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, 2020, and 2021 financial outlook.
Fourth Quarter 2020 Financial Results:
- Total revenues were $219.6 million, up 8.2%
year-over-year;
- Subscriptions revenues were $178.3 million, up 9.4%
year-over-year;
- Last twelve-month recurring revenues were $696.7 million, up
10.4% year-over-year;
- Last twelve-month recurring revenues dollar-based net retention
rate calculated under Topic 605 was 108%, the same as for the same
period last year;
- Last twelve-month account retention rate was 98% (calculated
under Topics 606 and 605 for comparability), compared to 98%
(calculated under Topic 605) for the same period last year;
- Annualized Recurring Revenue (“ARR”) was $752.7 million as of
December 31, 2020, representing a constant currency ARR growth rate
of 8% from December 31, 2019;
- GAAP operating income was $54.3 million, compared to $42.7
million for the same period last year;
- GAAP net income was $51.9 million, compared to $36.3 million
for the same period last year. GAAP net income per diluted share
was $0.17, compared to $0.13 for the same period last year;
- Adjusted Net Income was $52.1 million, compared to $35.8
million for the same period last year. Adjusted Net Income per
diluted share was $0.17 compared to $0.12 for the same period last
year;
- Adjusted EBITDA was $77.1 million, compared to $56.0 million
for the same period last year. Adjusted EBITDA margin was 35.1%,
compared to 27.6% for the same period last year;
- Cash flow from operations was $82.3 million, compared to $52.5
million for the same period last year.
Full Year 2020 Financial Results:
- Total revenues were $801.5 million, up 8.8%
year-over-year;
- Subscriptions revenues were $679.3 million, up 11.7%
year-over-year;
- GAAP operating income was $150.2 million, compared to $141.9
million for the same period last year;
- GAAP net income was $126.5 million, compared to $103.1 million
for the same period last year. GAAP net income per diluted share
was $0.42, compared to $0.35 for the same period last year;
- Adjusted Net Income was $192.7 million, compared to $135.0
million for the same period last year. Adjusted Net Income per
diluted share was $0.64 compared to $0.46 for the same period last
year;
- Adjusted EBITDA was $266.2 million, compared to $188.1 million
for the same period last year. Adjusted EBITDA margin was 33.2%,
compared to 25.5% for the same period last year;
- Cash flow from operations was $258.3 million, compared to
$170.8 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.”
“The fourth quarter and full-year 2020 concluded to our general
satisfaction, given the enduring pandemic conditions in most of the
world. Our overall application usage and new business generation
essentially rebounded by year end to pre-pandemic levels, and our
growth in ARR and especially recurring revenues underscore our
long-term momentum and predictability. The commercial / facilities
and industrial / resources sectors remain weaker, but on balance we
believe we are well positioned, by our diversification and
market-leading emphasis on public works / utilities, for 2021’s
broadly anticipated infrastructure investment resurgence,” said
Greg Bentley, CEO.
Mr. Bentley continued, “While we expect that 2020’s evident
acceleration in “going digital” for infrastructure engineering will
continue, our first-ever annual financial outlook naturally
reflects conservative assumptions about the timing of cyclical
economic recovery. While we are prepared and inclined to invest
resolutely in the “generational” opportunity for infrastructure
digital twins, our 2021 plans and outlook nevertheless give
appropriate precedence to our commitment and ability to steadily
improve our sustainable operating margins, indefinitely.”
Fourth Quarter 2020 Financial Developments:
- In November 2020, Bentley Systems completed its follow‑on
public offering of 11.5 million shares of its Class B Common Stock
at a price of $32.00 per share (the “Follow-On Offering”). The
Company sold 9.6 million shares of Class B Common Stock (inclusive
of 1.5 million shares sold upon the exercise by the underwriters of
their option to purchase additional shares of the Company’s Class B
Common Stock). The selling stockholders sold 1.9 million shares of
Class B Common Stock. The Company received net proceeds of $294.4
million after deducting expenses of $12.9 million. The Company did
not receive any of the proceeds from the sale of the Class B Common
Stock sold by the selling stockholders.
- For the three months and year ended December 31, 2020, the
Company reported an effective tax rate of 23.7% and 23.0%
respectively.
Recent Financial Developments:
- In January 2021, Bentley Systems entered into an amended and
restated credit agreement, which matures on November 15, 2025 (the
“New Credit Facility”). Upon entry into the New Credit Facility,
the Company obtained a $850.0 million senior secured revolving
facility and refinanced all indebtedness outstanding under its
former Credit Facility.
- In January 2021, Bentley Systems completed an offering of
$690.0 million of 0.125% convertible senior notes due 2026 (the
“2026 Notes”). Interest will accrue from January 26, 2021 and will
be payable twice a year with the first payment due on July 15,
2021. The Company used $25.5 million of the net proceeds from the
sale of the 2026 Notes to pay the cost of the capped call
transactions and approximately $250.5 million to repay outstanding
indebtedness under the former Credit Facility and to pay related
fees and expenses. The Company intends to use the remainder of the
net proceeds from the sale of the 2026 Notes for general corporate
purposes, which may include funding future acquisitions. The
Company may apply all or a portion of the net proceeds for the
acquisition of businesses, software solutions, and technologies
that the Company believes are complementary to its own, although
the Company has no agreements, commitments, or understandings with
respect to any specific material acquisition at this time. The
Company has not allocated any specific portion of the net proceeds
to any particular purpose and its management will have the
discretion to allocate the proceeds as it determines. The Company
incurred $18.0 million of expenses in connection with the 2026
Notes offering consisting of the payment of underwriting discounts
and commissions, professional fees, and other expenses.
2021 Financial Outlook
The Company is providing the following outlook for the year
ending December 31, 2021. The 2021 guidance herein is premised on
COVID-19 pandemic-related business impacts generally abating
gradually by year end, however, the ultimate impacts of COVID-19 on
the Company's financial outlook remain uncertain.
- Total revenues in the range of $895 million to $920 million,
representing growth of 11.7% to 14.8%;
- Constant currency ARR growth rate of 8% to 10%;
- Adjusted EBITDA in the range of $285 million to $295 million,
representing growth of 7.1% to 10.8%, and Adjusted EBITDA margin of
approximately 32%;
- Its effective tax rate to be approximately 20%.
The Company does not provide quarterly guidance, but will update
its full-year financial outlook when announcing quarterly operating
results during 2021 to the extent expectations materially
change.
The 2021 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 2021 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, the Company’s
results may not fall within the ranges contained in its outlook.
The Company uses these forward-looking measures to evaluate its
ongoing operations and for internal planning and forecasting
purposes.
Earnings Call Details
Bentley Systems will host a live Zoom Video Webinar on March 2,
2021 at 8:30 a.m. Eastern Time to discuss financial and operating
results for its fourth quarter and full year ended December 31,
2020, and 2021 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_i4XEjuozSPicl1dXJtnsCg.
Alternatively, the event can be accessed from the Events &
Presentations page on Bentley Systems’ Investor Relations website
at https://investors.bentley.com. Presentation materials will be
posted prior to the webinar on Bentley Systems' Investor Relations
website. 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.
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, and industrial facilities. Our offerings
include MicroStation-based applications for modeling and
simulation, ProjectWise for project delivery, AssetWise for asset
and network performance, and the iTwin platform for infrastructure
digital twins. Bentley Systems employs more than 4,000 colleagues
and generates annual revenues of more than $800 million in 172
countries. www.bentley.com.
© 2021 Bentley Systems, Incorporated. Bentley, the Bentley logo,
AssetWise, E7, iTwin, MicroStation, ProjectWise, 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.
Forward-Looking Statements
The forward-looking statements contained in this earnings
release reflect Bentley Systems’ expectations as of today’s date.
Given the number of risk factors, uncertainties, and assumptions
discussed below, actual results may differ materially.
Any statements made in this earnings release that are not
statements of historical fact, including statements about our 2021
financial outlook and our beliefs and expectations, are
forward-looking statements and should be evaluated as such.
Forward-looking statements include information concerning possible
or assumed future results of operations, business plans, and
strategies. Forward-looking statements are based on Bentley Systems
management’s beliefs, as well as assumptions made by, and
information currently available to, them. Because such statements
are based on expectations as to future financial and operating
results and are not statements of fact, actual results may differ
materially from those projected. Factors which may cause actual
results to differ materially from current expectations include, but
are not limited, to macroeconomic conditions, pandemic
consequences, and other factors described under the heading “Risk
Factors” in the Company’s Annual Report on Form 10‑K for the year
ended December 31, 2020, and the Company’s subsequent filings with
the SEC. Copies of each filing may be obtained from the Company or
the SEC on their respective websites. All forward-looking
statements reflect our beliefs and assumptions only as of the date
of this press release. We undertake no obligation to update
forward-looking statements to reflect future events or
circumstances.
Definitions of Certain Key Business Metrics
Definitions of the non‑GAAP financial measures used in this
earnings 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. The recurring revenues dollar-based net
retention rate for the year ended December 31, 2020 was calculated
under Topic 606 and continues to be presented pursuant to Topic 605
for comparability purposes. Prior to the year ended December 31,
2020, the recurring revenues dollar-based net retention rate was
calculated using revenues recognized pursuant to Topic 605 for all
periods in order to enhance comparability during our transition to
Topic 606 as we did not have all information that was necessary to
calculate recurring revenues dollar-based net retention rate
pursuant to Topic 606 for earlier periods.
- 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. The account retention rate
for the year ended December 31, 2020 was calculated under Topic 606
and continues to be presented pursuant to Topic 605 for
comparability purposes. Prior to the year ended December 31, 2020,
the account retention rate was calculated using revenues recognized
pursuant to Topic 605 for all periods in order to enhance
comparability during our transition to Topic 606 as we did not have
all information that was necessary to calculate account retention
rate pursuant to Topic 606 for earlier periods.
- 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-plane 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 and liquidity. 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, prospects, and liquidity
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
SEC.
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, 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, acquisition
expenses, realignment expenses, and expenses associated with 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, acquisition expenses,
realignment expenses, expenses associated with IPO, other
non-operating income and expense (primarily foreign exchange gain
(loss)), net, the tax effect of the above adjustments to net
income, and 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
outstanding;
- Adjusted EBITDA is defined as net income adjusted for interest
expense, net, provision for income taxes, depreciation and
amortization, stock-based compensation, acquisition expenses,
realignment expenses, expenses associated with IPO, other
non-operating income and expense (primarily foreign exchange gain
(loss)), net, and loss from investment accounted for using the
equity method, net of tax;
- 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.
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Balance
Sheets
(in thousands)
(unaudited)
December 31,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
122,006
$
121,101
Accounts receivable
195,782
211,775
Allowance for doubtful
accounts
(5,759
)
(7,274
)
Prepaid income taxes
3,535
4,543
Prepaid and other current
assets
24,694
23,413
Total current assets
340,258
353,558
Property and equipment, net
28,414
29,632
Operating lease right-of-use
assets
46,128
—
Intangible assets, net
45,627
46,313
Goodwill
581,174
480,065
Investments
5,691
1,725
Deferred income taxes
39,224
51,068
Other assets
39,519
32,238
Total assets
$
1,126,035
$
994,599
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
16,492
$
17,669
Accruals and other current
liabilities
226,793
167,517
Deferred revenues
202,294
204,991
Operating lease liabilities
16,610
—
Income taxes payable
3,366
2,236
Total current liabilities
465,555
392,413
Long-term debt
246,000
233,750
Long-term operating lease
liabilities
31,767
—
Deferred revenues
7,020
8,154
Deferred income taxes
10,849
8,260
Income taxes payable
7,883
8,140
Other liabilities
15,362
9,263
Total liabilities
784,436
659,980
Stockholders’ equity:
Common stock
2,722
2,548
Additional paid-in capital
741,113
408,667
Accumulated other comprehensive
loss
(26,233
)
(23,927
)
Accumulated deficit
(376,003
)
(52,669
)
Total stockholders’ equity
341,599
334,619
Total liabilities and
stockholders’ equity
$
1,126,035
$
994,599
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,
2020
2019
2020
2019
Revenues:
Subscriptions
$
178,262
$
162,962
$
679,273
$
608,300
Perpetual licenses
21,362
21,438
57,382
59,693
Subscriptions and licenses
199,624
184,400
736,655
667,993
Services
19,943
18,522
64,889
68,661
Total revenues
219,567
202,922
801,544
736,654
Cost of revenues:
Cost of subscriptions and licenses
29,337
23,377
95,803
71,578
Cost of services
21,226
16,524
71,352
72,572
Total cost of revenues
50,563
39,901
167,155
144,150
Gross profit
169,004
163,021
634,389
592,504
Operating expenses:
Research and development
45,945
46,935
185,515
183,552
Selling and marketing
36,240
43,405
143,791
155,294
General and administrative
28,176
26,165
113,451
97,580
Amortization of purchased intangibles
4,368
3,811
15,352
14,213
Expenses associated with initial
public offering
—
—
26,130
—
Total operating expenses
114,729
120,316
484,239
450,639
Income from operations
54,275
42,705
150,150
141,865
Interest expense, net
(3,026
)
(1,696
)
(7,476
)
(8,199
)
Other income (expense), net
18,190
8,496
24,946
(5,557
)
Income before income taxes
69,439
49,505
167,620
128,109
Provision for income taxes
(16,480
)
(11,979
)
(38,625
)
(23,738
)
Loss from investment accounted for using
the equity method, net of tax
(1,027
)
(1,275
)
(2,474
)
(1,275
)
Net income
51,932
36,251
126,521
103,096
Less: Net income attributable to
participating securities
(230
)
2
(234
)
(8
)
Net income attributable to Class A and
Class B common stockholders
$
51,702
$
36,253
$
126,287
$
103,088
Per share information:
Net income per share, basic
$
0.17
$
0.13
$
0.44
$
0.36
Net income per share, diluted
$
0.17
$
0.13
$
0.42
$
0.35
Weighted average shares
outstanding, basic
297,192,775
285,349,414
289,863,272
284,625,642
Weighted average shares outstanding, diluted
309,096,405
289,242,127
299,371,129
293,796,707
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Year Ended December
31,
2020
2019
Cash flows from operating
activities:
Net income
$
126,521
$
103,096
Adjustments to reconcile net
income to net cash provided by operating activities:
Depreciation and amortization
36,117
32,160
Bad debt (recovery) allowance
(1,000
)
862
Deferred income taxes
16,246
732
Deferred compensation plan
activity
3,706
3,994
Stock-based compensation
expense
32,114
8,091
Amortization and write-off of
deferred debt issuance costs
985
553
Change in fair value of
derivative
(347
)
159
Change in fair value of
contingent consideration
(1,340
)
62
Foreign currency remeasurement
(gain) loss
(24,502
)
5,311
Loss from investment accounted
for using the equity method, net of tax
2,474
1,275
Changes in assets and
liabilities, net of effect from acquisitions:
Accounts receivable
12,388
(21,152
)
Prepaid and other assets
11,705
(668
)
Accounts payable, accruals and
other liabilities
47,656
41,880
Deferred revenues
(565
)
(268
)
Income taxes payable
(3,818
)
(5,314
)
Net cash provided by operating
activities
258,340
170,773
Cash flows from investing
activities:
Purchases of property and
equipment and investment in capitalized software
(15,496
)
(15,804
)
Capitalization of costs to
translate software products into foreign languages
(951
)
(835
)
Acquisitions, net of cash
acquired of $5,266 and $2,523, respectively
(93,032
)
(34,054
)
Other investing activities
(7,854
)
(3,000
)
Net cash used in investing
activities
(117,333
)
(53,693
)
Cash flows from financing
activities:
Proceeds from credit
facilities
550,875
191,250
Payments of credit facilities
(538,625
)
(216,250
)
Proceeds from term loan
125,000
—
Repayment of term loan
(125,000
)
—
Payments of debt issuance
costs
(432
)
—
Payments of financing leases
(189
)
—
Payments of acquisition debt and
other consideration
(3,425
)
(11,029
)
Proceeds from Class B Common Stock
follow-on offering, net of underwriters’ discounts and
commissions
295,802
—
Payments of Class B Common Stock
follow-on offering expenses
(1,373
)
—
Payments of dividends
(422,646
)
(24,989
)
Payments for shares acquired
including shares withheld for taxes
(83,975
)
(24,166
)
Proceeds from Common Stock
Purchase Agreement
58,349
4,510
Proceeds from exercise of stock
options
9,128
3,626
Net cash used in financing
activities
(136,511
)
(77,048
)
Effect of exchange rate changes
on cash and cash equivalents
(3,591
)
(114
)
Increase in cash and cash
equivalents
905
39,918
Cash and cash equivalents,
beginning of year
121,101
81,183
Cash and cash equivalents, end of
year
$
122,006
$
121,101
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP Measures
For the Three Months and Year
Ended December 31, 2020 and 2019
(in thousands)
(unaudited)
Reconciliation of net income to Adjusted
EBITDA:
Three Months Ended
Year Ended
December 31,
December 31,
2020
2019
2020
2019
Net income
$
51,932
$
36,251
$
126,521
$
103,096
Interest expense, net
3,026
1,696
7,476
8,199
Provision for income taxes
16,480
11,979
38,625
23,738
Depreciation and amortization
10,281
8,826
36,117
32,160
Stock-based compensation
9,354
2,040
32,114
8,091
Acquisition expenses
3,168
2,494
11,666
6,597
Realignment expenses
10
(92
)
10,022
(584
)
Expenses associated with IPO
—
—
26,130
—
Other (income) expense, net
(18,190
)
(8,496
)
(24,946
)
5,557
Loss from investment accounted
for using the equity method, net of tax
1,027
1,275
2,474
1,275
Adjusted EBITDA
$
77,088
$
55,973
$
266,199
$
188,129
Reconciliation of net income to Adjusted
Net Income:
Three Months Ended
Year Ended
December 31,
December 31,
2020
2019
2020
2019
Net income
$
51,932
$
36,251
$
126,521
$
103,096
Non-GAAP adjustments, prior to
income taxes:
Amortization of purchased
intangibles and developed technologies
6,027
5,032
20,721
18,731
Stock-based compensation
9,354
2,040
32,114
8,091
Acquisition expenses
3,168
2,494
11,666
6,597
Realignment expenses
10
(92
)
10,022
(584
)
Expenses associated with IPO
—
—
26,130
—
Other (income) expense, net
(18,190
)
(8,496
)
(24,946
)
5,557
Total non-GAAP adjustments, prior
to income taxes
369
978
75,707
38,392
Income tax effect of non-GAAP
adjustments
(1,239
)
(2,733
)
(12,024
)
(7,714
)
Loss from investment accounted
for using the equity method, net of tax
1,027
1,275
2,474
1,275
Adjusted Net Income
$
52,089
$
35,771
$
192,678
$
135,049
Reconciliation of GAAP Financial Statement
Line Items to Non-GAAP Adjusted Financial Statement Line Items:
Three Months Ended
Year Ended
December 31
December 31
2020
2019
2020
2019
Cost of subscriptions and
licenses
$
29,337
$
23,377
$
95,803
$
71,578
Amortization of purchased intangibles and
developed technologies
(1,659
)
(1,221
)
(5,369
)
(4,518
)
Stock-based compensation
(17
)
(55
)
(925
)
(115
)
Realignment expenses
8
—
(42
)
51
Adjusted cost of subscriptions
and licenses
$
27,669
$
22,101
$
89,467
$
66,996
Cost of services
$
21,226
$
16,524
$
71,352
$
72,572
Stock-based compensation
(156
)
(159
)
(2,857
)
(522
)
Acquisition expenses
(866
)
(22
)
(1,916
)
(22
)
Realignment expenses
126
—
(1,422
)
185
Adjusted cost of services
$
20,330
$
16,343
$
65,157
$
72,213
Research and development
$
45,945
$
46,935
$
185,515
$
183,552
Stock-based compensation
(3,951
)
(801
)
(11,769
)
(3,107
)
Acquisition expenses
(1,492
)
(1,653
)
(6,605
)
(4,736
)
Realignment expenses
62
92
(848
)
171
Adjusted research and
development
$
40,564
$
44,573
$
166,293
$
175,880
Selling and marketing
$
36,240
$
43,405
$
143,791
$
155,294
Stock-based compensation
(652
)
(453
)
(6,259
)
(2,210
)
Acquisition expenses
(75
)
(76
)
(318
)
(240
)
Realignment expenses
(762
)
—
(5,945
)
263
Adjusted selling and
marketing
$
34,751
$
42,876
$
131,269
$
153,107
General and administrative
$
28,176
$
26,165
$
113,451
$
97,580
Stock-based compensation
(4,578
)
(572
)
(10,304
)
(2,137
)
Acquisition expenses
(617
)
(501
)
(2,228
)
(1,047
)
Realignment expenses
556
—
(1,765
)
(86
)
Adjusted general and
administrative
$
23,537
$
25,092
$
99,154
$
94,310
Income from operations
$
54,275
$
42,705
$
150,150
$
141,865
Amortization of purchased intangibles and
developed technologies
6,027
5,032
20,721
18,731
Stock-based compensation
9,354
2,040
32,114
8,091
Acquisition expenses
3,168
2,494
11,666
6,597
Realignment expenses
10
(92
)
10,022
(584
)
Expenses associated with IPO
—
—
26,130
—
Adjusted income from
operations
$
72,834
$
52,179
$
250,803
$
174,700
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210302005366/en/
Investor Contact: Ankit Hira or Ed Yuen Solebury Trout for
Bentley Systems ir@bentley.com 1-610-458-2777
Media Contact: Carey Mann carey.mann@bentley.com
1-610-458-3170
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