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Bentley Systems Announces Third Quarter 2024 Results

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Bentley Systems (Nasdaq: BSY) reported its third quarter 2024 results, highlighting a 9.3% increase in total revenues to $335.2 million and a 12.0% rise in subscription revenues to $303.2 million. The company's ARR grew by 12% to $1,270.7 million. However, the operating income margin decreased to 20.5% from 24.0% last year. Net income per diluted share dropped to $0.13 from $0.16, while adjusted EPS increased to $0.24 from $0.22. Cash flows from operations improved to $86.1 million from $72.8 million. For the first nine months of 2024, total revenues were $1,003.3 million, up 9.3%, with subscription revenues at $907.8 million, up 12.4%. The company also announced a strategic partnership with Google and the acquisition of 3D geospatial company Cesium.

Bentley Systems (Nasdaq: BSY) ha riportato i risultati del terzo trimestre 2024, evidenziando un 9.3% di aumento del fatturato totale a $335.2 milioni e un 12.0% di crescita nei ricavi da abbonamento, arrivati a $303.2 milioni. L'ARR dell'azienda è cresciuto del 12% a $1,270.7 milioni. Tuttavia, il margine operativo è diminuito al 20.5% rispetto al 24.0% dell'anno scorso. L'utile netto per azione diluita è sceso a $0.13 da $0.16, mentre l'EPS rettificato è aumentato a $0.24 da $0.22. I flussi di cassa dalle operazioni sono migliorati a $86.1 milioni da $72.8 milioni. Per i primi nove mesi del 2024, il fatturato totale è stato di $1,003.3 milioni, in aumento del 9.3%, con i ricavi da abbonamento a $907.8 milioni, in crescita del 12.4%. L'azienda ha inoltre annunciato una partnership strategica con Google e l'acquisizione della compagnia geospaziale 3D Cesium.

Bentley Systems (Nasdaq: BSY) reportó sus resultados del tercer trimestre de 2024, destacando un 9.3% de aumento en los ingresos totales, que alcanzaron $335.2 millones, y un 12.0% en ingresos por suscripción, alcanzando $303.2 millones. El ARR de la empresa creció un 12% hasta $1,270.7 millones. Sin embargo, el margen de ingreso operativo disminuyó al 20.5% desde el 24.0% del año pasado. El ingreso neto por acción diluida cayó a $0.13 desde $0.16, mientras que el EPS ajustado aumentó a $0.24 desde $0.22. Los flujos de efectivo de las operaciones mejoraron a $86.1 millones desde $72.8 millones. Para los primeros nueve meses de 2024, los ingresos totales fueron de $1,003.3 millones, un incremento del 9.3%, con ingresos por suscripción de $907.8 millones, un aumento del 12.4%. La compañía también anunció una asociación estratégica con Google y la adquisición de la empresa geoespacial 3D Cesium.

벤틀리 시스템스(Bentley Systems, Nasdaq: BSY)는 2024년 3분기 결과를 발표하며 총 수익이 9.3% 증가하여 $335.2 백만에 도달했으며, 구독 수익도 12.0% 증가하여 $303.2 백만에 이르렀다고 밝혔습니다. 회사의 ARR12% 증가하여 $1,270.7 백만이 되었습니다. 그러나 운영 소득 마진은 작년의 24.0%에서 20.5%로 감소했습니다. 희석 주당 순이익은 $0.13로 떨어졌고, 이는 작년의 $0.16에서 감소한 수치입니다. 반면 조정된 주당 순이익(EPS)은 $0.24로 증가하여 작년의 $0.22에서 개선되었습니다. 운영으로부터의 현금 흐름은 $86.1 백만으로 증가했으며, 이는 $72.8 백만에서 상승한 것입니다. 2024년 첫 아홉 달 동안 총 수익은 $1,003.3 백만으로, 9.3% 증가했으며, 구독 수익은 $907.8 백만, 12.4% 증가했습니다. 회사는 구글과의 전략적 파트너십 및 3D 지리공간 회사인 세이저(Cesium)의 인수도 발표했습니다.

Bentley Systems (Nasdaq: BSY) a publié ses résultats du troisième trimestre 2024, mettant en avant une augmentation de 9.3% des revenus totaux atteignant $335.2 millions et une hausse de 12.0% des revenus d'abonnement, s'élevant à $303.2 millions. Le ARR de l'entreprise a augmenté de 12% pour atteindre $1,270.7 millions. Cependant, la marge de résultat d'exploitation a diminué à 20.5% contre 24.0% l'année dernière. Le bénéfice net par action diluée a chuté à $0.13 contre $0.16, tandis que le BPA ajusté a augmenté à $0.24 contre $0.22. Les flux de trésorerie provenant des opérations se sont améliorés à $86.1 millions contre $72.8 millions. Pour les neuf premiers mois de 2024, les revenus totaux étaient de $1,003.3 millions, en hausse de 9.3%, avec des revenus d'abonnement de $907.8 millions, en hausse de 12.4%. L'entreprise a également annoncé un partenariat stratégique avec Google et l'acquisition de la société géospatiale 3D Cesium.

