Bentley Systems Announces Operating Results for the Third Quarter of 2022
Third Quarter 2022 Financial Results
- Total revenues were
$268.3 million , up 6.7% or 14.7% on a constant currency basis, year-over-year; - Subscriptions revenues were
$235.3 million , up 9.4% or 17.6% on a constant currency basis, year-over-year; - Last twelve-month recurring revenues were
$950.4 million , up 20.3% year-over-year; - Last twelve-month recurring revenues dollar-based net retention rate was 110%, compared to 106% for the same period last year;
- Last twelve-month account retention rate was 99%, compared to 98% for the same period last year;
- Annualized Recurring Revenue (“ARR”) was
$983.7 million as ofSeptember 30, 2022 , representing a constant currency ARR growth rate of 14% fromSeptember 30, 2021 ; - GAAP operating income was
$55.5 million , compared to GAAP operating loss of$37.5 million for the same period last year. The third quarter of 2021 GAAP operating loss was due to a one-time compensation charge of$90.7 million resulting from a modification of our deferred compensation plan; - GAAP net income was
$37.0 million , compared to GAAP net loss of$48.0 million for the same period last year. GAAP net income per diluted share was$0.12 , compared to GAAP net loss per diluted share of$0.16 for the same period last year. The third quarter of 2021 GAAP net loss was due to a one-time compensation charge of$83.4 million , net of tax, resulting from a modification of our deferred compensation plan. GAAP net income margin was 13.8%, compared to GAAP net loss margin of 19.1% for the same period last year; - Adjusted Net Income was
$61.8 million , compared to$56.3 million for the same period last year. Adjusted Net Income per diluted share was$0.19 compared to$0.17 for the same period last year; - Adjusted EBITDA was
$89.7 million , compared to$84.5 million for the same period last year. Adjusted EBITDA margin was 33.4%, compared to 33.6% for the same period last year; and - Cash flow from operations was
$69.5 million , compared to$58.4 million for the same period last year.
Nine Months Ended
- Total revenues were
$812.1 million , up 16.5% or 22.6% on a constant currency basis, year-over-year; - Subscriptions revenues were
$708.7 million , up 20.2% or 26.6% on a constant currency basis, year-over-year; - GAAP operating income was
$167.9 million , compared to$51.3 million for the same period last year. The nine months endedSeptember 30, 2021 GAAP operating income includes a one-time compensation charge of$90.7 million resulting from a modification of our deferred compensation plan; - GAAP net income was
$149.1 million , compared to$54.6 million for the same period last year. GAAP net income per diluted share was$0.46 , compared to$0.17 for the same period last year. The nine months endedSeptember 30, 2021 GAAP net income includes a one-time compensation charge of$83.4 million , net of tax, resulting from a modification of our deferred compensation plan. GAAP net income margin was 18.4%, compared to 7.8% for the same period last year; - Adjusted Net Income was
$215.2 million , compared to$195.0 million for the same period last year. Adjusted Net Income per diluted share was$0.66 compared to$0.62 for the same period last year; - Adjusted EBITDA was
$273.9 million , compared to$236.8 million for the same period last year. Adjusted EBITDA margin was 33.7%, compared to 34.0% for the same period last year; and - Cash flow from operations was
$238.2 million , compared to$207.4 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
Significantly, each of our primary growth initiatives is bearing fruit as intended in terms of business performance ARR growth, serving to make up for circumstantially fewer programmatic acquisitions during 2022 to date. Our enterprise success teams are increasing ARR accretion within our consumption‑based E365 program. Our Virtuoso subscriptions are growing exponentially in SMB accounts and new‑name prospects. Our Seequent and Power Line Systems platform acquisitions continue their pace‑setting growth. Finally, our Year in Infrastructure 2022 conference next week in
CFO
To quantify the ongoing impact of the year’s volatile exchange rates on our annual outlook metrics, which are denominated in reported currency:
- our 22Q3 GAAP total revenues of
$268.3 million would have been$283.3 million , if the exchange rates used in our annual financial outlook had remained in effect; and - if recent exchange rates would prevail for the remainder of the year, our 2022 full year total revenues as reported would be negatively impacted on the order of
$40 million , relative to the revenues based on the exchange rates in effect when we determined our full year 2022 outlook.
