Bentley Systems, Incorporated (Nasdaq:BSY) (“Bentley Systems” or
the “Company”), the infrastructure engineering software company,
today announced operating results for its third quarter and nine
months ended September 30, 2021.
Third Quarter 2021 Financial Results:
- GAAP total revenues were $248.5 million, and adjusted total
revenues were $251.4 million, up 23.7% year-over-year;
- GAAP subscriptions revenues were $212.2 million, and adjusted
subscriptions revenues were $215.1 million, up 24.0%
year-over-year;
- Last twelve-month recurring revenues were $786.1 million, up
15.1% year-over-year;
- Last twelve-month recurring revenues dollar-based net retention
rate was 106% (calculated under Topic 606), compared to 110%
(calculated under Topic 605) for the same period last year;
- Last twelve-month account retention rate was 98% (calculated
under Topic 606), compared to 98% (calculated under Topic 605) for
the same period last year;
- Annualized Recurring Revenue (“ARR”) was $903.8 million as of
September 30, 2021, representing a constant currency ARR growth
rate of 26% from September 30, 2020;
- GAAP operating loss was $40.4 million, compared to GAAP
operating income of $5.3 million for the same period last year. The
third quarter of 2021 GAAP operating loss was due to a one-time
compensation charge of $90.7 million resulting from a modification
of our deferred compensation plan;
- GAAP net loss was $50.1 million, compared to GAAP net income of
$5.8 million for the same period last year. GAAP net loss per
diluted share was $0.16, compared to GAAP net income per diluted
share of $0.02 for the same period last year. The third quarter of
2021 GAAP net loss was due to a one-time compensation charge of
$83.4 million, net of tax, resulting from a modification of our
deferred compensation plan;
- Adjusted Net Income was $56.3 million, compared to $51.4
million for the same period last year. Adjusted Net Income per
diluted share was $0.17 compared to $0.17 for the same period last
year;
- Adjusted EBITDA was $84.5 million, compared to $73.7 million
for the same period last year. Adjusted EBITDA margin was 33.6%,
compared to 36.2% for the same period last year;
- Cash flow from operations was $58.4 million, compared to $39.8
million for the same period last year.
Nine Months Ended September 30, 2021 Financial
Results:
- GAAP total revenues were $693.4 million, and adjusted total
revenues were $697.3 million, up 19.7% year-over-year;
- GAAP subscriptions revenues were $585.8 million, and adjusted
subscriptions revenues were $589.7 million, up 17.6%
year-over-year;
- GAAP operating income was $47.4 million, compared to $95.9
million for the same period last year. The nine months ended
September 30, 2021 GAAP operating income includes a one-time
compensation charge of $90.7 million resulting from a modification
of our deferred compensation plan;
- GAAP net income was $51.8 million, compared to $74.6 million
for the same period last year. GAAP net income per diluted share
was $0.16, compared to $0.25 for the same period last year. The
nine months ended September 30, 2021 GAAP net income includes a
one-time compensation charge of $83.4 million, net of tax,
resulting from a modification of our deferred compensation
plan;
- Adjusted Net Income was $195.0 million, compared to $140.5
million for the same period last year. Adjusted Net Income per
diluted share was $0.62 compared to $0.47 for the same period last
year;
- Adjusted EBITDA was $236.8 million, compared to $189.0 million
for the same period last year. Adjusted EBITDA margin was 34.0%,
compared to 32.4% for the same period last year;
- Cash flow from operations was $207.4 million, compared to
$176.0 million for the same period last year.
Definitions of the non-GAAP financial measures used in this
press release and reconciliations of such measures to the most
comparable GAAP financial measures are included below under the
heading “Use and Reconciliation of Non-GAAP Financial
Measures.”
