Bentley Systems Announces 21Q4 and 2021 Operating Results, and

Bentley Systems Announces 21Q4 and 2021 Operating Results, and its 2022 Financial Outlook

Forward-Looking Statements

This press release includes forward-looking statements regarding the future results of operations and financial position, business strategy, and plans and objectives for future operations of Bentley Systems, Incorporated (the “Company,” “we,” “us,” and words of similar import). All such statements contained in this press release, other than statements of historical facts, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations, projections, and assumptions about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, and there are a significant number of factors that could cause actual results to differ materially from statements made in this press release including: current and potential future impacts of the COVID-19 pandemic on the global economy and our business, and consolidated financial statements; adverse changes in global economic and/or political conditions; political, economic, regulatory and public health and safety risks and uncertainties in the countries and regions in which we operate; failure to retain personnel necessary for the operation of our business or those that we acquire; changes in the industries in which our accounts operate; the competitive environment in which we operate; the quality of our products; our ability to develop and market new products to address our accounts’ rapidly changing technological needs; changes in capital markets and our ability to access financing on terms satisfactory to us or at all; and our ability to integrate acquired businesses successfully.

Further information on potential factors that could affect the financial results of the Company are included in the Company’s Form 10-K and subsequent Forms 10-Q, which are on file with the United States Securities and Exchange Commission. The Company disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

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, mining, and industrial facilities. Our offerings include MicroStation-based applications for modeling and simulation, ProjectWise for project delivery, AssetWise for asset and network performance, Seequent’s leading geoprofessional software portfolio, and the iTwin platform for infrastructure digital twins. Bentley Systems employs more than 4,500 colleagues and generates annual revenues of approximately $1 billion in 186 countries.

www.bentley.com

© 2022 Bentley Systems, Incorporated. Bentley, the Bentley logo, AssetWise, iTwin, MicroStation, ProjectWise, Seequent, and Power Line Systems are either registered or unregistered trademarks or service marks of Bentley Systems, Incorporated or one of its direct or indirect wholly owned subsidiaries. All other brands and product names are trademarks of their respective owners.

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

	December 31,
	2021			2020
Assets
Current assets:
Cash and cash equivalents	$	329,337		$	122,006
Accounts receivable		241,807			195,782
Allowance for doubtful accounts		(6,541	)		(5,759	)
Prepaid income taxes		16,880			3,535
Prepaid and other current assets		34,348			24,694
Total current assets		615,831			340,258
Property and equipment, net		31,823			28,414
Operating lease right-of-use assets		50,818			46,128
Intangible assets, net		245,834			45,627
Goodwill		1,588,477			581,174
Investments		6,438			5,691
Deferred income taxes		71,376			39,224
Other assets		48,646			39,519
Total assets	$	2,659,243		$	1,126,035
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	16,483		$	16,492
Accruals and other current liabilities		323,603			226,793
Deferred revenues		224,610			202,294
Operating lease liabilities		17,482			16,610
Income taxes payable		6,696			3,366
Current portion of long-term debt		5,000			—
Total current liabilities		593,874			465,555
Long-term debt		1,430,992			246,000
Deferred compensation plan liabilities		94,890			2,422
Long-term operating lease liabilities		35,274			31,767
Deferred revenues		7,983			7,020
Deferred income taxes		65,014			10,849
Income taxes payable		7,725			7,883
Other liabilities		14,269			12,940
Total liabilities		2,250,021			784,436
Stockholders’ equity:
Common stock		2,825			2,722
Additional paid-in capital		937,805			741,113
Accumulated other comprehensive loss		(91,774	)		(26,233	)
Accumulated deficit		(439,634	)		(376,003	)
Total stockholders’ equity		409,222			341,599
Total liabilities and stockholders’ equity	$	2,659,243		$	1,126,035