By virtue of our operating expense natural hedge, we continue to expect that exchange rates will have minimal effect on our full year outlook for 2022 adjusted EBITDA margin of 33%.”
Operating Results Call Details
Those wishing to participate should access the live Zoom video webinar of the event through a direct registration link at https://us06web.zoom.us/webinar/register/WN_xfiQCdeSRZishWDpJPAwfA. Alternatively, the event can be accessed from the Events & Presentations page on Bentley Systems’ Investor Relations website at https://investors.bentley.com. In addition, a replay and transcript will be available after the conclusion of the live event on Bentley Systems’ Investor Relations website for one year.
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.”
- 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;
- ARR is defined as the sum of the annualized value of our portfolio of contracts that produce recurring revenues as of the last day of the reporting period, and the annualized value of the last three months of recognized revenues for our contractually recurring consumption‑based software subscriptions with consumption measurement durations of less than one year, calculated using the spot foreign exchange rates;
- Business performance is defined as organic growth results inclusive of the impact from the ARR onboarding of certain programmatic acquisitions, which generally are immaterial, individually and in the aggregate, and is exclusive of the ARR onboarding of our Seequent and Power Line Systems platform acquisitions;
- GAAP net income (loss) margin is determined by dividing GAAP net income (loss) by total revenues;
- Adjusted EBITDA margin is determined by dividing Adjusted EBITDA by total revenues; and
- Adjusted Net Income per diluted share is determined by dividing Adjusted Net Income by the weighted average diluted shares.
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. Related to our platform acquisitions, recurring revenues into new accounts will be captured as existing accounts starting with the second anniversary of the acquisition when such data conforms to the calculation methodology. This may cause variability in the comparison;
- 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; and
- Our constant currency ARR growth rate is the growth rate of our ARR, measured on a constant currency basis.
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, and Adjusted EBITDA, 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. 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 and prospects 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
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, acquisition expenses, and realignment expenses (income), 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 (income), for the respective periods;
- Adjusted research and development is determined by adding back to GAAP research and development, stock‑based compensation and acquisition 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 (income), 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 (income), for the respective periods;
- Adjusted income from operations is determined by adding back to GAAP operating income (loss), amortization of purchased intangibles and developed technologies, stock‑based compensation, expense (income) relating to deferred compensation plan liabilities, acquisition expenses, and realignment expenses (income), for the respective periods;
- Adjusted Net Income is defined as net income (loss) adjusted for the following: amortization of purchased intangibles and developed technologies, stock‑based compensation, expense (income) relating to deferred compensation plan liabilities, acquisition expenses, realignment expenses (income), other non‑operating (income) expense, net, the tax effect of the above adjustments to net income (loss), and (income) loss from investment accounted for using the equity method, net of tax. The income tax effect of non‑GAAP adjustments was determined using the applicable rates in the taxing jurisdictions in which income or expense occurred, and represent both current and deferred income tax expense or benefit based on the nature of the non‑GAAP adjustments, including the tax effects of non‑cash stock‑based compensation expense; and
- Adjusted EBITDA is defined as net income (loss) adjusted for interest expense, net, provision (benefit) for income taxes, depreciation and amortization, stock‑based compensation, expense (income) relating to deferred compensation plan liabilities, acquisition expenses, realignment expenses (income), other non‑operating (income) expense, net, and (income) loss from investment accounted for using the equity method, net of tax.
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. During the second quarter of 2022, we modified our definitions of Adjusted EBITDA and Adjusted Net Income to adjust for realignment expenses (income) relating to our wind down of business in, and exit from, the Russian market, which were subsequently adjusted during the third quarter of 2022 for our change in estimates. These realignment expenses (income) are comprised of termination benefits for colleagues whose positions were eliminated and corresponding asset impairments. Amounts for all periods herein reflect application of the aforementioned definitions modification.
