Bentley Systems, Incorporated (Nasdaq: BSY) (“Bentley Systems”
or the “Company”), the infrastructure engineering software company,
today announced operating results for its second quarter and six
months ended June 30, 2021.
Second Quarter 2021 Financial Results:
- Total revenues were $222.9 million, up 21.0%
year-over-year;
- Subscriptions revenues were $185.5 million, up 17.6%
year-over-year;
- Last twelve-month recurring revenues were $746.2 million, up
12.1% year-over-year;
- Last twelve-month recurring revenues dollar-based net retention
rate was 106% (calculated under Topic 606), compared to 110%
(calculated under Topic 605) for the same period last year;
- Last twelve-month account retention rate was 98% (calculated
under Topic 606), compared to 98% (calculated under Topic 605) for
the same period last year;
- Annualized Recurring Revenue (“ARR”) was $882.4 million as of
June 30, 2021, representing a constant currency ARR growth rate of
23% from June 30, 2020;
- GAAP operating income was $32.2 million, compared to $44.6
million for the same period last year;
- GAAP net income was $44.9 million, compared to $39.1 million
for the same period last year. GAAP net income per diluted share
was $0.14, compared to $0.13 for the same period last year;
- Adjusted Net Income was $74.3 million, compared to $46.0
million for the same period last year. Adjusted Net Income per
diluted share was $0.23 compared to $0.16 for the same period last
year;
- Adjusted EBITDA was $69.1 million, compared to $57.6 million
for the same period last year. Adjusted EBITDA margin was 30.9%,
compared to 31.2% for the same period last year;
- Cash flow from operations was $16.2 million, compared to $63.6
million for the same period last year.
Six Months Ended June 30, 2021 Financial Results:
- Total revenues were $444.9 million, up 17.4%
year-over-year;
- Subscriptions revenues were $373.6 million, up 14.0%
year-over-year;
- GAAP operating income was $87.9 million, compared to $90.6
million for the same period last year;
- GAAP net income was $101.9 million, compared to $68.7 million
for the same period last year. GAAP net income per diluted share
was $0.32, compared to $0.23 for the same period last year;
- Adjusted Net Income was $138.3 million, compared to $89.2
million for the same period last year. Adjusted Net Income per
diluted share was $0.43 compared to $0.30 for the same period last
year;
- Adjusted EBITDA was $151.9 million, compared to $115.5 million
for the same period last year. Adjusted EBITDA margin was 34.1%,
compared to 30.5% for the same period last year;
- Cash flow from operations was $149.0 million, compared to
$136.2 million for the same period last year.
Definitions of the non-GAAP financial measures used in this
press release and reconciliations of such measures to the most
comparable GAAP financial measures are included below under the
heading “Use and Reconciliation of Non-GAAP Financial
Measures.”
CEO Greg Bentley said, “Amidst the fits and starts which
characterize the global resumption of growth for infrastructure
engineering in 2021, going digital has remained an overarching
priority that continues to benefit our software users,
infrastructure projects and assets, and our operating results. A
highlight for us this quarter has been the inclusion of Seequent,
and subsurface digital twins, into our company and into our new
financial outlook. Somewhat restrained favorable directions
continue in the preponderance of our business, with usage growth
beyond the pre-pandemic levels of 2019, resulting uptrends in ARR
and new business and subscription revenues, and continued upward
inflections in SMB subscriptions and resulting business from new
accounts. Our growth bottlenecks continue to be ever more localized
to industrial and resources ‘capex,’ and to the geographies
(especially Middle East and Southeast Asia) most dependent on this
sector—with a new concern brought on by unanticipated subscription
attrition within mid-size enterprise accounts in greater China,
despite an otherwise healthy demand environment in that
territory.”
Mr. Bentley continued, “Our updated financial outlook for the
full year 2021 contemplates surpassing the milestones of one
billion-dollars in revenue (pro forma for the acquisition of
Seequent as if it had occurred at the beginning of 2021),
double-digit ARR growth even exclusive of Seequent, and,
importantly, maintaining our 32% Adjusted EBITDA margin target for
2021 while absorbing at the same time our incremental investments
in growth initiatives, our incremental public company operating
costs, and our increasing pace of programmatic growth acquisitions,
along with the financially material acquisition of Seequent.”
