Bentley Systems Announces First Quarter 2024 Results

www.bentley.com

© 2024 Bentley Systems, Incorporated. Bentley, the Bentley logo, AssetWise, Bentley Infrastructure Cloud, Bentley Open, 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)

 

 

 

 

 

 

 

March 31,

2024

 

December 31,

2023

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

141,601

 

 

$

68,412

 

Accounts receivable

 

 

284,200

 

 

 

302,501

 

Allowance for doubtful accounts

 

 

(9,723

)

 

 

(8,965

)

Prepaid income taxes

 

 

10,891

 

 

 

12,812

 

Prepaid and other current assets

 

 

46,716

 

 

 

44,797

 

Total current assets

 

 

473,685

 

 

 

419,557

 

Property and equipment, net

 

 

38,563

 

 

 

40,100

 

Operating lease right-of-use assets

 

 

36,454

 

 

 

38,476

 

Intangible assets, net

 

 

236,402

 

 

 

248,787

 

Goodwill

 

 

2,261,190

 

 

 

2,269,336

 

Investments

 

 

23,641

 

 

 

23,480

 

Deferred income taxes

 

 

208,152

 

 

 

212,831

 

Other assets

 

 

75,681

 

 

 

67,283

 

Total assets

 

$

3,353,768

 

 

$

3,319,850

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

23,568

 

 

$

18,094

 

Accruals and other current liabilities

 

 

539,775

 

 

 

457,348

 

Deferred revenues

 

 

242,037

 

 

 

253,785

 

Operating lease liabilities

 

 

11,178

 

 

 

11,645

 

Income taxes payable

 

 

11,275

 

 

 

9,491

 

Current portion of long-term debt

 

 

10,000

 

 

 

10,000

 

Total current liabilities

 

 

837,833

 

 

 

760,363

 

Long-term debt

 

 

1,425,445

 

 

 

1,518,403

 

Deferred compensation plan liabilities

 

 

93,402

 

 

 

88,181

 

Long-term operating lease liabilities

 

 

28,812

 

 

 

30,626

 

Deferred revenues

 

 

15,206

 

 

 

15,862

 

Deferred income taxes

 

 

10,391

 

 

 

9,718

 

Income taxes payable

 

 

7,337

 

 

 

7,337

 

Other liabilities

 

 

2,735

 

 

 

5,378

 

Total liabilities

 

 

2,421,161

 

 

 

2,435,868

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

2,980

 

 

 

2,963

 

Additional paid-in capital

 

 

1,154,137

 

 

 

1,127,234

 

Accumulated other comprehensive loss

 

 

(92,619

)

 

 

(84,987

)

Accumulated deficit

 

 

(132,595

)

 

 

(161,932

)

Non-controlling interest

 

 

704

 

 

 

704

 

Total stockholders’ equity

 

 

932,607

 

 

 

883,982

 

Total liabilities and stockholders’ equity

 

$

3,353,768

 

 

$

3,319,850

 

BENTLEY SYSTEMS, INCORPORATED

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

2024

 

 

 

2023

 

Revenues:

 

 

 

 

Subscriptions

 

$

307,089

 

 

$

277,845

 

Perpetual licenses

 

 

9,512

 

 

 

9,547

 

Subscriptions and licenses

 

 

316,601

 

 

 

287,392

 

Services

 

 

21,162

 

 

 

27,019

 

Total revenues

 

 

337,763

 

 

 

314,411

 

Cost of revenues:

 

 

 

 

Cost of subscriptions and licenses

 

 

40,218

 

 

 

40,931

 

Cost of services

 

 

21,612

 

 

 

26,253

 

Total cost of revenues

 

 

61,830

 

 

 

67,184

 

Gross profit

 

 

275,933

 

 

 

247,227

 

Operating expenses:

 

 

 

 

Research and development

 

 

68,371

 

 

 

67,800

 

Selling and marketing

 

 

54,386

 

 

 

52,141

 

General and administrative

 

 

46,482

 

 

 

46,807

 

Deferred compensation plan

 

 

5,799

 

 

 

4,146

 

Amortization of purchased intangibles

 

 

8,964

 

 

 

10,548

 

Total operating expenses

 

 

184,002

 

 

 

181,442

 

Income from operations

 

 

91,931

 

 

 

65,785

 

Interest expense, net

 

 

(6,520

)

 

 

(11,092

)

Other income, net

 

 

7,137

 

 

 

289

 

Income before income taxes

 

 

92,548

 

 

 

54,982

 

Provision for income taxes

 

 

(22,247

)

 

 

(9,492

)

Equity in net income of investees, net of tax

 

 

9

 

 

 

 

Net income

 

$

70,310

 

 

$

45,490

 

Per share information:

 

 

 

 

Net income per share, basic

 

$

0.22

 

 

$

0.15

 

Net income per share, diluted

 

$

0.22

 

 

$

0.14

 

Weighted average shares, basic

 

 

314,295,102

 

 

 

310,758,802

 

Weighted average shares, diluted

 

 

333,623,518

 

 

 

331,251,884

 

BENTLEY SYSTEMS, INCORPORATED

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

Net income

 

$

70,310

 

 

$

45,490

 

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

 

 

 

 

Depreciation and amortization

 

 

16,385

 

 

 

18,057

 

Deferred income taxes

 

 

5,302

 

 

 

(4,178

)

Stock-based compensation expense

 

 

19,658

 

 

 

19,484

 

Deferred compensation plan

 

 

5,799

 

 

 

4,146

 

Amortization of deferred debt issuance costs

 

 

1,823

 

 

 

1,823

 

Change in fair value of derivative

 

 

(2,790

)

 

 

4,489

 

Foreign currency remeasurement (gain) loss

 

 

(1,744

)

 

 

1,018

 

Other

 