During the fourth quarter of 2021, we early adopted Accounting Standards Update No. 2021‑08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, effective
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
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
About
www.bentley.com
© 2022
Consolidated Balance Sheets (in thousands) (unaudited) |
||||||||
|
|
|
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
72,856 |
|
|
$ |
329,337 |
|
Accounts receivable |
|
|
214,459 |
|
|
|
241,807 |
|
Allowance for doubtful accounts |
|
|
(10,802 |
) |
|
|
(6,541 |
) |
Prepaid income taxes |
|
|
17,414 |
|
|
|
16,880 |
|
Prepaid and other current assets |
|
|
32,224 |
|
|
|
34,348 |
|
Total current assets |
|
|
326,151 |
|
|
|
615,831 |
|
Property and equipment, net |
|
|
30,753 |
|
|
|
31,823 |
|
Operating lease right-of-use assets |
|
|
41,499 |
|
|
|
50,818 |
|
Intangible assets, net |
|
|
301,173 |
|
|
|
245,834 |
|
|
|
|
2,193,053 |
|
|
|
1,588,477 |
|
Investments |
|
|
21,690 |
|
|
|
6,438 |
|
Deferred income taxes |
|
|
52,751 |
|
|
|
71,376 |
|
Other assets |
|
|
74,367 |
|
|
|
48,646 |
|
Total assets |
|
$ |
3,041,437 |
|
|
$ |
2,659,243 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
16,860 |
|
|
$ |
16,483 |
|
Accruals and other current liabilities |
|
|
337,442 |
|
|
|
323,603 |
|
Deferred revenues |
|
|
186,358 |
|
|
|
224,610 |
|
Operating lease liabilities |
|
|
15,078 |
|
|
|
17,482 |
|
Income taxes payable |
|
|
8,405 |
|
|
|
6,696 |
|
Current portion of long-term debt |
|
|
5,000 |
|
|
|
5,000 |
|
Total current liabilities |
|
|
569,143 |
|
|
|
593,874 |
|
Long-term debt |
|
|
1,776,610 |
|
|
|
1,430,992 |
|
Deferred compensation plan liabilities |
|
|
71,013 |
|
|
|
94,890 |
|
Long-term operating lease liabilities |
|
|
28,776 |
|
|
|
35,274 |
|
Deferred revenues |
|
|
15,252 |
|
|
|
7,983 |
|
Deferred income taxes |
|
|
43,817 |
|
|
|
65,014 |
|
Income taxes payable |
|
|
8,893 |
|
|
|
7,725 |
|
Other liabilities |
|
|
7,734 |
|
|
|
14,269 |
|
Total liabilities |
|
|
2,521,238 |
|
|
|
2,250,021 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
2,884 |
|
|
|
2,825 |
|
Additional paid-in capital |
|
|
1,005,075 |
|
|
|
937,805 |
|
Accumulated other comprehensive loss |
|
|
(101,929 |
) |
|
|
(91,774 |
) |
Accumulated deficit |
|
|
(385,831 |
) |
|
|
(439,634 |
) |
Total stockholders’ equity |
|
|
520,199 |
|
|
|
409,222 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,041,437 |
|
|
$ |
2,659,243 |
|
Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited) |
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|
Three Months Ended |
|
Nine Months Ended |
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|
|
|
|
|
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Subscriptions |
|
$ |
235,307 |
|
|
$ |
215,135 |
|
|
$ |
708,731 |
|
|
$ |
589,702 |
|
Perpetual licenses |
|
|
9,460 |
|
|
|
11,866 |
|
|
|
31,213 |
|
|
|
33,373 |
|
Subscriptions and licenses |
|
|
244,767 |
|
|
|
227,001 |
|
|
|
739,944 |
|
|
|
623,075 |
|
Services |
|
|
23,565 |
|
|
|
24,387 |
|
|
|
72,190 |
|
|
|
74,239 |
|
Total revenues |
|
|
268,332 |
|
|
|
251,388 |
|
|
|
812,134 |
|
|
|
697,314 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
||||||||
Cost of subscriptions and licenses |
|
|
37,371 |
|
|
|
31,056 |
|
|
|
107,904 |
|
|
|
89,882 |
|
Cost of services |
|
|
21,812 |
|
|
|
