Bentley Systems, Incorporated (Nasdaq: BSY) (“Bentley Systems”
or the “Company”), the infrastructure engineering software company,
today announced operating results for its fourth quarter and full
year ended December 31, 2021, and its financial outlook for
2022.
Fourth Quarter 2021 Financial Results:
- Total revenues were $267.7 million, up 21.9%
year-over-year;
- Subscriptions revenues were $223.1 million, up 25.2%
year-over-year;
- Last twelve-month recurring revenues were $834.2 million, up
19.7% year-over-year;
- Last twelve-month recurring revenues dollar-based net retention
rate was 109%, compared to 107% for the same period last year;
- Last twelve-month account retention rate was 98%, consistent
with the same period last year;
- Annualized Recurring Revenue (“ARR”) was $921.2 million as of
December 31, 2021, representing a constant currency ARR growth rate
of 26% from December 31, 2020;
- GAAP operating income was $43.3 million, compared to $54.3
million for the same period last year;
- GAAP net income was $38.6 million, compared to $51.9 million
for the same period last year. GAAP net income per diluted share
was $0.12, compared to $0.17 for the same period last year;
- Adjusted Net Income was $72.0 million, compared to $52.3
million for the same period last year. Adjusted Net Income per
diluted share was $0.23 compared to $0.17 for the same period last
year;
- Adjusted EBITDA was $88.2 million, compared to $77.4 million
for the same period last year. Adjusted EBITDA margin was 32.9%,
compared to 35.2% for the same period last year; and
- Cash flow from operations was $80.6 million, compared to $82.3
million for the same period last year.
Full Year 2021 Financial Results:
- Total revenues were $965.0 million, up 20.4%
year-over-year;
- Subscriptions revenues were $812.8 million, up 19.7%
year-over-year;
- GAAP operating income was $94.6 million, compared to $150.2
million for the same period last year. GAAP operating income for
2021 includes a one-time compensation charge of $90.7 million
resulting from a modification of our deferred compensation
plan;
- GAAP net income was $93.2 million, compared to $126.5 million
for the same period last year. GAAP net income per diluted share
was $0.30, compared to $0.42 for the same period last year. GAAP
net income for 2021 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 $266.9 million, compared to $192.8
million for the same period last year. Adjusted Net Income per
diluted share was $0.85 compared to $0.64 for the same period last
year;
- Adjusted EBITDA was $324.9 million, compared to $266.4 million
for the same period last year. Adjusted EBITDA margin was 33.7%,
compared to 33.2% for the same period last year; and
- Cash flow from operations was $288.0 million, compared to
$258.3 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.”
CEO Greg Bentley said, “Our fourth quarter of 2021 capped a year
of consistently and increasingly improving tone of business and
operating metrics, and we enter 2022 on an unprecedented high note
in terms of business confidence. From a long-term standpoint, BSY
management takes pride in having responsibly completed our first
full year as a public company. Our quarterly reporting tends to
focus on milestones in operations and acquisitions, but I think our
notable headway in per-share earnings measures is representative of
the conscientious stewardship to which we hold ourselves
accountable. Our many established competitive advantages as the
infrastructure engineering software company make us confident in
predictably achieving advancements in both growth and financial
performance, including from generationally compelling opportunities
for digital twin cloud services to advance infrastructure
resilience.”
Mr. Bentley continued, “Our 2022 outlook, together with reliably
strong 2020 and 2021 results, demonstrates our resolute commitment
to deliberately expand our adjusted operating margins (normalized
for nonrecurring pandemic-related savings) annually. At the same
time, responding to strong market demand, we continue to expand
resource initiatives for our user organizations’ success and for
further SMB penetration, sustaining our compounded gains in ARR
growth from pre-pandemic (and pre-IPO) levels. While we acknowledge
that geopolitical complications are adding uncertainties, BSY is
now more globally diversified than ever, especially by virtue of
our complementary and high-performing Seequent acquisition. In
January, 2022 we closed the Power Line Systems acquisition to
complete our market-leading grid integration portfolio for energy
transmission and distribution— signifying our proactivity in
advancing infrastructure engineering, going digital, to enable our
world’s sustainable development goals.”
Recent Financial Developments:
- On January 31, 2022, we completed the acquisition of Power Line
Systems, a leader in software for the design of overhead electric
power transmission lines and their structures, for approximately
$700 million in cash, net of cash acquired, and subject to
customary adjustments including for working capital. We used
available cash and borrowings under our bank credit facility to
fund the transaction.
2022 Financial Outlook
The Company is sharing the following outlook for the year ending
December 31, 2022.
- Total revenues in the range of $1,110 million to $1,140
million, representing growth of 15.0% to 18.1% (16.9% to 20.1% in
constant currency);
- Constant currency ARR growth rate of 14% to 16% (1);
- Adjusted EBITDA in the range of $370 million to $380 million,
representing growth of 13.9% to 16.9% (16.3% to 19.5% in constant
currency), and Adjusted EBITDA margin of approximately 33%;
and
- Effective tax rate of less than 15%.
____________________
(1)
The outlook for constant currency ARR
growth rate includes growth of 2.5% from the initial inclusion of
Power Line Systems, and growth of 11.5% to 13.5% from business
performance.
The Company does not provide quarterly guidance, but to the
extent expectations materially change we will update our full-year
financial outlook when announcing subsequent quarterly operating
results.
The 2022 outlook information provided above includes Constant
currency ARR growth rate, Adjusted EBITDA, and Adjusted EBITDA
margin guidance, which are non-GAAP financial measures management
uses in measuring performance. The Company is unable to reconcile
these forward-looking non-GAAP measures to GAAP without
unreasonable efforts because it is not possible to predict with a
reasonable degree of certainty the actual impact of certain items
and unanticipated events, including stock-based compensation
charges, depreciation and amortization of capitalized software
costs and of acquired intangible assets, realignment expenses, and
other items, which would be included in GAAP results. The impact of
such items and unanticipated events could be potentially
significant.
The 2022 outlook is forward-looking, subject to significant
business, economic, regulatory, and competitive uncertainties and
contingencies, many of which are beyond the control of the Company
and its management, and based upon assumptions with respect to
future decisions, which are subject to change. Actual results may
vary and those variations may be material. As such, our results may
not fall within the ranges contained in this outlook. The Company
uses these forward-looking measures to evaluate its ongoing
operations and for internal planning and forecasting purposes.
Operating Results Call Details
Bentley Systems will host a live Zoom video webinar on March 1,
2022 at 8:15 a.m. EST to discuss operating results for its fourth
quarter and full year ended December 31, 2021, and 2022 financial
outlook.
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_rP8Uv_28Q3GEOkkAFHwBGg.
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.
- 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.
- 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 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 Annual
Report on Form 10-K to be filed with the United States Securities
and Exchange Commission.
We calculate these non-GAAP financial measures as follows:
- 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, acquisition expenses, 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 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 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 income, and (income) loss from investment
accounted for using the equity method, net of tax. The tax effect
of adjustments to net 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 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;
and
- Adjusted EBITDA margin is determined by dividing Adjusted
EBITDA by 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 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220228006184/en/
Investor: 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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