 

1,099

 

 

 

(4,411

)

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

 

 

 

 

Accounts receivable

 

 

14,508

 

 

 

15,420

 

Prepaid and other assets

 

 

(5,321

)

 

 

12,137

 

Accounts payable, accruals, and other liabilities

 

 

85,071

 

 

 

53,127

 

Deferred revenues

 

 

(9,257

)

 

 

1,942

 

Income taxes payable, net of prepaid income taxes

 

 

4,126

 

 

 

7,679

 

Net cash provided by operating activities

 

 

204,969

 

 

 

176,223

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment and investment in capitalized software

 

 

(3,599

)

 

 

(4,284

)

Acquisitions, net of cash acquired

 

 

 

 

 

(10,299

)

Purchases of investments

 

 

(250

)

 

 

(6,178

)

Net cash used in investing activities

 

 

(3,849

)

 

 

(20,761

)

Cash flows from financing activities:

 

 

 

 

Proceeds from credit facilities

 

 

39,838

 

 

 

117,139

 

Payments of credit facilities

 

 

(131,866

)

 

 

(223,124

)

Repayments of term loan

 

 

(2,500

)

 

 

(1,250

)

Payments of contingent and non-contingent consideration

 

 

(451

)

 

 

(249

)

Payments of dividends

 

 

(17,871

)

 

 

(14,522

)

Proceeds from stock purchases under employee stock purchase plan

 

 

5,560

 

 

 

4,557

 

Proceeds from exercise of stock options

 

 

4,007

 

 

 

4,202

 

Payments for shares acquired including shares withheld for taxes

 

 

(8,099

)

 

 

(20,948

)

Repurchases of Class B common stock under approved program

 

 

(15,006

)

 

 

 

Other

 

 

(47

)

 

 

(46

)

Net cash used in financing activities

 

 

(126,435

)

 

 

(134,241

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(1,496

)

 

 

662

 

Increase in cash and cash equivalents

 

 

73,189

 

 

 

21,883

 

Cash and cash equivalents, beginning of year

 

 

68,412

 

 

 

71,684

 

Cash and cash equivalents, end of period

 

$

141,601

 

 

$

93,567

 

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

 

 

March 31,

 

 

2024

 

2023

Operating income

 

$

91,931

 

$

65,785

 

Amortization of purchased intangibles

 

 

12,190

 

 

13,735

 

Deferred compensation plan

 

 

5,799

 

 

4,146

 

Acquisition expenses

 

 

2,359

 

 

8,777

 

Realignment expenses (income)

 

 

66

 

 

(1,979

)

Adjusted OI w/SBC

 

 

112,345

 

 

90,464

 

Stock-based compensation expense

 

 

19,337

 

 

19,198

 

Adjusted operating income

 

$

131,682

 

$

109,662

 

Reconciliation of net income to Adjusted net income:

 

 

Three Months Ended

 

March 31,

 

2024

 

2023

 

$

 

EPS (1)

 

$

 

EPS (1)

Net income

$

70,310

 

 

$

0.22

 

 

$

45,490

 

 

$

0.14

 

Non-GAAP adjustments, prior to income taxes:

 

 

 

 

 

 

 

Amortization of purchased intangibles

 

12,190

 

 

 

0.04

 

 

 

13,735

 

 

 

0.04

 

Stock-based compensation expense

 

19,337

 

 

 

0.06

 

 

 

19,198

 

 

 

0.06

 

Deferred compensation plan

 

5,799

 

 

 

0.02

 

 

 

4,146

 

 

 

0.01

 

Acquisition expenses

 

2,359

 

 

 

0.01

 

 

 

8,777

 

 

 

0.03

 

Realignment expenses (income)

 

66

 

 

 

 

 

 

(1,979

)

 

 

(0.01

)

Other income, net

 

(7,137

)

 

 

(0.02

)

 

 

(289

)

 

 

 

Total non-GAAP adjustments, prior to income taxes

 

32,614

 

 

 

0.10

 

 

 

43,588

 

 

 

0.13

 

Income tax effect of non-GAAP adjustments

 

 

 

 

 

 

 

(7,389

)

 

 

(0.02

)

Equity in net income of investees, net of tax

 

(9

)

 

 

 

 

 

 

 

 

 

Adjusted net income (2)

$

102,915

 

 

$

0.31

 

 

$

81,689

 

 

$

0.25

 

 

 

 

 

 

 

 

 

Adjusted weighted average shares, diluted

333,623,518

 

331,251,884

____________________

(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 $1,717 for the three months ended March 31, 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

 

March 31,

 

 

2024

 

 

 

2023

 

Cash flow from operations

$

204,969

 

 

$

176,223

 

Cash interest

 

5,257

 

 

 

10,473

 

Cash taxes

 

11,543

 

 

 

6,033

 

Cash deferred compensation plan distributions

 

473

 

 

 

421

 

Cash acquisition expenses

 

1,807

 

 

 

11,053

 

Cash realignment costs

 

7,517

 

 

 

 

Changes in operating assets and liabilities

 

(93,332

)

 

 

(88,299

)

Other (1)

 

(2,357

)

 

 

(1,920

)

Adjusted EBITDA

$

135,877

 

 

$

113,984

 

____________________

(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 March 31, 2024

 

Three Months Ended March 31, 2023

 

Actual

 

Impact of

Foreign

Exchange at

2023 Rates

 

Constant

Currency

 

Actual

 

Impact of

Foreign

Exchange at

2023 Rates

 

Constant

Currency

Total revenues

$

337,763

 

$

(843

)

 

$

336,920

 

$

314,411

 

$

(125

)

 

$

314,286

Subscriptions revenues

$

307,089

 

$

(761

)

 

$

306,328

 

$

277,845

 

$

(142

)

 

$

277,703


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