23,176 |
|
|
|
66,758 |
|
|
|
67,090 |
|
Total cost of revenues |
|
|
59,183 |
|
|
|
54,232 |
|
|
|
174,662 |
|
|
|
156,972 |
|
Gross profit |
|
|
209,149 |
|
|
|
197,156 |
|
|
|
637,472 |
|
|
|
540,342 |
|
Operating expense (income): |
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
|
63,827 |
|
|
|
57,334 |
|
|
|
189,966 |
|
|
|
157,913 |
|
Selling and marketing |
|
|
46,114 |
|
|
|
44,392 |
|
|
|
141,676 |
|
|
|
114,846 |
|
General and administrative |
|
|
37,794 |
|
|
|
35,329 |
|
|
|
128,981 |
|
|
|
110,233 |
|
Deferred compensation plan |
|
|
(4,576 |
) |
|
|
88,965 |
|
|
|
(21,873 |
) |
|
|
89,327 |
|
Amortization of purchased intangibles |
|
|
10,446 |
|
|
|
8,676 |
|
|
|
30,869 |
|
|
|
16,703 |
|
Total operating expenses |
|
|
153,605 |
|
|
|
234,696 |
|
|
|
469,619 |
|
|
|
489,022 |
|
Income (loss) from operations |
|
|
55,544 |
|
|
|
(37,540 |
) |
|
|
167,853 |
|
|
|
51,320 |
|
Interest expense, net |
|
|
(8,382 |
) |
|
|
(3,836 |
) |
|
|
(23,046 |
) |
|
|
(8,608 |
) |
Other income (expense), net |
|
|
180 |
|
|
|
(957 |
) |
|
|
14,318 |
|
|
|
9,748 |
|
Income (loss) before income taxes |
|
|
47,342 |
|
|
|
(42,333 |
) |
|
|
159,125 |
|
|
|
52,460 |
|
(Provision) benefit for income taxes |
|
|
(9,664 |
) |
|
|
(5,025 |
) |
|
|
(8,221 |
) |
|
|
5,090 |
|
Loss from investment accounted for using the equity method, net of tax |
|
|
(681 |
) |
|
|
(664 |
) |
|
|
(1,846 |
) |
|
|
(2,939 |
) |
Net income (loss) |
|
|
36,997 |
|
|
|
(48,022 |
) |
|
|
149,058 |
|
|
|
54,611 |
|
Less: Net income (loss) attributable to participating securities |
|
|
(11 |
) |
|
|
(3 |
) |
|
|
(31 |
) |
|
|
(6 |
) |
Net income (loss) attributable to Class A and Class B common stockholders |
|
$ |
36,986 |
|
|
$ |
(48,025 |
) |
|
$ |
149,027 |
|
|
$ |
54,605 |
|
Per share information: |
|
|
|
|
|
|
|
|
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Net income (loss) per share, basic |
|
$ |
0.12 |
|
|
$ |
(0.16 |
) |
|
$ |
0.48 |
|
|
$ |
0.18 |
|
Net income (loss) per share, diluted |
|
$ |
0.12 |
|
|
$ |
(0.16 |
) |
|
$ |
0.46 |
|
|
$ |
0.17 |
|
Weighted average shares, basic |
|
|
310,116,104 |
|
|
|
308,195,379 |
|
|
|
308,959,801 |
|
|
|
305,119,985 |
|
Weighted average shares, diluted |
|
|
325,170,383 |
|
|
|
308,195,379 |
|
|
|
332,077,834 |
|
|
|
314,658,136 |
|
Consolidated Statements of Cash Flows (in thousands) (unaudited) |
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|
Nine Months Ended |
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|
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|
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|
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net income |
|
$ |
149,058 |
|
|
$ |
54,611 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
53,644 |
|
|
|
35,946 |
|
Bad debt allowance |
|
|
5,199 |
|
|
|
466 |
|
Deferred income taxes |
|
|
(13,670 |
) |
|
|
(17,788 |
) |
Stock-based compensation expense |
|
|
51,359 |
|
|
|
32,853 |
|
Deferred compensation plan |
|
|
(21,873 |
) |
|
|
89,327 |
|
Amortization and write-off of deferred debt issuance costs |
|
|
5,468 |
|
|
|
4,160 |
|
Change in fair value of derivative |
|
|
(29,318 |
) |
|
|
(9,198 |
) |
Foreign currency remeasurement loss |
|
|
14,445 |
|
|
|
103 |
|
Other non-cash items, net |
|
|
(1,006 |
) |
|
|
2,939 |
|