Second Quarter 2021 Financial Developments:
- On June 17, 2021, we completed the acquisition of Seequent, a
leader in software for geological and geophysical modeling,
geotechnical stability, and cloud services for geodata management
and collaboration, for $911.0 million in cash, net of cash
acquired, plus 3,141,342 shares of our Class B Common Stock. We
used readily available cash, including a portion of the net
proceeds from the private offering of convertible senior notes due
2026, and borrowings under our Credit Facility to fund the cash
component of the transaction. For the six months ended June 30,
2021, we incurred $15.9 million of expenses related to the
acquisition of Seequent. For the period from June 17, 2021 through
June 30, 2021, Seequent contributed approximately $4.0 million to
revenues, $0.5 million to operating income, and $90.6 million to
ARR.
- In June 2021, we completed a private offering of $575.0 million
of 0.375% convertible senior notes due 2027 (the “2027 Notes”). We
incurred $15.1 million of expenses in connection with the 2027
Notes offering consisting of the payment of initial purchasers’
discounts and commissions, professional fees, and other expenses
(“transaction costs”). Transaction costs were recorded as a direct
deduction from the related debt liability in the consolidated
balance sheet and are amortized to interest expense using the
effective interest method over the term of the 2027 Notes.
- In connection with the pricing of the 2027 Notes, we entered
into capped call options with certain of the initial purchasers or
their respective affiliates and certain other financial
institutions. The capped call options are expected to reduce
potential dilution to our Class B Common Stock upon any conversion
of 2027 Notes and/or offset any cash payments we are required to
make in excess of the principal amount of converted notes, as the
case may be, with such reduction and/or offset subject to a cap. We
paid premiums of $25.9 million in connection with the capped call
options and they have been included as a net reduction to
Additional paid-in capital in the consolidated balance sheet.
2021 Financial Outlook:
The Company does not provide quarterly guidance, but we update
our full-year financial outlook when announcing quarterly operating
results to the extent expectations materially change.
Accordingly, the following update to our outlook for the year
ending December 31, 2021, reflects first half performance, current
business developments, and notably, the Seequent acquisition. 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 our financial outlook remain
uncertain.
Initial Outlook
Updated Outlook
Total revenues
$895 – $920 million
$945 – $960 million (1)
Constant currency ARR growth rate
8% – 10%
22% – 24% (2)
Adjusted EBITDA
$285 – $295 million
$305 – $310 million
Effective tax rate
20%
<15%
_______________________
(1)
Updated total revenues outlook is net of a
$10 million decrease in total revenue due to a strengthening of the
US dollar relative to exchange rates in effect when the initial
outlook was prepared, and approximately $5 million of
Seequent-related opening balance sheet deferred revenue fair value
adjustments (“haircuts”).
(2)
The updated outlook for constant currency
ARR growth rate includes growth of 12% to 13% from the initial
inclusion and subsequent growth of Seequent, and growth of 10% to
11% from all other business.
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. We are 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, our results may
not fall within the ranges contained in this outlook. The Company
uses these forward-looking measures to evaluate its ongoing
operations and for internal planning and forecasting purposes.
Operating Results Call Details
Bentley Systems will host a live Zoom video webinar on August
10, 2021 at 8:15 a.m. Eastern time to discuss operating results for
its second quarter and six months ended June 30, 2021.
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_BqaF5dY4SrG_Dcfx1k-CZA.
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.