“Our third-quarter operating results continued to track
consistently with last quarter’s qualitative observations and with
the expectations for full-year 2021 presented then. Significantly,
BSY’s investments since 2020 in our new User Success organization
(now numbering about 600 colleagues) and in our Virtuosity
inside-sales group (now over 200 colleagues focused on SMB new
business), seem to have served effectively to strengthen our
underlying growth rate of business performance. While the
industrial / resources ‘CAPEX’ downturn remains an enduring
headwind globally, we do begin to discern new business improvement,
presumably due to an energy price rebound, in regions dependent on
such revenue sources,” said CEO Greg Bentley.
“With infrastructure spending increases anticipated, including
pursuant to legislation finally advancing in the U.S., public works
/ utility sector, participants everywhere are fully anticipating
hiring challenges and are acknowledging that going digital is ever
more necessary to sustain growth, and infrastructure resilience and
adaptation. The executive promotions that BSY has announced today,
along with a carefully considered change to our deferred
compensation plan for certain key executives of long standing,
reflect our own prioritization of top talent retention and
development,” he concluded.
Third Quarter 2021 Financial Developments:
In August 2021, our Board of Directors approved an amendment to
our unfunded Nonqualified Deferred Compensation Plan (the “DCP”),
which offered to certain active executives in the DCP a one-time,
short-term election to reallocate a limited portion of their DCP
holdings from phantom shares of the Company’s Class B Common Stock
into other DCP phantom investment funds. This one-time reallocation
opportunity was offered only to certain active executives (but not
to Directors or Bentley family members) in order to encourage
retention, as otherwise these executives could only have materially
diversified their investments in Company equity (primarily held in
the DCP) by voluntarily terminating employment to trigger DCP
distributions. These executives in aggregate accordingly
diversified 24% of their phantom shares of the Company’s Class B
Common Stock. This resulted in a reduction of 1,500,000 shares in
both the basic and diluted count of Company shares.
While DCP participants’ investments in phantom shares remain
equity classified, as they will be settled in shares of Class B
Common Stock upon eventual distribution, the amendment and
elections resulted in a change to liability classification for the
reallocated phantom investments, as they will be settled in cash
upon eventual distribution. As a result, during the three and nine
months ended September 30, 2021, the Company recognized a one-time
compensation charge of $90.7 million to Deferred compensation plan
expenses in the consolidated statements of operations and
reclassified cumulative compensation cost of $4.7 million from
Additional paid-in capital to Accruals and other current
liabilities or Deferred compensation plan liabilities in the
consolidated balance sheet to record the reallocated deferred
compensation plan liabilities at their fair value of $95.5
million.
Subsequent to the one-time reallocation, these diversified
deferred compensation plan liabilities will be marked to market at
the end of each reporting period, with changes in the liabilities
recorded as an expense (income) to Deferred compensation plan in
the consolidated statements of operations.
Operating Results Call Details
Bentley Systems will host a live Zoom video webinar on November
9, 2021 at 8:15 a.m. EST to discuss operating results for its third
quarter and nine months ended September 30, 2021.
Those wishing to participate should access the live Zoom video
webinar of the event through a direct registration link at
https://zoom.us/webinar/register/WN_m9k8Z07RTJGKt7iv-maurQ.
Alternatively, the event can be accessed from the Events &
Presentations page on Bentley Systems’ Investor Relations website
at https://investors.bentley.com. In addition, a replay and
transcript will be available after the conclusion of the live event
on Bentley Systems’ Investor Relations website for one year.
Definitions of Certain Key Business Metrics
Definitions of the non-GAAP financial measures used in this
operating results press release and reconciliations of such
measures to their nearest GAAP equivalents are included below under
“Use and Reconciliation of Non-GAAP Financial Measures.” Certain
non-GAAP measures included in our financial outlook are not being
reconciled to the comparable GAAP financial measures because the
GAAP measures are not accessible on a forward-looking basis. The
Company is unable to reconcile these forward-looking non-GAAP
financial measures to the most directly comparable GAAP measures
without unreasonable efforts because the Company is currently
unable to predict with a reasonable degree of certainty the type
and extent of certain items that would be expected for these
periods not to impact the non-GAAP measures, but would impact GAAP
measures. Such unavailable information, which could have a
significant impact on the Company’s GAAP financial results, may
include stock-based compensation charges, depreciation and
amortization of capitalized software costs and of acquired
intangible assets, realignment expenses, and other items.
