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

 

 

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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