Definitions of Certain Key Business Metrics
Definitions of the non-GAAP financial measures used in this
operating results press release and reconciliations of such
measures to their nearest GAAP equivalents are included below under
“Use and Reconciliation of Non-GAAP Financial Measures.” Certain
non-GAAP measures included in our financial outlook are not being
reconciled to the comparable GAAP financial measures because the
GAAP measures are not accessible on a forward-looking basis. The
Company is unable to reconcile these forward-looking non-GAAP
financial measures to the most directly comparable GAAP measures
without unreasonable efforts because the Company is currently
unable to predict with a reasonable degree of certainty the type
and extent of certain items that would be expected for these
periods not to impact the non-GAAP measures, but would impact GAAP
measures. Such unavailable information, which could have a
significant impact on the Company’s GAAP financial results, may
include stock-based compensation charges, depreciation and
amortization of capitalized software costs and of acquired
intangible assets, realignment expenses, and other items.
Last twelve-month recurring revenues are calculated as recurring
revenues recognized over the preceding twelve-month period. We
define recurring revenues as subscription revenues that recur
monthly, quarterly, or annually with specific or automatic renewal
clauses and professional services revenues in which the underlying
contract is based on a fixed fee and contains automatic annual
renewal provisions.
Constant Currency Metrics
In reporting period-over-period results, we calculate the
effects of foreign currency fluctuations and constant currency
information by translating current period results using prior
period average foreign currency exchange rates. Our definition of
constant currency may differ from other companies reporting
similarly named measures, and these constant currency performance
measures should be viewed in addition to, and not as a substitute
for, our operating performance measures calculated in accordance
with GAAP.
- Our last twelve-month recurring revenues dollar-based net
retention rate is calculated, using the average exchange rates for
the prior period, as follows: the recurring revenues for the
current period, including any growth or reductions from accounts
with recurring revenues in the prior period (“existing accounts”),
but excluding recurring revenues from any new accounts added during
the current period, divided by the total recurring revenues from
all accounts during the prior period. A period is defined as any
trailing twelve months. 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 account 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. 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-GAAP Financial Measures
In addition to our results determined in accordance with GAAP,
we have calculated adjusted cost of subscriptions and licenses,
adjusted cost of services, adjusted research and development,
adjusted selling and marketing, adjusted general and
administrative, adjusted income from operations, Adjusted Net
Income, Adjusted Net Income per diluted share, Adjusted EBITDA, and
Adjusted EBITDA margin, each of which are non-GAAP financial
measures. We have provided tabular reconciliations of each of these
non-GAAP financial measures to such measure’s most directly
comparable GAAP financial measure.
Management uses these non-GAAP financial measures to understand
and compare operating results across accounting periods, for
internal budgeting and forecasting purposes, and to evaluate
financial performance 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 Quarterly Report on Form 10-Q to be filed with the
U.S. Securities and Exchange Commission (“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, and realignment expenses 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, 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;
- 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, 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 adjusted total revenues (total revenues adjusted to add
back the fair value adjustment of acquired deferred 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.
Forward-Looking Statements
This press release includes forward-looking statements regarding
the future results of operations and financial position, business
strategy, and plans and objectives for future operations of Bentley
Systems, Incorporated (the “Company,” “we,” “us,” and words of
similar import). All such statements contained in this press
release, other than statements of historical facts, are
forward-looking statements. The words “believe,” “may,” “will,”
“estimate,” “continue,” “anticipate,” “intend,” “expect,” and
similar expressions are intended to identify forward-looking
statements. We have based these forward-looking statements largely
on our current expectations, projections, and assumptions about
future events and financial trends that we believe may affect our
financial condition, results of operations, business strategy,
short-term and long-term business operations and objectives, and
financial needs. These forward-looking statements are subject to a
number of risks, uncertainties and assumptions, and there are a
significant number of factors that could cause actual results to
differ materially from statements made in this press release
including: current and potential future impacts of the COVID-19
pandemic on the global economy and our business, and consolidated
financial statements; adverse changes in global economic and/or
political conditions; political, economic, regulatory and public
health and safety risks and uncertainties in the countries and
regions in which we operate; failure to retain personnel necessary
for the operation of our business or those that we acquire; changes
in the industries in which our accounts operate; the competitive
environment in which we operate; the quality of our products; our
ability to develop and market new products to address our accounts’
rapidly changing technological needs; changes in capital markets
and our ability to access financing on terms satisfactory to us or
at all; and our ability to integrate acquired businesses
successfully.
Further information on potential factors that could affect the
financial results of the Company are included in the Company’s Form
10-K and subsequent Forms 10-Q, which are on file with the U.S.
Securities and Exchange Commission. The Company disclaims any
obligation to update the forward-looking statements provided to
reflect events that occur or circumstances that exist after the
date on which they were made.
About Bentley Systems
Bentley Systems (Nasdaq: BSY) is the infrastructure engineering
software company. We provide innovative software to advance the
world’s infrastructure – sustaining both the global economy and
environment. Our industry-leading software solutions are used by
professionals, and organizations of every size, for the design,
construction, and operations of roads and bridges, rail and
transit, water and wastewater, public works and utilities,
buildings and campuses, mining, and industrial facilities. Our
offerings include MicroStation-based applications for modeling and
simulation, ProjectWise for project delivery, AssetWise for asset
and network performance, Seequent’s leading geosciences software
portfolio, 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, iTwin, MicroStation, ProjectWise, and Seequent are
either registered or unregistered trademarks or service marks of
Bentley Systems, Incorporated or one of its direct or indirect
wholly owned subsidiaries. All other brands and product names are
trademarks of their respective owners.
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Balance
Sheets
(in thousands)
(unaudited)
June 30, 2021 December 31, 2020 Assets
Current assets: Cash and cash equivalents
$
131,154
$
122,006
Accounts receivable
221,764
195,782
Allowance for doubtful accounts
(6,396
)
(5,759
)
Prepaid income taxes
32,108
3,535
Prepaid and other current assets
26,864
24,694
Total current assets
405,494
340,258
Property and equipment, net
31,439
28,414
Operating lease right-of-use assets
52,599
46,128
Intangible assets, net
262,234
45,627
Goodwill
1,593,670
581,174
Investments
6,870
5,691
Deferred income taxes
54,705
39,224
Other assets
47,104
39,519
Total assets
$
2,454,115
$
1,126,035
Liabilities and Stockholders’ Equity Current liabilities:
Accounts payable
$
14,891
$
16,492
Accruals and other current liabilities
314,529
226,793
Deferred revenues
215,678
202,294
Operating lease liabilities
18,694
16,610
Income taxes payable
5,761
3,366
Total current liabilities
569,553
465,555
Long-term debt
1,269,842
246,000
Long-term operating lease liabilities
35,968
31,767
Deferred revenues
7,308
7,020
Deferred income taxes
70,683
10,849
Income taxes payable
7,613
7,883
Other liabilities
21,334
15,362
Total liabilities
1,982,301
784,436
Stockholders’ equity: Common stock
2,812
2,722
Additional paid-in capital
910,951
741,113
Accumulated other comprehensive loss
(54,886
)
(26,233
)
Accumulated deficit
(387,063
)
(376,003
)
Total stockholders’ equity
471,814
341,599
Total liabilities and stockholders’ equity
$
2,454,115
$
1,126,035
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Statements of
Operations
(in thousands, except share
and per share data)
(unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Revenues: Subscriptions
$
185,452
$
157,655
$
373,577
$
327,837
Perpetual licenses
11,391
12,379
21,507
23,193
Subscriptions and licenses
196,843
170,034
395,084
351,030
Services
26,088
14,256
49,852
27,950
Total revenues
222,931
184,290
444,936
378,980
Cost of revenues: Cost of subscriptions and licenses
29,881
21,801
58,826
43,128
Cost of services
23,570
14,904
43,914
30,836
Total cost of revenues
53,451
36,705
102,740
73,964
Gross profit
169,480
147,585
342,196
305,016
Operating expenses: Research and development
52,776
44,218
100,579
89,353
Selling and marketing
38,014
29,632
70,454
65,727
General and administrative
41,878
25,465
75,266
52,269
Amortization of purchased intangibles
4,589
3,679
8,027
7,115
Total operating expenses
137,257
102,994
254,326
214,464
Income from operations
32,223
44,591
87,870
90,552
Interest expense, net
(2,453
)
(1,128
)
(4,772
)
(2,516
)
Other (expense) income, net
(3,777
)
405
10,705
(6,985
)
Income before income taxes
25,993
43,868
93,803
81,051
Benefit (provision) for income taxes
20,746
(4,264
)
10,388
(11,440
)
Loss from investment accounted for using the equity method, net of
tax
(1,829
)
(528
)
(2,275
)
(866
)
Net income
44,910
39,076
101,916
68,745
Less: Net income attributable to participating securities
(3
)
-
(3
)
-
Net income attributable to Class A and Class B common stockholders
$
44,907
$
39,076
$
101,913
$
68,745
Per share information: Net income per share, basic
$
0.15
$
0.14
$
0.34
$
0.24
Net income per share, diluted
$
0.14
$
0.13
$
0.32
$
0.23
Weighted average shares, basic
304,066,038
286,945,592
303,311,423
286,068,766
Weighted average shares, diluted
324,478,086
295,187,194
323,094,045
295,595,234
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Six Months Ended
June 30,
2021
2020
Cash flows from operating activities: Net income
$
101,916
$
68,745
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
19,280
16,664
Bad debt allowance
291
293
Deferred income taxes
(915
)
5,284
Deferred compensation plan activity
1,855
1,633
Stock-based compensation expense
20,598
3,212
Amortization and write-off of deferred debt issuance costs
2,371
277
Change in fair value of derivative
(7,735
)
4,174
Change in fair value of contingent consideration
-
(1,390
)
Foreign currency remeasurement (gain) loss
(2,371
)
3,538
Loss from investment accounted for using the equity method, net of
tax
2,275
866
Changes in assets and liabilities, net of effect from acquisitions:
Accounts receivable
(4,665
)
44,263
Prepaid and other assets
10,485
9,089
Accounts payable, accruals, and other liabilities
37,623
11,208
Deferred revenues
(4,756
)
(29,500
)
Income taxes payable, net of prepaid income taxes
(27,230
)
(2,174
)
Net cash provided by operating activities
149,022
136,182
Cash flows from investing activities: Purchases of property and
equipment and investment in capitalized software
(4,750
)
(9,970
)
Acquisitions, net of cash acquired of $36,847 and $2,064,
respectively
(1,002,551
)
(67,595
)
Other investing activities
(700
)
(1,414
)
Net cash used in investing activities
(1,008,001
)
(78,979
)
Cash flows from financing activities: Proceeds from credit
facilities
581,233
164,375
Payments of credit facilities
(790,846
)
(191,125
)
Proceeds from convertible senior notes, net of discounts and
commissions
1,233,377
-
Payments of debt issuance costs
(4,951
)
-
Purchase of capped call options
(51,555
)
-
Payments of financing leases
(101
)
(93
)
Payments of acquisition debt and other consideration
(544
)
(1,091
)
Payments of dividends
(16,591
)
(15,901
)
Payments for shares acquired including shares withheld for taxes
(87,836
)
(69,307
)
Proceeds from Common Stock Purchase Agreement
-
58,349
Proceeds from exercise of stock options
4,324
2,237
Net cash provided by (used in) financing activities
866,510
(52,556
)
Effect of exchange rate changes on cash and cash equivalents
1,617
(232
)
Increase in cash and cash equivalents
9,148
4,415
Cash and cash equivalents, beginning of year
122,006
121,101
Cash and cash equivalents, end of period
$
131,154
$
125,516
BENTLEY SYSTEMS, INCORPORATED
AND SUBSIDIARIES
Reconciliation of GAAP to
Non-GAAP Measures
For the Three and Six Months
Ended June 30, 2021 and 2020
(in thousands)
(unaudited)
Reconciliation of net income to Adjusted
EBITDA:
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net income
$
44,910
$
39,076
$
101,916
$
68,745
Interest expense, net
2,453
1,128
4,772
2,516
(Benefit) provision for income taxes
(20,746
)
4,264
(10,388
)
11,440
Depreciation and amortization
10,287
8,614
19,280
16,664
Stock-based compensation
11,685
1,559
20,598
3,212
Acquisition expenses
14,944
2,734
24,200
5,009
Realignment expenses
-
77
-
69
Other expense (income), net
3,777
(405
)
(10,705
)
6,985
Loss from investment accounted for using the equity method, net of
tax
1,829
528
2,275
866
Adjusted EBITDA
$
69,139
$
57,575
$
151,948
$
115,506
Reconciliation of net income to Adjusted
Net Income:
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Net income
$
44,910
$
39,076
$
101,916
$
68,745
Non-GAAP adjustments, prior to income taxes: Amortization of
purchased intangibles and developed technologies
5,781
4,919
10,464
9,458
Stock-based compensation
11,685
1,559
20,598
3,212
Acquisition expenses
14,944
2,734
24,200
5,009
Realignment expenses
-
77
-
69
Other expense (income), net
3,777
(405
)
(10,705
)
6,985
Total non-GAAP adjustments, prior to income taxes
36,187
8,884
44,557
24,733
Income tax effect of non-GAAP adjustments
(8,610
)
(2,441
)
(10,428
)
(5,141
)
Loss from investment accounted for using the equity method, net of
tax
1,829
528
2,275
866
Adjusted Net Income
$
74,316
$
46,047
$
138,320
$
89,203
Reconciliation of GAAP Financial Statement
Line Items to Non-GAAP Adjusted Financial Statement Line Items:
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
2021
2020
Total revenues
$
222,931
$
184,290
$
444,936
$
378,980
Fair value adjustment of acquired deferred revenues
998
79
1,010
195
Adjusted total revenues
$
223,929
$
184,369
$
445,946
$
379,175
Cost of subscriptions and licenses
$
29,881
$
21,801
$
58,826
$
43,128
Amortization of purchased intangibles and developed technologies
(1,192
)
(1,240
)
(2,437
)
(2,343
)
Stock-based compensation
(403
)
(19
)
(489
)
(47
)
Adjusted cost of subscriptions and licenses
$
28,286
$
20,542
$
55,900
$
40,738
Cost of services
$
23,570
$
14,904
$
43,914
$
30,836
Stock-based compensation
(153
)
(79
)
(388
)
(175
)
Acquisition expenses
(1,579
)
(415
)
(2,545
)
(435
)
Adjusted cost of services
$
21,838
$
14,410
$
40,981
$
30,226
Research and development
$
52,776
$
44,218
$
100,579
$
89,353
Stock-based compensation
(4,806
)
(536
)
(8,715
)
(1,155
)
Acquisition expenses
(1,971
)
(1,893
)
(3,345
)
(3,143
)
Realignment expenses
-
(77
)
-
(69
)
Adjusted research and development
$
45,999
$
41,712
$
88,519
$
84,986
Selling and marketing
$
38,014
$
29,632
$
70,454
$
65,727
Stock-based compensation
(1,313
)
(404
)
(2,003
)
(804
)
Acquisition expenses
(138
)
(80
)
(182
)
(157
)
Adjusted selling and marketing
$
36,563
$
29,148
$
68,269
$
64,766
General and administrative
$
41,878
$
25,465
$
75,266
$
52,269
Stock-based compensation
(5,010
)
(521
)
(9,003
)
(1,031
)
Acquisition expenses
(10,258
)
(267
)
(17,118
)
(1,079
)
Adjusted general and administrative
$
26,610
$
24,677
$
49,145
$
50,159
Income from operations
$
32,223
$
44,591
$
87,870
$
90,552
Amortization of purchased intangibles and developed technologies
5,781
4,919
10,464
9,458
Stock-based compensation
11,685
1,559
20,598
3,212
Acquisition expenses
14,944
2,734
24,200
5,009
Realignment expenses
-
77
-
69
Adjusted income from operations
$
64,633
$
53,880
$
143,132
$
108,300
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210810005547/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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