Last twelve-month recurring revenues are calculated as recurring
revenues recognized over the preceding twelve-month period. We
define recurring revenues as subscription revenues that recur
monthly, quarterly, or annually with specific or automatic renewal
clauses and professional services revenues in which the underlying
contract is based on a fixed fee and contains automatic annual
renewal provisions.
Constant Currency Metrics
In reporting period-over-period results, we calculate the
effects of foreign currency fluctuations and constant currency
information by translating current period results using prior
period average foreign currency exchange rates. Our definition of
constant currency may differ from other companies reporting
similarly named measures, and these constant currency performance
measures should be viewed in addition to, and not as a substitute
for, our operating performance measures calculated in accordance
with GAAP.
- Our last twelve-month recurring revenues dollar-based net
retention rate is calculated, using the average exchange rates for
the prior period, as follows: the recurring revenues for the
current period, including any growth or reductions from accounts
with recurring revenues in the prior period (“existing accounts”),
but excluding recurring revenues from any new accounts added during
the current period, divided by the total recurring revenues from
all accounts during the prior period. A period is defined as any
trailing twelve months. Prior to the year ended December 31, 2020,
the recurring revenues dollar-based net retention rate was
calculated using revenues recognized pursuant to Topic 605 for all
periods in order to enhance comparability during our transition to
Topic 606 as we did not have all information that was necessary to
calculate account retention rate pursuant to Topic 606 for earlier
periods.
- Our last twelve-month account retention rate for any given
twelve-month period is calculated using the average currency
exchange rates for the prior period, as follows: the prior period
recurring revenues from all accounts with recurring revenues in the
current and prior period, divided by total recurring revenues from
all accounts during the prior period. Prior to the year ended
December 31, 2020, the account retention rate was calculated using
revenues recognized pursuant to Topic 605 for all periods in order
to enhance comparability during our transition to Topic 606 as we
did not have all information that was necessary to calculate
account retention rate pursuant to Topic 606 for earlier
periods.
- Our constant currency ARR growth rate is the growth rate of our
ARR, measured on a constant currency basis. Our ARR is defined as
the sum of the annualized value of our portfolio of contracts that
produce recurring revenue as of the last day of the reporting
period, and the annualized value of the last three months of
recognized revenues for our contractually recurring
consumption-based software subscriptions with consumption
measurement durations of less than one year.
Use and Reconciliation of Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP,
we have calculated adjusted total revenues, adjusted subscriptions
revenues, adjusted cost of subscriptions and licenses, adjusted
cost of services, adjusted research and development, adjusted
selling and marketing, adjusted general and administrative,
adjusted income from operations, Adjusted Net Income, Adjusted Net
Income per diluted share, Adjusted EBITDA, and Adjusted EBITDA
margin, each of which are non-GAAP financial measures. We have
provided tabular reconciliations of each of these non-GAAP
financial measures to such measure’s most directly comparable GAAP
financial measure.
Management uses these non-GAAP financial measures to understand
and compare operating results across accounting periods, for
internal budgeting and forecasting purposes, and to evaluate
financial performance. Our non-GAAP financial measures are
presented as supplemental disclosure as we believe they provide
useful information to investors and others in understanding and
evaluating our results and prospects period-over-period without the
impact of certain items that do not directly correlate to our
operating performance and that may vary significantly from period
to period for reasons unrelated to our operating performance, as
well as to compare our financial results to those of other
companies. Our definitions of these non-GAAP financial measures may
differ from similarly titled measures presented by other companies
and therefore comparability may be limited. In addition, other
companies may not publish these or similar metrics. Thus, our
non-GAAP financial measures should be considered in addition to,
not as a substitute for, or in isolation from, the financial
information prepared in accordance with GAAP, and should be read in
conjunction with the financial statements included in our Quarterly
Report on Form 10-Q to be filed with the United States Securities
and Exchange Commission.
