Bentley Systems Announces Operating Results for the Third Quarter of 2023

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’ 5,000 colleagues generate annual revenues of more than $1 billion in 194 countries.

www.bentley.com

© 2023 Bentley Systems, Incorporated. Bentley, the Bentley logo, AssetWise, Bentley Infrastructure Cloud, Bentley Open, iTwin, MicroStation, ProjectWise, Seequent, SYNCHRO, and Virtuosity 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, 2023

 

December 31, 2022

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

66,963

 

 

$

71,684

 

Accounts receivable

 

 

243,488

 

 

 

296,376

 

Allowance for doubtful accounts

 

 

(8,312

)

 

 

(9,303

)

Prepaid income taxes

 

 

25,972

 

 

 

18,406

 

Prepaid and other current assets

 

 

46,128

 

 

 

38,732

 

Total current assets

 

 

374,239

 

 

 

415,895

 

Property and equipment, net

 

 

38,309

 

 

 

32,251

 

Operating lease right-of-use assets

 

 

41,434

 

 

 

40,249

 

Intangible assets, net

 

 

259,979

 

 

 

292,271

 

Goodwill

 

 

2,251,312

 

 

 

2,237,184

 

Investments

 

 

30,332

 

 

 

22,270

 

Deferred income taxes

 

 

61,664

 

 

 

52,636

 

Other assets

 

 

77,574

 

 

 

72,249

 

Total assets

 

$

3,134,843

 

 

$

3,165,005

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

26,389

 

 

$

15,176

 

Accruals and other current liabilities

 

 

403,428

 

 

 

362,048

 

Deferred revenues

 

 

211,815

 

 

 

226,955

 

Operating lease liabilities

 

 

11,430

 

 

 

14,672

 

Income taxes payable

 

 

18,879

 

 

 

4,507

 

Current portion of long-term debt

 

 

8,750

 

 

 

5,000

 

Total current liabilities

 

 

680,691

 

 

 

628,358

 

Long-term debt

 

 

1,580,752

 

 

 

1,775,696

 

Deferred compensation plan liabilities

 

 

79,537

 

 

 

77,014

 

Long-term operating lease liabilities

 

 

31,355

 

 

 

27,670

 

Deferred revenues

 

 

15,189

 

 

 

16,118

 

Deferred income taxes

 

 

43,530

 

 

 

51,235

 

Income taxes payable

 

 

7,317

 

 

 

8,105

 

Other liabilities

 

 

4,311

 

 

 

7,355

 

Total liabilities

 

 

2,442,682

 

 

 

2,591,551

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

2,952

 

 

 

2,890

 

Additional paid-in capital

 

 

1,108,816

 

 

 

1,030,466

 

Accumulated other comprehensive loss

 

 

(95,128

)

 

 

(89,740

)

Accumulated deficit

 

 

(325,183

)

 

 

(370,866

)

Non-controlling interest

 

 

704

 

 

 

704

 

Total stockholders’ equity

 

 

692,161

 

 

 

573,454

 

Total liabilities and stockholders’ equity

 

$

3,134,843

 

 

$

3,165,005

 

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,

 

 

2023

 

2022

 

2023

 

2022

Revenues:

 

 

 

 

 

 

 

 

Subscriptions

 

$

270,751

 

 

$

235,307

 

 

$

807,839

 

 

$

708,731

 

Perpetual licenses

 

 

11,887

 

 

 

9,460

 

 

 

33,152

 

 

 

31,213

 

Subscriptions and licenses

 

 

282,638

 

 

 

244,767

 

 

 

840,991

 

 

 

739,944

 

Services

 

 

23,974

 

 

 

23,565

 

 

 

76,781

 

 

 

72,190

 

Total revenues

 

 

306,612

 

 

 

268,332

 

 

 

917,772

 

 

 

812,134

 

Cost of revenues:

 

 

 

 

 

 

 

 

Cost of subscriptions and licenses

 

 

42,088

 

 

 

37,371

 

 

 

124,175

 

 

 

107,904

 

Cost of services

 

 

22,588

 

 

 

21,812

 

 

 

74,111

 

 

 

66,758

 

Total cost of revenues

 

 

64,676

 

 

 

59,183

 

 

 

198,286

 

 

 

174,662

 

Gross profit

 

 

241,936

 

 

 

209,149

 

 

 

719,486

 

 

 

637,472

 

Operating expense (income):

 

 

 

 

 

 

 

 

Research and development

 

 

65,465

 

 

 

63,827

 

 

 

203,382

 

 

 

189,966

 

Selling and marketing

 

 

53,757

 

 

 

46,114

 

 

 

160,262

 

 

 

141,676

 

General and administrative

 

 

42,678

 

 

 

37,794

 

 

 

128,743

 

 

 

128,981

 

Deferred compensation plan

 

 

(3,160

)

 

 

(4,576

)

 

 

4,763

 

 

 

(21,873

)

Amortization of purchased intangibles

 

 

9,517

 

 

 

10,446

 

 

 

29,567

 

 

 

30,869

 

Total operating expenses

 

 

168,257

 