Bentley Systems (Nasdaq: BSY) hat seine Ergebnisse für das dritte Quartal 2024 veröffentlicht und dabei einen 9.3% Anstieg der Gesamterlöse auf $335.2 Millionen und einen 12.0% Anstieg der Abonnementeinnahmen auf $303.2 Millionen hervorgehoben. Der ARR des Unternehmens wuchs um 12% auf $1,270.7 Millionen. Der operative Einkommensanteil sank jedoch auf 20.5% von 24.0% im letzten Jahr. Der Nettogewinn pro verwässertem Anteil fiel auf $0.13 von $0.16, während das bereinigte EPS auf $0.24 von $0.22 anstieg. Der Cashflow aus der betrieblichen Tätigkeit verbesserte sich auf $86.1 Millionen von $72.8 Millionen. Für die ersten neun Monate 2024 lagen die Gesamterlöse bei $1,003.3 Millionen, ein Anstieg von 9.3%, mit Abonnementeinnahmen von $907.8 Millionen, was einem Anstieg von 12.4% entspricht. Das Unternehmen kündigte auch eine strategische Partnerschaft mit Google und die Übernahme des 3D-Geodatenunternehmens Cesium an.

Positive
  • Total revenues increased by 9.3% to $335.2 million.
  • Subscription revenues rose by 12.0% to $303.2 million.
  • ARR grew by 12% to $1,270.7 million.
  • Cash flows from operations improved to $86.1 million from $72.8 million.
  • Adjusted EPS increased to $0.24 from $0.22.
  • New strategic partnership with Google.
  • Acquisition of 3D geospatial company Cesium.
Negative
  • Operating income margin decreased to 20.5% from 24.0%.
  • Net income per diluted share dropped to $0.13 from $0.16.

Insights

Bentley Systems delivered a solid Q3 2024 with notable growth metrics. Total revenues increased 9.3% to $335.2 million, driven by strong subscription revenue growth of 12%. The company's ARR reached $1.27 billion, showing healthy momentum with a 12% constant currency growth rate.

Key performance indicators remain robust with a 109% net retention rate, though slightly down from last year's 110%. While operating margins showed some compression, cash flow from operations improved significantly to $86.1 million. The new $1.3 billion credit facility with a $500 million accordion feature strengthens the company's financial flexibility for future growth initiatives.

The strategic acquisition of Cesium and partnership with Google position the company well for expansion in the 3D geospatial market, though these investments may impact margins in the near term.

The strategic moves under new CEO Nicholas Cumins signal an important pivot toward next-generation infrastructure software. The Cesium acquisition brings critical 3D geospatial capabilities and an established open standard (3D Tiles) that's already widely adopted. Combined with the Google partnership for geospatial content integration, these initiatives strengthen Bentley's digital twin platform proposition.

The focus on AI-powered asset analytics and new engineering applications demonstrates a clear vision for modernizing infrastructure development. The 91% subscription revenue composition indicates successful execution of the SaaS transformation, though the decline in Cohesive professional services requires attention.

EXTON, Pa.--(BUSINESS WIRE)-- Bentley Systems, Incorporated (Nasdaq: BSY), the infrastructure engineering software company, today announced results for the quarter ended September 30, 2024.

Third Quarter 2024 Results

  • Total revenues were $335.2 million, up 9.3% or 9.1% on a constant currency basis, year-over-year;
  • Subscriptions revenues were $303.2 million, up 12.0% or 11.8% on a constant currency basis, year-over-year;
  • Annualized Recurring Revenues (“ARR”) was $1,270.7 million as of September 30, 2024, compared to $1,124.8 million as of September 30, 2023, representing a constant currency ARR growth rate of 12%;
  • Last twelve-month recurring revenues dollar-based net retention rate was 109%, compared to 110% for the same period last year;
  • Operating income margin was 20.5%, compared to 24.0% for the same period last year;
  • Adjusted operating income inclusive of stock-based compensation expense (“Adjusted OI w/SBC”) margin was 26.7%, compared to 28.2% for the same period last year;
  • Net income per diluted share was $0.13, compared to $0.16 for the same period last year;
  • Adjusted net income per diluted share (“Adjusted EPS”) was $0.24, compared to $0.22 for the same period last year; and
  • Cash flows from operations was $86.1 million, compared to $72.8 million for the same period last year.