We calculate these non-GAAP financial measures as follows:
- Adjusted total revenues is determined by adding back to GAAP
total revenues the fair value adjustment of acquired deferred
revenues for the respective periods;
- Adjusted subscriptions revenues is determined by adding back to
GAAP subscriptions revenues the fair value adjustment of acquired
deferred revenues for the respective periods;
- Adjusted cost of subscriptions and licenses is determined by
adding back to GAAP cost of subscriptions and licenses,
amortization of purchased intangibles and developed technologies,
stock-based compensation, and realignment expenses, for the
respective periods;
- Adjusted cost of services is determined by adding back to GAAP
cost of services, stock-based compensation, acquisition expenses,
and realignment expenses, for the respective periods;
- Adjusted research and development is determined by adding back
to GAAP research and development, stock-based compensation,
acquisition expenses, and realignment expenses, for the respective
periods;
- Adjusted selling and marketing is determined by adding back to
GAAP selling and marketing, stock-based compensation, acquisition
expenses, and realignment expenses, for the respective
periods;
- Adjusted general and administrative is determined by adding
back to GAAP general and administrative, stock-based compensation,
acquisition expenses, and realignment expenses, for the respective
periods;
- Adjusted income from operations is determined by adding back to
GAAP operating (loss) income, amortization of purchased intangibles
and developed technologies, stock-based compensation, expense
(income) relating to deferred compensation plan liabilities,
acquisition expenses, realignment expenses, and expenses associated
with initial public offering (“IPO”) for the respective
periods;
- Adjusted Net Income is defined as net (loss) income adjusted
for the following: amortization of purchased intangibles and
developed technologies, stock-based compensation, expense (income)
relating to deferred compensation plan liabilities, acquisition
expenses, realignment expenses, expenses associated with IPO, other
non-operating (income) expense, net, the tax effect of the above
adjustments to net (loss) income, and (income) loss from investment
accounted for using the equity method, net of tax. The tax effect
of adjustments to net (loss) income is based on the estimated
marginal effective tax rates in the jurisdictions impacted by such
adjustments;
- Adjusted Net Income per diluted share is determined by dividing
Adjusted Net Income by the weighted average diluted shares;
- Adjusted EBITDA is defined as net (loss) income adjusted for
interest expense, net, provision (benefit) for income taxes,
depreciation and amortization, stock-based compensation, expense
(income) relating to deferred compensation plan liabilities,
acquisition expenses, realignment expenses, expenses associated
with IPO, other non-operating (income) expense, net, and (income)
loss from investment accounted for using the equity method, net of
tax;
- Adjusted EBITDA margin is determined by dividing Adjusted
EBITDA by adjusted total revenues.
We encourage investors and others to review our financial
information in its entirety, not to rely on any single financial
measure, and to view these non-GAAP financial measures in
conjunction with the related GAAP financial measures. During the
third quarter of 2021, the Company modified its definitions of
Adjusted EBITDA and Adjusted Net Income to adjust for expense
(income) relating to deferred compensation plan liabilities and
amounts for all periods herein reflect application of the modified
definition.