 

 

153,605

 

 

 

526,717

 

 

 

469,619

 

Income from operations

 

 

73,679

 

 

 

55,544

 

 

 

192,769

 

 

 

167,853

 

Interest expense, net

 

 

(10,047

)

 

 

(9,134

)

 

 

(30,623

)

 

 

(23,521

)

Other income, net

 

 

5,953

 

 

 

932

 

 

 

7,207

 

 

 

14,793

 

Income before income taxes

 

 

69,585

 

 

 

47,342

 

 

 

169,353

 

 

 

159,125

 

Provision for income taxes

 

 

(16,514

)

 

 

(9,664

)

 

 

(22,107

)

 

 

(8,221

)

Loss from investments accounted for using the equity method, net of tax

 

 

(44

)

 

 

(681

)

 

 

(44

)

 

 

(1,846

)

Net income

 

$

53,027

 

 

$

36,997

 

 

$

147,202

 

 

$

149,058

 

Per share information:

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

0.17

 

 

$

0.12

 

 

$

0.47

 

 

$

0.48

 

Net income per share, diluted

 

$

0.16

 

 

$

0.12

 

 

$

0.46

 

 

$

0.46

 

Weighted average shares, basic

 

 

313,069,132

 

 

 

310,116,104

 

 

 

311,915,808

 

 

 

308,959,801

 

Weighted average shares, diluted

 

 

332,825,186

 

 

 

325,170,383

 

 

 

332,144,893

 

 

 

332,077,834

 

BENTLEY SYSTEMS, INCORPORATED

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Nine Months Ended

 

 

September 30,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

Net income

 

$

147,202

 

 

$

149,058

 

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

 

 

 

 

Depreciation and amortization

 

 

52,787

 

 

 

53,644

 

Deferred income taxes

 

 

(14,632

)

 

 

(13,670

)

Stock-based compensation expense

 

 

56,092

 

 

 

51,359

 

Deferred compensation plan

 

 

4,763

 

 

 

(21,873

)

Amortization of deferred debt issuance costs

 

 

5,469

 

 

 

5,468

 

Change in fair value of derivative

 

 

(4,102

)

 

 

(29,318

)

Foreign currency remeasurement loss

 

 

3,198

 

 

 

14,445

 

Other

 

 

2,464

 

 

 

4,193

 

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

 

 

 

 

Accounts receivable

 

 

56,065

 

 

 

12,550

 

Prepaid and other assets

 

 

(1,246

)

 

 

7,779

 

Accounts payable, accruals, and other liabilities

 

 

33,437

 

 

 

28,765

 

Deferred revenues

 

 

(17,688

)

 

 

(26,725

)

Income taxes payable, net of prepaid income taxes

 

 

5,834

 

 

 

2,523

 

Net cash provided by operating activities

 

 

329,643

 

 

 

238,198

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment and investment in capitalized software

 

 

(18,906

)

 

 

(12,982

)

Proceeds from sale of aircraft

 

 

 

 

 

2,380

 

Acquisitions, net of cash acquired

 

 

(23,110

)

 

 

(719,539

)

Purchases of investments

 

 

(11,352

)

 

 

(10,304

)

Proceeds from investments

 

 

2,123

 

 

 

 

Net cash used in investing activities

 

 

(51,245

)

 

 

(740,445

)

Cash flows from financing activities:

 

 

 

 

Proceeds from credit facilities

 

 

442,566

 

 

 

753,376

 

Payments of credit facilities

 

 

(634,718

)

 

 

(408,714

)

Repayments of term loan

 

 

(3,750

)

 

 

(3,750

)

Payments of contingent and non-contingent consideration

 

 

(3,039

)

 

 

(6,996

)

Payments of dividends

 

 

(43,992

)

 

 

(25,828

)

Proceeds from stock purchases under employee stock purchase plan

 

 

9,988

 

 

 

10,335

 

Proceeds from exercise of stock options

 

 

10,590

 

 

 

6,855

 

Payments for shares acquired including shares withheld for taxes

 

 

(57,527

)

 

 

(42,213

)

Repurchases of Class B Common Stock under approved program

 

 

 

 

 

(28,250

)

Other

 

 

(137

)

 

 

(123

)

Net cash (used in) provided by financing activities

 

 

(280,019

)

 

 

254,692

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(3,100

)

 

 

(8,926

)

Decrease in cash and cash equivalents

 

 

(4,721

)

 

 

(256,481

)

Cash and cash equivalents, beginning of year

 

 

71,684

 

 

 

329,337

 

Cash and cash equivalents, end of period

 

$

66,963

 

 

$

72,856

 

BENTLEY SYSTEMS, INCORPORATED

Reconciliation of GAAP to Non-GAAP 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,

 

 

2023

 

2022

 

2023

 

2022

Operating income

 

$

73,679

 

 

$

55,544

 

 

$

192,769

 

 

$

167,853

 

Amortization of purchased intangibles

 

 

12,678

 

 

 

13,575

 

 

 

39,038

 

 

 

40,174

 

Deferred compensation plan

 

 

(3,160

)