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020
Revenues:
Subscriptions	$	223,105		$	178,262		$	812,807		$	679,273
Perpetual licenses		19,707			21,362			53,080			57,382
Subscriptions and licenses		242,812			199,624			865,887			736,655
Services		24,920			19,943			99,159			64,889
Total revenues		267,732			219,567			965,046			801,544
Cost of revenues:
Cost of subscriptions and licenses		34,439			29,337			124,321			95,803
Cost of services		25,128			21,226			92,218			71,352
Total cost of revenues		59,567			50,563			216,539			167,155
Gross profit		208,165			169,004			748,507			634,389
Operating expenses:
Research and development		63,002			45,945			220,915			185,515
Selling and marketing		47,394			36,240			162,240			143,791
General and administrative		39,883			27,884			150,116			113,274
Deferred compensation plan		5,719			292			95,046			177
Amortization of purchased intangibles		8,898			4,368			25,601			15,352
Expenses associated with initial public offering		—			—			—			26,130
Total operating expenses		164,896			114,729			653,918			484,239
Income from operations		43,269			54,275			94,589			150,150
Interest expense, net		(3,883	)		(3,026	)		(12,491	)		(7,476	)
Other income, net		1,483			18,190			11,231			24,946
Income before income taxes		40,869			69,439			93,329			167,620
(Provision) benefit for income taxes		(1,642	)		(16,480	)		3,448			(38,625	)
Loss from investment accounted for using the equity method, net of tax		(646	)		(1,027	)		(3,585	)		(2,474	)
Net income		38,581			51,932			93,192			126,521
Less: Net income attributable to participating securities		(3	)		(230	)		(9	)		(234	)
Net income attributable to Class A and Class B common stockholders	$	38,578		$	51,702		$	93,183		$	126,287
Per share information:
Net income per share, basic	$	0.13		$	0.17		$	0.30		$	0.44
Net income per share, diluted	$	0.12		$	0.17		$	0.30		$	0.42
Weighted average shares, basic		307,447,788			297,192,775			305,711,345			289,863,272
Weighted average shares, diluted		314,782,892			309,096,405			314,610,814			299,371,129

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

	Year Ended
	December 31,
	2021			2020
Cash flows from operating activities:
Net income	$	93,192		$	126,521
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		52,793			36,117
Bad debt allowance (recovery)		1,203			(1,000	)
Deferred income taxes		(19,745	)		16,246
Stock-based compensation expense		49,045			32,114
Amortization and write-off of deferred debt issuance costs		5,955			985
Change in fair value of derivative		(9,770	)		(347	)
Change in fair value of contingent consideration		550			(1,340	)
Foreign currency remeasurement loss (gain)		64			(24,502	)
Loss from investment accounted for using the equity method, net of tax		3,585			2,474
Changes in assets and liabilities, net of effect from acquisitions:
Accounts receivable		(35,519	)		12,388
Prepaid and other assets		14,260			11,705
Accounts payable, accruals, and other liabilities		50,077			47,656
Deferred compensation plan liabilities		92,926			3,706
Deferred revenues		5,340			(565	)
Income taxes payable, net of prepaid income taxes		(15,932	)		(3,818	)
Net cash provided by operating activities		288,024			258,340
Cash flows from investing activities:
Purchases of property and equipment and investment in capitalized software		(17,539	)		(16,447	)
Acquisitions, net of cash acquired		(1,034,983	)		(93,032	)
Other investing activities		(4,081	)		(7,854	)
Net cash used in investing activities		(1,056,603	)		(117,333	)
Cash flows from financing activities:
Proceeds from credit facilities		745,310			550,875
Payments of credit facilities		(991,310	)		(538,625	)
Proceeds from convertible senior notes, net of discounts and commissions		1,233,377			—
Payments of debt issuance costs		(5,643	)		(432	)
Purchase of capped call options		(51,605	)		—
Proceeds from term loans		199,505			125,000
Payments of financing leases		(197	)		(189	)
Payments of acquisition debt and other consideration		(2,371	)		(3,425	)
Payments of dividends		(33,396	)		(422,646	)
Payments for shares acquired including shares withheld for taxes		(120,539	)		(83,975	)
Proceeds from Common Stock Purchase Agreement		—			58,349
Proceeds from stock purchases under employee stock purchase plan		3,846			—
Proceeds from exercise of stock options		5,605			9,128
Net cash provided by (used in) financing activities		982,582			(136,511	)
Effect of exchange rate changes on cash and cash equivalents		(6,672	)		(3,591	)
Increase in cash and cash equivalents		207,331			905
Cash and cash equivalents, beginning of year		122,006			121,101
Cash and cash equivalents, end of year	$	329,337		$	122,006