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 geosciences software
portfolio, 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, iTwin, MicroStation, ProjectWise, and Seequent 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)
September 30, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
155,755
$
122,006
Accounts receivable
194,682
195,782
Allowance for doubtful accounts
(6,355
)
(5,759
)
Prepaid income taxes
20,958
3,535
Prepaid and other current assets
35,062
24,694
Total current assets
400,102
340,258
Property and equipment, net
31,103
28,414
Operating lease right-of-use assets
48,642
46,128
Intangible assets, net
251,467
45,627
Goodwill
1,592,399
581,174
Investments
5,429
5,691
Deferred income taxes
77,418
39,224
Other assets
47,523
39,519
Total assets
$
2,454,083
$
1,126,035
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
12,502
$
16,492
Accruals and other current liabilities
317,271
226,793
Deferred revenues
189,683
202,294
Operating lease liabilities
18,003
16,610
Income taxes payable
11,974
3,366
Total current liabilities
549,433
465,555
Long-term debt
1,302,845
246,000
Deferred compensation plan liabilities
89,174
2,422
Long-term operating lease liabilities
32,583
31,767
Deferred revenues
6,614
7,020
Deferred income taxes
69,471
10,849
Income taxes payable
7,613
7,883
Other liabilities
17,352
12,940
Total liabilities
2,075,085
784,436
Stockholders’ equity:
Common stock
2,820
2,722
Additional paid-in capital
921,410
741,113
Accumulated other comprehensive loss
(81,880
)
(26,233
)
Accumulated deficit
(463,352
)
(376,003
)
Total stockholders’ equity
378,998
341,599
Total liabilities and stockholders’
equity
$
2,454,083
$
1,126,035
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Statements of
Operations
(in thousands, except share
and per share data)
(unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Revenues:
Subscriptions
$
212,227
$
173,174
$
585,804
$
501,011
Perpetual licenses
11,866
12,827
33,373
36,020
Subscriptions and licenses
224,093
186,001
619,177
537,031
Services
24,387
16,996
74,239
44,946
Total revenues
248,480
202,997
693,416
581,977
Cost of revenues:
Cost of subscriptions and licenses
31,056
23,338
89,882
66,466
Cost of services
23,176
19,290
67,090
50,126
Total cost of revenues
54,232
42,628
156,972
116,592
Gross profit
194,248
160,369
536,444
465,385
Operating expense (income):
Research and development
57,334
50,217
157,913
139,570
Selling and marketing
44,392
41,824
114,846
107,551
General and administrative
35,329
32,956
110,233
85,390
Deferred compensation plan
88,965
50
89,327
(115
)
Amortization of purchased intangibles
8,676
3,869
16,703
10,984
Expenses associated with initial public
offering
—
26,130
—
26,130
Total operating expenses
234,696
155,046
489,022
369,510
(Loss) income from operations
(40,448
)
5,323
47,422
95,875
Interest expense, net
(3,836
)
(1,934
)
(8,608
)
(4,450
)
Other (expense) income, net
(957
)
13,741
9,748
6,756
(Loss) income before income taxes
(45,241
)
17,130
48,562
98,181
(Provision) benefit for income taxes
(4,223
)
(10,705
)
6,165
(22,145
)
Loss from investment accounted for using
the equity method, net of tax
(664
)
(581
)
(2,939
)
(1,447
)
Net (loss) income
(50,128
)
5,844
51,788
74,589
Less: Net (loss) income attributable to
participating securities
(3
)
(4
)
(6
)
(4
)
Net (loss) income attributable to Class A
and Class B common stockholders
$
(50,131
)
$
5,840
$
51,782
$
74,585
Per share information:
Net (loss) income per share, basic
$
(0.16
)
$
0.02
$
0.17
$
0.26
Net (loss) income per share, diluted
$
(0.16
)
$
0.02
$