 

 

(4,576

)

 

 

4,763

 

 

 

(21,873

)

Acquisition expenses

 

 

2,980

 

 

 

3,203

 

 

 

15,278

 

 

 

21,056

 

Realignment expenses (income)

 

 

150

 

 

 

(971

)

 

 

(1,800

)

 

 

2,223

 

Adjusted OI w/SBC

 

 

86,327

 

 

 

66,775

 

 

 

250,048

 

 

 

209,433

 

Stock-based compensation expense

 

 

18,039

 

 

 

18,626

 

 

 

54,907

 

 

 

50,974

 

Adjusted operating income

 

$

104,366

 

 

$

85,401

 

 

$

304,955

 

 

$

260,407

 

Reconciliation of net income to Adjusted net income:

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

2023

 

2022

 

2023

 

2022

 

$

 

EPS (1)

 

$

 

EPS (1)

 

$

 

EPS (1)

 

$

 

EPS (1)

Net income

$

53,027

 

 

$

0.16

 

 

$

36,997

 

 

$

0.12

 

 

$

147,202

 

 

$

0.46

 

 

$

149,058

 

 

$

0.46

 

Non-GAAP adjustments, prior to income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of purchased intangibles

 

12,678

 

 

 

0.04

 

 

 

13,575

 

 

 

0.04

 

 

 

39,038

 

 

 

0.12

 

 

 

40,174

 

 

 

0.12

 

Stock-based compensation expense

 

18,039

 

 

 

0.05

 

 

 

18,626

 

 

 

0.06

 

 

 

54,907

 

 

 

0.17

 

 

 

50,974

 

 

 

0.15

 

Deferred compensation plan

 

(3,160

)

 

 

(0.01

)

 

 

(4,576

)

 

 

(0.01

)

 

 

4,763

 

 

 

0.01

 

 

 

(21,873

)

 

 

(0.07

)

Acquisition expenses

 

2,980

 

 

 

0.01

 

 

 

3,203

 

 

 

0.01

 

 

 

15,278

 

 

 

0.05

 

 

 

21,056

 

 

 

0.06

 

Realignment expenses (income)

 

150

 

 

 

 

 

 

(971

)

 

 

 

 

 

(1,800

)

 

 

(0.01

)

 

 

2,223

 

 

 

0.01

 

Other income, net

 

(5,953

)

 

 

(0.02

)

 

 

(932

)

 

 

 

 

 

(7,207

)

 

 

(0.02

)

 

 

(14,793

)

 

 

(0.04

)

Total non-GAAP adjustments, prior to income taxes

 

24,734

 

 

 

0.07

 

 

 

28,925

 

 

 

0.09

 

 

 

104,979

 

 

 

0.32

 

 

 

77,761

 

 

 

0.23

 

Income tax effect of non-GAAP adjustments

 

(5,306

)

 

 

(0.02

)

 

 

(5,342

)

 

 

(0.02

)

 

 

(19,303

)

 

 

(0.06

)

 

 

(13,832

)

 

 

(0.04

)

Loss from investments accounted for using the equity method, net of tax

 

44

 

 

 

 

 

 

681

 

 

 

 

 

 

44

 

 

 

 

 

 

1,846

 

 

 

0.01

 

Adjusted net income (2)

$

72,499

 

 

$

0.22

 

 

$

61,261

 

 

$

0.19

 

 

$

232,922

 

 

$

0.72

 

 

$

214,833

 

 

$

0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average shares, diluted (3)

332,825,186

 

332,079,181

 

332,144,893

 

332,077,834

________________________

(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 $1,716 for both the three months ended September 30, 2023 and 2022, and $5,157 and $5,116 for the nine months ended September 30, 2023 and 2022, respectively, related to interest expense, net of tax, attributable to the convertible senior notes using the if‑converted method.

(3)

Adjusted weighted average shares, diluted includes incremental shares, which were considered anti-dilutive on a GAAP basis, of 6,908,798 shares for the three months ended September 30, 2022 related to the dilutive effect of 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,

 

2023

 

2022

 

2023

 

2022

Cash flow from operations

$

72,824

 

 

$

69,468

 

 

$

329,643

 

 

$

238,198

 

Cash interest

 

9,988

 

 

 

7,119

 

 

 

29,370

 

 

 

17,647

 

Cash taxes

 

10,704

 

 

 

7,972

 

 

 

28,703

 

 

 

18,502

 

Cash deferred compensation plan distributions

 

 

 

 

 

 

 

2,125

 

 

 

7,336

 

Cash acquisition expenses

 

4,487

 

 

 

420

 

 

 

19,777

 

 

 

23,169

 

Changes in operating assets and liabilities

 

13,504

 

 

 

5,513

 

 

 

(84,494

)

 

 

(30,500

)

Other (1)

 

(2,336

)

 

 

(752

)

 

 

(6,420

)

 

 

(475

)

Adjusted EBITDA

$

109,171

 

 

$

89,740

 

 

$

318,704

 

 

$

273,877

 

________________________

(1)

Includes receipts related to interest rate swap.


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



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise