operating lease liabilities		27,861			31,767
Deferred revenues		7,108			7,020
Deferred income taxes		14,305			10,849
Income taxes payable		7,883			7,883
Other liabilities		16,660			15,362
Total liabilities		1,272,871			784,436
Stockholders’ equity:
Common stock		2,737			2,722
Additional paid-in capital		732,635			741,113
Accumulated other comprehensive loss		(35,394	)		(26,233	)
Accumulated deficit		(345,981	)		(376,003	)
Total stockholders’ equity		353,997			341,599
Total liabilities and stockholders’ equity	$	1,626,868		$	1,126,035

BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)

	Three Months Ended
	March 31,
	2021			2020
Revenues:
Subscriptions	$	188,125		$	170,182
Perpetual licenses		10,116			10,814
Subscriptions and licenses		198,241			180,996
Services		23,764			13,694
Total revenues		222,005			194,690
Cost of revenues:
Cost of subscriptions and licenses		28,945			21,327
Cost of services		20,344			15,932
Total cost of revenues		49,289			37,259
Gross profit		172,716			157,431
Operating expenses:
Research and development		47,803			45,135
Selling and marketing		32,440			36,095
General and administrative		33,388			26,804
Amortization of purchased intangibles		3,438			3,436
Total operating expenses		117,069			111,470
Income from operations		55,647			45,961
Interest expense, net		(2,319	)		(1,388	)
Other income (expense), net		14,482			(7,390	)
Income before income taxes		67,810			37,183
Provision for income taxes		(10,358	)		(7,176	)
Loss from investment accounted for using the equity method, net of tax		(446	)		(338	)
Net income		57,006			29,669
Less: Net income attributable to participating securities		—			—
Net income attributable to Class A and Class B common stockholders	$	57,006		$	29,669
Per share information:
Net income per share, basic	$	0.19		$	0.10
Net income per share, diluted	$	0.18		$	0.10
Weighted average shares, basic		302,583,452			285,486,972
Weighted average shares, diluted		321,736,649			292,378,627

BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Three Months Ended
	March 31,
	2021			2020
Cash flows from operating activities:
Net income	$	57,006		$	29,669
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,993			8,050
Bad debt allowance (recovery)		746			(256	)
Deferred income taxes		966			1,742
Deferred compensation plan activity		1,021			676
Stock-based compensation expense		8,913			1,653
Amortization and write-off of deferred debt issuance costs		1,229			138
Change in fair value of derivative		(13,661	)		—
Change in fair value of contingent consideration		—			(1,390	)
Foreign currency remeasurement (gain) loss		(583	)		6,985
Loss from investment accounted for using the equity method, net of tax		446			338
Changes in assets and liabilities, net of effect from acquisitions:
Accounts receivable		14,903			38,273
Prepaid and other assets		8,257			5,653
Accounts payable, accruals and other liabilities		54,977			6,778
Deferred revenues		(21,889	)		(28,247	)
Income taxes payable		11,474			2,550
Net cash provided by operating activities		132,798			72,612
Cash flows from investing activities:
Purchases of property and equipment and investment in capitalized software		(2,655	)		(4,500	)
Acquisitions, net of cash acquired of $1,326 and $1,986, respectively		(57,975	)		(39,329	)
Other investing activities		—			(1,414	)
Net cash used in investing activities		(60,630	)		(45,243	)
Cash flows from financing activities:
Proceeds from credit facilities		16,000			58,907
Payments of credit facilities		(262,000	)		(133,625	)
Proceeds from convertible senior notes, net of discounts and commissions		672,750			—
Payments of debt issuance costs		(3,777	)		—
Purchase of capped call options		(25,530	)		—
Payments of financing leases		(50	)		(47	)
Payments of acquisition debt and other consideration		(25	)		(127	)
Payments of dividends		(8,219	)		(7,802	)
Payments for shares acquired including shares withheld for taxes		(18,763	)		(3,918	)
Proceeds from exercise of stock options		1,751			724
Net cash provided by (used in) financing activities		372,137			(85,888	)
Effect of exchange rate changes on cash and cash equivalents		3,225			(2,293	)
Increase (decrease) in cash and cash equivalents		447,530			(60,812	)
Cash and cash equivalents, beginning of year		122,006			121,101
Cash and cash equivalents, end of period	$	569,536		$	60,289

BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Measures
For the Three Months Ended March 31, 2021 and 2020
(in thousands)
(unaudited)

Reconciliation of net income to Adjusted EBITDA:

	Three Months Ended
	March 31,
	2021			2020
Net income	$	57,006		$	29,669
Interest expense, net	2,319			1,388
Provision for income taxes	10,358			7,176
Depreciation and amortization	8,993			8,050
Stock-based compensation	8,913			1,653
Acquisition expenses	9,256			2,275
Realignment expenses	—			(8		)
Other (income) expense, net	(14,482		)	7,390
Loss from investment accounted for using the equity method, net of tax	446			338
Adjusted EBITDA	$	82,809		$	57,931

Reconciliation of net income to Adjusted Net Income:

	Three Months Ended
	March 31,
	2021			2020
Net income	$	57,006		$	29,669
Non-GAAP adjustments, prior to income taxes:
Amortization of purchased intangibles and developed technologies	4,683			4,539
Stock-based compensation	8,913			1,653
Acquisition expenses	9,256			2,275
Realignment expenses	—			(8		)
Other (income) expense, net	(14,482		)	7,390
Total non-GAAP adjustments, prior to income taxes	8,370			15,849
Income tax effect of non-GAAP adjustments	(1,818		)	(2,700		)
Loss from investment accounted for using the equity method, net of tax	446			338
Adjusted Net Income	$	64,004		$	43,156

Reconciliation of GAAP Financial Statement Line Items to Non-GAAP Adjusted Financial Statement Line Items:

	Three Months Ended
	March 31,
	2021			2020
Cost of subscriptions and licenses	$	28,945		$	21,327
Amortization of purchased intangibles and developed technologies		(1,245	)		(1,103	)
Stock-based compensation		(86	)		(28	)
Adjusted cost of subscriptions and licenses	$	27,614		$	20,196

Cost of services	$	20,344		$	15,932
Stock-based compensation		(235	)		(96	)
Acquisition expenses		(966	)		(20	)
Adjusted cost of services	$	19,143		$	15,816

Research and development	$	47,803		$	45,135
Stock-based compensation		(3,909	)		(619	)
Acquisition expenses		(1,374	)		(1,250	)
Realignment expenses		—			8
Adjusted research and development	$	42,520		$	43,274

Selling and marketing	$	32,440		$	36,095
Stock-based compensation		(690	)		(400	)
Acquisition expenses		(44	)		(77	)
Adjusted selling and marketing	$	31,706		$	35,618

General and administrative	$	33,388		$	26,804
Stock-based compensation		(3,993	)		(510	)
Acquisition expenses		(6,860	)		(812	)
Adjusted general and administrative	$	22,535		$	25,482

Income from operations	$	55,647		$	45,961
Amortization of purchased intangibles and developed technologies		4,683			4,539
Stock-based compensation		8,913			1,653
Acquisition expenses		9,256			2,275
Realignment expenses		—			(8	)
Adjusted income from operations	$	78,499		$	54,420

« Previous Page 1 | 2 | 3 | 4 Next Page »