0.16
$
0.25
Weighted average shares, basic
308,195,379
289,318,391
305,119,985
287,063,892
Weighted average shares, diluted
308,195,379
299,634,961
314,658,136
297,251,349
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
2021
2020
Cash flows from operating activities:
Net income
$
51,788
$
74,589
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
35,946
25,836
Bad debt allowance (recovery)
466
(541
)
Deferred income taxes
(17,788
)
7,853
Stock-based compensation expense
32,853
23,617
Amortization and write-off of deferred
debt issuance costs
4,160
430
Change in fair value of derivative
(9,198
)
3,365
Change in fair value of contingent
consideration
—
(1,340
)
Foreign currency remeasurement loss
(gain)
103
(9,067
)
Loss from investment accounted for using
the equity method, net of tax
2,939
1,447
Changes in assets and liabilities, net of
effect from acquisitions:
Accounts receivable
26,305
46,661
Prepaid and other assets
11,310
8,907
Accounts payable, accruals, and other
liabilities
31,766
31,486
Deferred compensation plan liabilities
86,608
2,487
Deferred revenues
(36,598
)
(35,134
)
Income taxes payable, net of prepaid
income taxes
(13,243
)
(4,571
)
Net cash provided by operating
activities
207,417
176,025
Cash flows from investing activities:
Purchases of property and equipment and
investment in capitalized software
(11,152
)
(13,533
)
Acquisitions, net of cash acquired of
$37,837 and $2,064, respectively
(1,033,695
)
(68,920
)
Other investing activities
(3,000
)
(6,355
)
Net cash used in investing activities
(1,047,847
)
(88,808
)
Cash flows from financing activities:
Proceeds from credit facilities
682,083
432,375
Payments of credit facilities
(860,228
)
(201,125
)
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
(51,555
)
—
Proceeds from term loan
—
125,000
Payments of financing leases
(147
)
(141
)
Payments of acquisition debt and other
consideration
(741
)
(2,034
)
Payments of dividends
(25,076
)
(412,852
)
Payments for shares acquired including
shares withheld for taxes
(111,306
)
(72,476
)
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
5,039
3,206
Net cash provided by (used in) financing
activities
869,649
(70,130
)
Effect of exchange rate changes on cash
and cash equivalents
4,530
(590
)
Increase in cash and cash equivalents
33,749
16,497
Cash and cash equivalents, beginning of
year
122,006
121,101
Cash and cash equivalents, end of
period
$
155,755
$
137,598
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP Measures
For the Three and Nine Months
Ended September 30, 2021 and 2020
(in thousands)
(unaudited)
Reconciliation of net (loss) income to
Adjusted EBITDA:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net (loss) income
$
(50,128
)
$
5,844
$
51,788
$
74,589
Interest expense, net
3,836
1,934
8,608
4,450
Provision (benefit) for income taxes
4,223
10,705
(6,165
)
22,145
Depreciation and amortization
16,666
9,172
35,946
25,836
Stock-based compensation
11,588
19,548
32,186
22,760
Deferred compensation plan
88,965
50
89,327
(115
)
Acquisition expenses
7,697
3,489
31,897
8,498
Realignment expenses
—
9,943
—
10,012
Expenses associated with IPO
—
26,130
—
26,130
Other expense (income), net
957
(13,741
)
(9,748
)
(6,756
)
Loss from investment accounted for using
the equity method, net of tax
664
581
2,939
1,447
Adjusted EBITDA
$
84,468
$
73,655
$
236,778
$
188,996
Reconciliation of net (loss) income to
Adjusted Net Income:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Net (loss) income
$
(50,128
)
$
5,844
$
51,788
$
74,589
Non-GAAP adjustments, prior to income
taxes:
Amortization of purchased intangibles and
developed technologies
11,539
5,236
22,003
14,694
Stock-based compensation
11,588
19,548
32,186
22,760
Deferred compensation plan
88,965
50
89,327
(115
)
Acquisition expenses
7,697
3,489
31,897
8,498
Realignment expenses
—
9,943
—
10,012
Expenses associated with IPO
—
26,130
—
26,130
Other expense (income), net
957
(13,741
)
(9,748
)
(6,756
)
Total non-GAAP adjustments, prior to
income taxes
120,746
50,655
165,665
75,223
Income tax effect of non-GAAP
adjustments
(14,993
)
(5,656
)
(25,421
)
(10,757
)
Loss from investment accounted for using
the equity method, net of tax
664
581
2,939
1,447
Adjusted Net Income
$
56,289
$
51,424
$
194,971
$
140,502
Reconciliation of GAAP Financial Statement
Line Items to Non-GAAP Adjusted Financial Statement Line Items:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
Total revenues
$
248,480
$
202,997
$
693,416
$
581,977
Fair value adjustment of acquired deferred
revenues
2,914
288
3,924
483
Adjusted total revenues
$
251,394
$
203,285
$
697,340
$
582,460
Subscriptions revenues
$
212,227
$
173,174
$
585,804
$
501,011
Fair value adjustment of acquired deferred
revenues
2,914
288
3,924
483
Adjusted subscriptions revenues
$
215,141
$
173,462
$
589,728
$
501,494
Cost of subscriptions and licenses
$
31,056
$
23,338
$
89,882
$
66,466
Amortization of purchased intangibles and
developed technologies
(2,863
)
(1,367
)
(5,300
)
(3,710
)
Stock-based compensation
(320
)
(861
)
(809
)
(908
)
Acquisition expenses
(7
)
—
(7
)
—
Realignment expenses
—
(50
)
—
(50
)
Adjusted cost of subscriptions and
licenses
$
27,866
$
21,060
$
83,766
$
61,798
Cost of services
$
23,176
$
19,290
$
67,090
$
50,126
Stock-based compensation
(227
)
(2,526
)
(615
)
(2,701
)
Acquisition expenses
(1,835
)
(614
)
(4,380
)
(1,050
)
Realignment expenses
—
(1,548
)
—
(1,548
)
Adjusted cost of services
$
21,114
$
14,602
$
62,095
$
44,827
Research and development
$
57,334
$
50,217
$
157,913
$
139,570
Stock-based compensation
(5,178
)
(6,661
)
(13,893
)
(7,817
)
Acquisition expenses
(1,537
)
(1,969
)
(4,882
)
(5,112
)
Realignment expenses
—
(841
)
—
(910
)
Adjusted research and development
$
50,619
$
40,746
$
139,138
$
125,731
Selling and marketing
$
44,392
$
41,824
$
114,846
$
107,551
Stock-based compensation
(1,481
)
(4,803
)
(3,484
)
(5,607
)
Acquisition expenses
(421
)
(86
)
(603
)
(243
)
Realignment expenses
—
(5,183
)
—
(5,183
)
Adjusted selling and marketing
$
42,490
$
31,752
$
110,759
$
96,518
General and administrative
$
35,329
$
32,956
$
110,233
$
85,390
Stock-based compensation
(4,382
)
(4,697
)
(13,385
)
(5,727
)
Acquisition expenses
(983
)
(532
)
(18,101
)
(1,610
)
Realignment expenses
—
(2,321
)
—
(2,321
)
Adjusted general and administrative
$
29,964
$
25,406
$
78,747
$
75,732
Three Months Ended
Nine Months Ended
September 30,
September 30,
2021
2020
2021
2020
(Loss) income from operations
$
(40,448
)
$
5,323
$
47,422
$
95,875
Amortization of purchased intangibles and
developed technologies
11,539
5,236
22,003
14,694
Stock-based compensation
11,588
19,548
32,186
22,760
Deferred compensation plan
88,965
50
89,327
(115
)
Acquisition expenses
7,697
3,489
31,897
8,498
Realignment expenses
—
9,943
—
10,012
Expenses associated with IPO
—
26,130
—
26,130
Adjusted income from operations
$
79,341
$
69,719
$
222,835
$
177,854
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211109005628/en/
Investors: Ankit Hira or Ed Yuen Solebury Trout for Bentley
Systems ir@bentley.com 1-610-458-2777
Media: Carey Mann carey.mann@bentley.com 1-610-458-3170
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