Nine Months Ended September 30, 2024 Results

  • Total revenues were $1,003.3 million, up 9.3% or 9.3% on a constant currency basis, year-over-year;
  • Subscriptions revenues were $907.8 million, up 12.4% or 12.4% on a constant currency basis, year-over-year;
  • Operating income margin was 24.0%, compared to 21.0% for the same period last year;
  • Adjusted OI w/SBC margin was 29.6%, compared to 27.2% for the same period last year;
  • Net income per diluted share was $0.57, compared to $0.46 for the same period last year;
  • Adjusted EPS was $0.86, compared to $0.72 for the same period last year; and
  • Cash flows from operations was $353.7 million, compared to $329.6 million for the same period last year.

Executive Chair Greg Bentley said, “The impressive inaugural quarter since completing our generational succession underscores my confidence in raising our sights broadly. The Company’s execution is sustaining progress towards our annual ramp in ARR growth. The Year in Infrastructure 2024 Conference showcased advancements in going digital that are ever more effectively surmounting the infrastructure engineering resource capacity gap. And our strategically significant acquisition of Cesium, with the other strategic initiatives Nicholas and his team have unveiled, exemplifies our reinvigorated prioritization of compelling new growth ambitions.”

CEO Nicholas Cumins said, “During my first 100 days as CEO, we unveiled ambitious strategic moves that will help propel our future growth: the acquisition of 3D geospatial company Cesium; a strategic partnership with Google to integrate their geospatial content; a new product portfolio for asset analytics and a new generation of engineering applications, both leveraging AI and digital twin technologies to improve the way infrastructure is designed, built, and operated. At the same time, we delivered strong quarterly operating results. Our year-over-year ARR growth on a constant currency basis accelerated to 12% in 24Q3 (12.5% excluding China). Strength was broad based across geographies and sectors as we continued to operate at a high level of performance, with favorable end-market conditions for the foreseeable future.”

CFO Werner Andre said, “24Q3’s upward inflection in year-over-year ARR growth is directionally consistent with our expectations for this year’s second half, more than compensating for attrition prevailing stubbornly in China. Growth in subscriptions revenues (now 91% of total revenues) remains robust at 12.4% year-to-date in constant currency, although total revenue growth for 2024 is expected at the lower end of our annual outlook range due to continued declines in Cohesive professional services for Maximo. Profitability and cash flow in the quarter position us well in relation to our profitability outlook and an increased cash flow outlook for the year. In October we entered into a new five-year $1.3 billion bank credit facility with a further $500 million ‘accordion’ feature.”

Recent Developments

  • On October 18, 2024, we entered into a new five-year senior secured credit agreement, which provides us with a $1.3 billion revolving credit facility, as well as an incremental $500 million “accordion” feature to increase the facility in the form of both revolving indebtedness and incremental term loans. We used borrowings under the revolving credit facility to repay all indebtedness outstanding under our previous credit facility, including our outstanding term loan;
  • On October 9, 2024, we announced a strategic partnership with Google to integrate Google's high-quality geospatial content with Bentley's infrastructure engineering software and digital twin platform to improve the ways infrastructure is designed, built, and operated “in context”; and
  • On September 6, 2024, we announced the acquisition of 3D geospatial company Cesium. Cesium is recognized as the foundational open platform for creating immersive 3D geospatial environments, and its 3D Tiles open standard has been widely adopted by leading enterprises, governments, and tens of thousands of application developer teams globally.

Call Details

Bentley Systems will host a live Zoom video webinar on November 7, 2024 at 8:15 a.m. EST to discuss results for its third quarter ended September 30, 2024.

Those wishing to participate should access the live Zoom video webinar of the event through a direct registration link at https://us06web.zoom.us/webinar/register/WN_ZlTBingnQoKzZgcRVSRB8w#/registration. 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.

Non-GAAP Financial Measures

In this press release, we sometimes refer to financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these measures are considered non-GAAP financial measures under the United States Securities and Exchange Commission (“SEC”) regulations. Those rules require the supplemental explanations and reconciliations that are in Bentley Systems’ Form 8-K (Quarterly Earnings Release) furnished to the SEC.

Forward-Looking Statements

This press release includes forward-looking statements regarding the future results of operations and financial condition, 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: adverse changes in global economic and/or political conditions; the impact of current and future sanctions, embargoes and other similar laws at the state and/or federal level that impose restrictions on our counterparties or upon our ability to operate our business within the subject jurisdictions; 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; failure to effectively manage succession; 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; the impact of changing or uncertain interest rates on us and on the industries we serve; our ability to integrate acquired businesses successfully; and our ability to identify and consummate future investments and/or acquisitions on terms satisfactory to us or at all.

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 Form 10-Qs, which are on file with the SEC. 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, powered by the iTwin Platform for infrastructure digital twins, include MicroStation and Bentley Open applications for modeling and simulation, Seequent’s software for geoprofessionals, and Bentley Infrastructure Cloud encompassing ProjectWise for project delivery, SYNCHRO for construction management, and AssetWise for asset operations. Bentley Systems’ 5,200 colleagues generate annual revenues of more than $1 billion in 194 countries.

© 2024 Bentley Systems, Incorporated. Bentley, the Bentley logo, 3D Tiles, AssetWise, Bentley Infrastructure Cloud, Bentley Open, Cesium, Cohesive, iTwin, MicroStation, ProjectWise, Seequent, and SYNCHRO 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

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

72,175

 

 

$

68,412

 

Accounts receivable

 

 

271,689

 

 

 

302,501

 

Allowance for doubtful accounts

 

 

(8,846

)

 

 

(8,965

)

Prepaid income taxes

 

 

15,846

 

 

 

12,812

 

Prepaid and other current assets

 

 

52,955

 

 

 

44,797

 

Total current assets

 

 

403,819

 

 

 

419,557

 

Property and equipment, net

 

 

34,533

 

 

 

40,100

 

Operating lease right-of-use assets

 

 

36,425

 

 

 

38,476

 

Intangible assets, net

 

 

225,788

 

 

 

248,787

 

Goodwill

 

 

2,390,392

 

 

 

2,269,336

 

Investments

 

 

24,724

 

 

 

23,480

 

Deferred income taxes

 

 

207,821

 

 

 

212,831

 

Other assets

 

 

72,985

 

 

 

67,283

 

Total assets

 

$

3,396,487

 

 

$

3,319,850

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

30,514

 

 

$

18,094

 

Accruals and other current liabilities

 

 

494,911

 

 

 

457,348

 

Deferred revenues

 

 

225,291

 

 

 

253,785

 

Operating lease liabilities

 

 

12,079

 

 

 

11,645

 

Income taxes payable

 

 

19,434

 

 

 

9,491

 

Current portion of long-term debt

 

 

 

 

 

10,000

 

Total current liabilities

 

 

782,229

 

 

 

760,363

 

Long-term debt

 

 

1,418,870

 

 

 

1,518,403

 

Deferred compensation plan liabilities

 

 

97,932

 

 

 

88,181

 

Long-term operating lease liabilities

 

 

27,954

 

 

 

30,626

 

Deferred revenues

 

 

15,820

 

 

 

15,862

 

Deferred income taxes

 

 

11,815

 

 

 

9,718

 

Income taxes payable

 

 

3,615

 

 

 

7,337

 

Other liabilities

 

 

4,242

 

 

 

5,378

 

Total liabilities

 

 

2,362,477

 

 

 

2,435,868

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

3,020

 

 

 

2,963

 

Additional paid-in capital

 

 

1,201,442

 

 

 

1,127,234

 

Accumulated other comprehensive loss

 

 

(82,959

)

 

 

(84,987

)

Accumulated deficit

 

 

(88,197

)

 

 

(161,932

)

Non-controlling interest

 

 

704

 

 

 

704

 

Total stockholders’ equity

 

 

1,034,010

 

 

 

883,982

 

Total liabilities and stockholders’ equity

 

$

3,396,487

 

 

$

3,319,850

 

BENTLEY SYSTEMS, INCORPORATED

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

Revenues:

 

 

 

 

 

 

 

 

Subscriptions

 

$

303,239

 

 

$

270,751

 

 

$

907,772

 

 

$

807,839

 

Perpetual licenses

 

 

11,274

 

 

 

11,887

 

 

 

31,649

 

 

 

33,152

 

Subscriptions and licenses

 

 

314,513

 

 

 

282,638

 

 

 

939,421

 

 

 

840,991

 

Services

 

 

20,660

 

 

 

23,974

 

 

 

63,852

 

 

 

76,781

 

Total revenues

 

 

335,173

 

 

 

306,612

 

 

 

1,003,273

 

 

 

917,772

 

Cost of revenues:

 

 

 

 

 

 

 

 

Cost of subscriptions and licenses

 

 

44,220

 

 

 

42,088

 

 

 

126,870

 

 

 

124,175

 

Cost of services

 

 

20,612

 

 

 

22,588

 

 

 

62,985

 

 

 

74,111

 

Total cost of revenues

 

 

64,832

 

 

 

64,676

 

 

 

189,855

 

 

 

198,286

 

Gross profit

 

 

270,341

 

 

 

241,936

 

 

 

813,418

 

 

 

719,486

 

Operating expense (income):

 

 

 

 

 

 

 

 

Research and development

 

 

70,068

 

 

 

65,465

 

 

 

204,148

 

 

 

203,382

 

Selling and marketing

 

 

64,940

 

 

 

53,757

 

 

 

176,455

 

 

 

160,262

 

General and administrative

 

 

51,359

 

 

 

42,678

 

 

 

152,695

 

 

 

128,743

 

Deferred compensation plan

 

 

6,983

 

 

 

(3,160

)

 

 

13,665

 

 

 

4,763

 

Amortization of purchased intangibles

 

 

8,361

 

 

 

9,517

 

 

 

25,717

 

 

 

29,567

 

Total operating expenses

 

 

201,711

 

 

 

168,257

 

 

 

572,680

 

 

 

526,717

 

Income from operations

 

 

68,630

 

 

 

73,679

 

 

 

240,738

 

 

 

192,769

 

Interest expense, net

 

 

(4,669

)

 

 

(10,047

)

 

 

(16,289

)

 

 

(30,623

)

Other (expense) income, net

 

 

(5,087

)

 

 

5,953

 

 

 

4,330

 

 

 

7,207

 

Income before income taxes

 

 

58,874

 

 

 

69,585

 

 

 

228,779

 

 

 

169,353

 

Provision for income taxes

 

 

(16,522

)

 

 

(16,514

)

 

 

(44,099

)

 

 

(22,107

)

Equity in net (losses) income of investees, net of tax

 

 

(14

)

 

 

(44

)

 

 

14

 

 

 

(44

)

Net income

 

$

42,338

 

 

$

53,027

 

 

$

184,694

 

 

$

147,202

 

Per share information:

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

0.13

 

 

$

0.17

 

 

$

0.59

 

 

$

0.47

 

Net income per share, diluted

 

$

0.13

 

 

$

0.16

 

 

$

0.57

 

 

$

0.46

 

Weighted average shares, basic

 

 

315,207,216

 

 

 

313,069,132

 

 

 

314,820,679

 

 

 

311,915,808

 

Weighted average shares, diluted

 

 

333,789,636

 

 

 

332,825,186

 

 

 

333,724,425

 

 

 

332,144,893

 

BENTLEY SYSTEMS, INCORPORATED

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended

 

 

September 30,

 

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

Net income

 

$

184,694

 

 

$

147,202

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

48,397

 

 

 

52,787

 

Deferred income taxes

 

 

7,056

 

 

 

(14,632

)

Stock-based compensation expense

 

 

57,856

 

 

 

56,092

 

Deferred compensation plan

 

 

13,665

 

 

 

4,763

 

Amortization of deferred debt issuance costs

 

 

5,554

 

 

 

5,469

 

Change in fair value of derivative

 

 

5,570

 

 

 

(4,102

)

Foreign currency remeasurement (gain) loss

 

 

(126

)

 

 

3,198

 

Other

 

 

(1,733

)

 

 

2,464

 

Changes in assets and liabilities, net of effect from acquisitions:

 

 

 

 

Accounts receivable

 

 

34,588

 

 

 

56,065

 

Prepaid and other assets

 

 

(9,952

)

 

 

(1,246

)

Accounts payable, accruals, and other liabilities

 

 

36,356

 

 

 

33,437

 

Deferred revenues

 

 

(31,512

)

 

 

(17,688

)

Income taxes payable, net of prepaid income taxes

 

 

3,247

 

 

 

5,834

 

Net cash provided by operating activities

 

 

353,660

 

 

 

329,643

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment and investment in capitalized software

 

 

(8,499

)

 

 

(18,906

)

Acquisitions, net of cash acquired

 

 

(128,774

)

 

 

(23,110

)

Purchases of investments

 

 

(807

)

 

 

(11,352

)

Proceeds from investments

 

 

 

 

 

2,123

 

Other

 

 

2,400

 

 

 

 

Net cash used in investing activities

 

 

(135,680

)

 

 

(51,245

)

Cash flows from financing activities:

 

 

 

 

Proceeds from credit facilities

 

 

233,281

 

 

 

442,566

 

Payments of credit facilities

 

 

(207,608

)

 

 

(634,718

)

Repayments of term loan

 

 

(140,000

)

 

 

(3,750

)

Payments of contingent and non-contingent consideration

 

 

(3,022

)

 

 

(3,039

)

Payments of dividends

 

 

(53,985

)

 

 

(43,992

)

Proceeds from stock purchases under employee stock purchase plan

 

 

11,228

 

 

 

9,988

 

Proceeds from exercise of stock options

 

 

4,007

 

 

 

10,590

 

Payments for shares acquired including shares withheld for taxes

 

 

(11,199

)

 

 

(57,527

)

Repurchases of Class B common stock under approved program

 

 

(45,769

)

 

 

 

Other

 

 

(151

)

 

 

(137

)

Net cash used in financing activities

 

 

(213,218

)

 

 

(280,019

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(999

)

 

 

(3,100

)

Increase (decrease) in cash and cash equivalents

 

 

3,763

 

 

 

(4,721

)

Cash and cash equivalents, beginning of year

 

 

68,412

 

 

 

71,684

 

Cash and cash equivalents, end of period

 

$

72,175

 

 

$

66,963

 

BENTLEY SYSTEMS, INCORPORATED

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except share and per share data)

(unaudited)

 

Reconciliation of operating income to Adjusted OI w/SBC and to Adjusted operating income:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

Operating income

 

$

68,630

 

$

73,679

 

 

$

240,738

 

$

192,769

 

Amortization of purchased intangibles

 

 

11,448

 

 

12,678

 

 

 

35,159

 

 

39,038

 

Deferred compensation plan

 

 

6,983

 

 

(3,160

)

 

 

13,665

 

 

4,763

 

Acquisition expenses

 

 

2,454

 

 

2,980

 

 

 

6,782

 

 

15,278

 

Realignment expenses (income)

 

 

9

 

 

150

 

 

 

818

 

 

(1,800

)

Adjusted OI w/SBC

 

 

89,524

 

 

86,327

 

 

 

297,162

 

 

250,048

 

Stock-based compensation expense

 

 

15,895

 

 

18,039

 

 

 

57,088

 

 

54,907

 

Adjusted operating income

 

$

105,419

 

$

104,366

 

 

$

354,250

 

$

304,955

 

Reconciliation of net income to Adjusted net income:

 
   

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

$

 

EPS(1)

 

$

 

EPS(1)

 

$

 

EPS(1)

 

$

 

EPS(1)

Net income

 

$

42,338

 

 

$

0.13

 

 

$

53,027

 

 

$

0.16

 

 

$

184,694

 

 

$

0.57

 

 

$

147,202

 

 

$

0.46

 

Non-GAAP adjustments, prior to income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of purchased intangibles

 

 

11,448

 

 

 

0.03

 

 

 

12,678

 

 

 

0.04

 

 

 

35,159

 

 

 

0.11

 

 

 

39,038

 

 

 

0.12

 

Stock-based compensation expense

 

 

15,895

 

 

 

0.05

 

 

 

18,039

 

 

 

0.05

 

 

 

57,088

 

 

 

0.17

 

 

 

54,907

 

 

 

0.17

 

Deferred compensation plan

 

 

6,983

 

 

 

0.02

 

 

 

(3,160

)

 

 

(0.01

)

 

 

13,665

 

 

 

0.04

 

 

 

4,763

 

 

 

0.01

 

Acquisition expenses

 

 

2,454

 

 

 

0.01

 

 

 

2,980

 

 

 

0.01

 

 

 

6,782

 

 

 

0.02

 

 

 

15,278

 

 

 

0.05

 

Realignment expenses (income)

 

 

9

 

 

 

 

 

 

150

 

 

 

 

 

 

818

 

 

 

 

 

 

(1,800

)

 

 

(0.01

)

Other expense (income), net

 

 

5,087

 

 

 

0.02

 

 

 

(5,953

)

 

 

(0.02

)

 

 

(4,330

)

 

 

(0.01

)

 

 

(7,207

)

 

 

(0.02

)

Total non-GAAP adjustments, prior to income taxes

 

 

41,876

 

 

 

0.13

 

 

 

24,734

 

 

 

0.07

 

 

 

109,182

 

 

 

0.33

 

 

 

104,979

 

 

 

0.32

 

Income tax effect of non-GAAP adjustments

 

 

(6,756

)

 

 

(0.02

)

 

 

(5,306

)

 

 

(0.02

)

 

 

(11,600

)

 

 

(0.03

)

 

 

(19,303

)

 

 

(0.06

)

Equity in net losses (income) of investees, net of tax

 

 

14

 

 

 

 

 

 

44

 

 

 

 

 

 

(14

)

 

 

 

 

 

44

 

 

 

 

Adjusted net income(2)

 

$

77,472

 

 

$

0.24

 

 

$

72,499

 

 

$

0.22

 

 

$

282,262

 

 

$

0.86

 

 

$

232,922

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average shares, diluted

 

333,789,636

 

332,825,186

 

333,724,425

 

332,144,893

_________________________

(1)

 

Adjusted EPS was computed independently for each reconciling item presented; therefore, the sum of Adjusted EPS for each line item may not equal total Adjusted EPS due to rounding.

(2)

 

Adjusted EPS numerator includes $1,723 and $1,716 for the three months ended September 30, 2024 and 2023, respectively, and $5,164 and $5,157 for the nine months ended September 30, 2024 and 2023, respectively, related to interest expense, net of tax, attributable to the convertible senior notes using the if-converted method.

Reconciliation of cash flow from operations to Adjusted EBITDA:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2024

 

2023

 

2024

 

2023

Cash flow from operations

 

$

86,105

 

 

$

72,824

 

 

$

353,660

 

 

$

329,643

 

Cash interest

 

 

3,424

 

 

 

9,988

 

 

 

12,130

 

 

 

29,370

 

Cash taxes

 

 

10,176

 

 

 

10,704

 

 

 

33,023

 

 

 

28,703

 

Cash deferred compensation plan distributions

 

 

 

 

 

 

 

 

2,436

 

 

 

2,125

 

Cash acquisition expenses

 

 

1,829

 

 

 

4,487

 

 

 

5,571

 

 

 

19,777

 

Cash realignment costs

 

 

1,118

 

 

 

 

 

 

12,606

 

 

 

 

Changes in operating assets and liabilities

 

 

9,801

 

 

 

13,504

 

 

 

(44,718

)

 

 

(84,494

)

Other(1)

 

 

(2,452

)

 

 

(2,336

)

 

 

(7,220

)

 

 

(6,420

)

Adjusted EBITDA

 

$

110,001

 

 

$

109,171

 

 

$

367,488

 

 

$

318,704

 

_________________________

(1)

 

Includes receipts related to interest rate swap.

Reconciliation of total revenues and subscriptions revenues to total revenues and subscriptions revenues in constant currency:

 

 

 

Three Months Ended September 30, 2024

 

Three Months Ended September 30, 2023

 

 

Actual

 

Impact of
Foreign
Exchange at
2023 Rates

 

Constant
Currency

 

Actual

 

Impact of
Foreign
Exchange at
2023 Rates

 

Constant
Currency

Total revenues

 

$

335,173

 

$

(1,319

)

 

$

333,854

 

$

306,612

 

$

(535

)

 

$

306,077

Subscriptions revenues

 

$

303,239

 

$

(1,100

)

 

$

302,139

 

$

270,751

 

$

(569

)

 

$

270,182

 

 

Nine Months Ended September 30, 2024

 

Nine Months Ended September 30, 2023

 

 

Actual

 

Impact of
Foreign
Exchange at
2023 Rates

 

Constant
Currency

 

Actual

 

Impact of
Foreign
Exchange at
2023 Rates

 

Constant
Currency

Total revenues

 

$

1,003,273

 

$

(891

)

 

$

1,002,382

 

$

917,772

 

$

(1,014

)

 

$

916,758

Subscriptions revenues

 

$

907,772

 

$

(784

)

 

$

906,988

 

$

807,839

 

$

(1,042

)

 

$

806,797

Explanation of Non-GAAP and Other Financial Measures

Constant currency

Constant currency and constant currency growth rates are non-GAAP financial measures that present our results of operations excluding the estimated effects of foreign currency exchange rate fluctuations. A significant amount of our operations is conducted in foreign currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. We use constant currency and constant currency growth rates to evaluate the underlying performance of the business, and we believe it is helpful for investors to present operating results on a comparable basis period over period to evaluate its underlying performance.

In reporting period-over-period results, except for ARR as discussed further below, we calculate the effects of foreign currency fluctuations and constant currency information by translating current and prior period results on a transactional basis to our reporting currency using prior period average foreign currency exchange rates in which the transactions occurred.

Recurring revenues

Recurring revenues are the basis for our other revenue-related key business metrics. We believe this measure is useful in evaluating our ability to consistently retain and grow our revenues from accounts with revenues in the prior period (“existing accounts”).

Recurring revenues are subscriptions 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.

Annualized recurring revenues (“ARR”)

ARR is a key business metric that we believe is useful in evaluating the scale and growth of our business as well as to assist in the evaluation of underlying trends in our business. Furthermore, we believe ARR, considered in connection with our last twelve-month recurring revenues dollar-based net retention rate, is a leading indicator of revenue growth.

ARR is defined as the sum of the annualized value of our portfolio of contracts that produce recurring revenues 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, calculated using the spot foreign currency exchange rates. We believe that the last three months of recognized revenues, on an annualized basis, for our recurring software subscriptions with consumption measurement period durations of less than one year is a reasonable estimate of the annual revenues, given our consistently high retention rate and stability of usage under such subscriptions.

Constant currency ARR growth rate is the growth rate of ARR measured on a constant currency basis. In reporting period-over-period ARR growth rates in constant currency, we calculate constant currency growth rates by translating current and prior period ARR on a transactional basis to our reporting currency using current year budget exchange rates. Constant currency ARR growth rate from business performance excludes the ARR onboarding of our platform acquisitions and includes the impact from the ARR onboarding of programmatic acquisitions, which generally are immaterial, individually and in the aggregate. We believe these ARR growth rates are important metrics indicating the scale and growth of our business.

Last twelve-month recurring revenues dollar-based net retention rate

Last twelve-month recurring revenues dollar-based net retention rate is a key business metric that we believe is useful in evaluating our ability to consistently retain and grow our recurring revenues.

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 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. Related to our platform acquisitions, recurring revenues into new accounts will be captured as existing accounts starting with the second anniversary of the acquisition when such data conforms to the calculation methodology. This may cause variability in the comparison.