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

Reconciliation of net income to Adjusted EBITDA:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020
Net income	$	38,581		$	51,932		$	93,192		$	126,521
Interest expense, net		3,883			3,026			12,491			7,476
Provision (benefit) for income taxes		1,642			16,480			(3,448	)		38,625
Depreciation and amortization		16,847			10,281			52,793			36,117
Stock-based compensation		15,966			9,354			48,152			32,114
Deferred compensation plan		5,719			292			95,046			177
Acquisition expenses		6,369			3,168			34,368			11,666
Realignment expenses		—			10			—			10,022
Expenses associated with IPO		—			—			—			26,130
Other income, net		(1,483	)		(18,190	)		(11,231	)		(24,946	)
Loss from investment accounted for using the equity method, net of tax		646			1,027			3,585			2,474
Adjusted EBITDA	$	88,170		$	77,380		$	324,948		$	266,376

Reconciliation of net income to Adjusted Net Income:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020
Net income	$	38,581		$	51,932		$	93,192		$	126,521
Non-GAAP adjustments, prior to income taxes:
Amortization of purchased intangibles and developed technologies		11,998			6,027			34,001			20,721
Stock-based compensation		15,966			9,354			48,152			32,114
Deferred compensation plan		5,719			292			95,046			177
Acquisition expenses		6,369			3,168			34,368			11,666
Realignment expenses		—			10			—			10,022
Expenses associated with IPO		—			—			—			26,130
Other income, net		(1,483	)		(18,190	)		(11,231	)		(24,946	)
Total non-GAAP adjustments, prior to income taxes		38,569			661			200,336			75,884
Income tax effect of non-GAAP adjustments		(5,827	)		(1,310	)		(30,173	)		(12,067	)
Loss from investment accounted for using the equity method, net of tax		646			1,027			3,585			2,474
Adjusted Net Income	$	71,969		$	52,310		$	266,940		$	192,812

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020
Cost of subscriptions and licenses	$	34,439		$	29,337		$	124,321		$	95,803
Amortization of purchased intangibles and developed technologies		(3,100	)		(1,659	)		(8,400	)		(5,369	)
Stock-based compensation		(608	)		(17	)		(1,417	)		(925	)
Acquisition expenses		(26	)		—			(33	)		—
Realignment expenses		—			8			—			(42	)
Adjusted cost of subscriptions and licenses	$	30,705		$	27,669		$	114,471		$	89,467

Cost of services	$	25,128		$	21,226		$	92,218		$	71,352
Stock-based compensation		(529	)		(156	)		(1,144	)		(2,857	)
Acquisition expenses		(1,466	)		(866	)		(5,846	)		(1,916	)
Realignment expenses		—			126			—			(1,422	)
Adjusted cost of services	$	23,133		$	20,330		$	85,228		$	65,157

Research and development	$	63,002		$	45,945		$	220,915		$	185,515
Stock-based compensation		(5,617	)		(3,952	)		(19,510	)		(11,769	)
Acquisition expenses		(1,900	)		(1,493	)		(6,782	)		(6,605	)
Realignment expenses		—			62			—			(848	)
Adjusted research and development	$	55,485		$	40,562		$	194,623		$	166,293

Selling and marketing	$	47,394		$	36,240		$	162,240		$	143,791
Stock-based compensation		(1,977	)		(652	)		(5,461	)		(6,259	)
Acquisition expenses		(463	)		(75	)		(1,066	)		(318	)
Realignment expenses		—			(762	)		—			(5,945	)
Adjusted selling and marketing	$	44,954		$	34,751		$	155,713		$	131,269

General and administrative	$	39,883		$	27,884		$	150,116		$	113,274
Stock-based compensation		(7,235	)		(4,577	)		(20,620	)		(10,304	)
Acquisition expenses		(2,508	)		(618	)		(20,609	)		(2,228	)
Realignment expenses		—			556			—			(1,765	)
Adjusted general and administrative	$	30,140		$	23,245		$	108,887		$	98,977

Income from operations	$	43,269		$	54,275		$	94,589		$	150,150
Amortization of purchased intangibles and developed technologies		11,998			6,027			34,001			20,721
Stock-based compensation		15,966			9,354			48,152			32,114
Deferred compensation plan		5,719			292			95,046			177
Acquisition expenses		6,369			3,168			34,368			11,666
Realignment expenses		—			10			—			10,022
Expenses associated with IPO		—			—			—			26,130
Adjusted income from operations	$	83,321		$	73,126		$	306,156		$	250,980

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