Adjusted operating income inclusive of stock-based compensation expense (“Adjusted OI w/SBC”)

Adjusted OI w/SBC is a non-GAAP financial measure and is used to measure the operational strength and performance of our business, as well as to assist in the evaluation of underlying trends in our business.

Adjusted OI w/SBC is our primary performance measure, which excludes certain expenses and charges, including the non-cash amortization expense resulting from the acquisition of intangible assets, as we believe these may not be indicative of the Company’s core business operating results. We intentionally include stock-based compensation expense in this measure as we believe it better captures the economic costs of our business.

Management uses this non-GAAP financial measure to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, to evaluate financial performance, and in our comparison of our financial results to those of other companies. It is also a significant performance measure in certain of our executive incentive compensation programs.

Adjusted OI w/SBC is defined as operating income adjusted for the following: amortization of purchased intangibles, expense (income) relating to deferred compensation plan liabilities, acquisition expenses, and realignment expenses (income), for the respective periods.

Adjusted OI w/SBC margin is calculated by dividing Adjusted OI w/SBC by total revenues.

Adjusted operating income

Adjusted operating income is a non-GAAP financial measure that we believe is useful to investors in making comparisons to other companies, although this measure may not be directly comparable to similar measures used by other companies.

Adjusted operating income is defined as operating income adjusted for the following: amortization of purchased intangibles, expense (income) relating to deferred compensation plan liabilities, acquisition expenses, realignment expenses (income), and stock-based compensation expense, for the respective periods.

Adjusted net income and Adjusted EPS

Adjusted net income and Adjusted EPS are non-GAAP financial measures presenting the earnings generated by our ongoing operations that we believe is useful to investors in making meaningful comparisons to other companies, although these measures may not be directly comparable to similar measures used by other companies, and period-over-period comparisons.

Adjusted net income is defined as net income adjusted for the following: amortization of purchased intangibles, stock-based compensation expense, expense (income) relating to deferred compensation plan liabilities, acquisition expenses, realignment expenses (income), other non-operating (income) expense, net, the tax effect of the above adjustments to net income, and equity in net (income) losses of investees, net of tax, for the respective periods. The income tax effect of non-GAAP adjustments was determined using the applicable rates in the taxing jurisdictions in which income or expense occurred, and represent both current and deferred income tax expense or benefit based on the nature of the non-GAAP adjustments, including the tax effects of non-cash stock-based compensation expense.

Adjusted EPS is calculated as Adjusted net income, less net income attributable to participating securities, plus interest expense, net of tax, attributable to the convertible senior notes using the if-converted method, if applicable, (numerator) divided by Adjusted weighted average shares, diluted (denominator). Adjusted weighted average shares, diluted is calculated by adding incremental shares related to the dilutive effect of convertible senior notes using the if-converted method, if applicable, to weighted average shares, diluted.

Adjusted EBITDA

Adjusted EBITDA is our liquidity measure in the context of conversion of Adjusted EBITDA to cash flow from operations (i.e., the ratio of GAAP cash flow from operations to Adjusted EBITDA). We believe this non-GAAP financial measure provides a meaningful measure of liquidity and a useful basis for assessing our ability to repay debt, make strategic acquisitions and investments, and return capital to investors.

Adjusted EBITDA is defined as cash flow from operations adjusted for the following: cash interest, cash taxes, cash deferred compensation plan distributions, cash acquisition expenses, cash realignment costs, changes in operating assets and liabilities, and other cash items (such as those related to our interest rate swap). From time to time, we may exclude from Adjusted EBITDA the impact of certain cash receipts or payments that affect period-to-period comparability.

Investors: Eric Boyer, IR@bentley.com

Source: Bentley Systems, Incorporated

FAQ

What were Bentley Systems' total revenues for Q3 2024?

Bentley Systems' total revenues for Q3 2024 were $335.2 million, up 9.3% year-over-year.

How much did Bentley Systems' subscription revenues grow in Q3 2024?

Subscription revenues grew by 12.0% to $303.2 million in Q3 2024.

What was Bentley Systems' ARR as of September 30, 2024?

Bentley Systems' ARR was $1,270.7 million as of September 30, 2024, representing a 12% growth year-over-year.

What was Bentley Systems' operating income margin for Q3 2024?

The operating income margin for Q3 2024 was 20.5%, down from 24.0% in the same period last year.

What was Bentley Systems' net income per diluted share for Q3 2024?

Net income per diluted share for Q3 2024 was $0.13, compared to $0.16 for the same period last year.

What were Bentley Systems' cash flows from operations for Q3 2024?

Cash flows from operations for Q3 2024 were $86.1 million, up from $72.8 million in the same period last year.

What strategic moves did Bentley Systems announce recently?

Bentley Systems announced a strategic partnership with Google and the acquisition of 3D geospatial company Cesium.

Bentley Systems, Incorporated Class B

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