Changes in assets and liabilities, net of effect from acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
12,550 |
|
|
|
26,305 |
|
Prepaid and other assets |
|
|
7,779 |
|
|
|
11,310 |
|
Accounts payable, accruals, and other liabilities |
|
|
28,765 |
|
|
|
29,047 |
|
Deferred revenues |
|
|
(26,725 |
) |
|
|
(40,496 |
) |
Income taxes payable, net of prepaid income taxes |
|
|
2,523 |
|
|
|
(12,168 |
) |
Net cash provided by operating activities |
|
|
238,198 |
|
|
|
207,417 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment and investment in capitalized software |
|
|
(12,982 |
) |
|
|
(11,152 |
) |
Proceeds from sale of aircraft |
|
|
2,380 |
|
|
|
— |
|
Acquisitions, net of cash acquired |
|
|
(719,539 |
) |
|
|
(1,033,695 |
) |
Other investing activities |
|
|
(10,304 |
) |
|
|
(3,000 |
) |
Net cash used in investing activities |
|
|
(740,445 |
) |
|
|
(1,047,847 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from credit facilities |
|
|
753,376 |
|
|
|
682,083 |
|
Payments of credit facilities |
|
|
(408,714 |
) |
|
|
(860,228 |
) |
Proceeds from convertible senior notes, net of discounts and commissions |
|
|
— |
|
|
|
1,233,377 |
|
Payments of debt issuance costs |
|
|
— |
|
|
|
(5,643 |
) |
Purchase of capped call options |
|
|
— |
|
|
|
(51,555 |
) |
Repayment of term loan |
|
|
(3,750 |
) |
|
|
— |
|
Payments of financing leases |
|
|
(123 |
) |
|
|
(147 |
) |
Payments of acquisition debt and other consideration |
|
|
(6,996 |
) |
|
|
(741 |
) |
Payments of dividends |
|
|
(25,828 |
) |
|
|
(25,076 |
) |
Proceeds from stock purchases under employee stock purchase plan |
|
|
10,335 |
|
|
|
3,846 |
|
Proceeds from exercise of stock options |
|
|
6,855 |
|
|
|
5,039 |
|
Payments for shares acquired including shares withheld for taxes |
|
|
(42,213 |
) |
|
|
(111,306 |
) |
Repurchase of Class B Common Stock under approved program |
|
|
(28,250 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
254,692 |
|
|
|
869,649 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(8,926 |
) |
|
|
4,530 |
|
(Decrease) increase in cash and cash equivalents |
|
|
(256,481 |
) |
|
|
33,749 |
|
Cash and cash equivalents, beginning of year |
|
|
329,337 |
|
|
|
122,006 |
|
Cash and cash equivalents, end of period |
|
$ |
72,856 |
|
|
$ |
155,755 |
|
Reconciliation of GAAP to Non-GAAP Measures For the Three and Nine Months Ended (in thousands) (unaudited) |
|||||||||||||||
Reconciliation of net income (loss) to Adjusted EBITDA: |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
36,997 |
|
|
$ |
(48,022 |
) |
|
$ |
149,058 |
|
|
$ |
54,611 |
|
Interest expense, net |
|
8,382 |
|
|
|
3,836 |
|
|
|
23,046 |
|
|
|
8,608 |
|
Provision (benefit) for income taxes |
|
9,664 |
|
|
|
5,025 |
|
|
|
8,221 |
|
|
|
(5,090 |
) |
Depreciation and amortization |
|
17,914 |
|
|
|
16,666 |
|
|
|
53,644 |
|
|
|
35,946 |
|
Stock-based compensation |
|
18,626 |
|
|
|
11,588 |
|
|
|
50,974 |
|
|
|
32,186 |
|
Deferred compensation plan |
|
(4,576 |
) |
|
|
88,965 |
|
|
|
(21,873 |
) |
|
|
89,327 |
|
Acquisition expenses |
|
3,203 |
|
|
|
4,789 |
|
|
|
21,056 |
|
|
|
27,999 |
|
Realignment (income) expenses |
|
(971 |
) |
|
|
— |
|
|
|
2,223 |
|
|
|
— |
|
Other (income) expense, net |
|
(180 |
) |
|
|
957 |
|
|
|
(14,318 |
) |
|
|
(9,748 |
) |
Loss from investment accounted for using the equity method, net of tax |
|
681 |
|
|
|
664 |
|
|
|
1,846 |
|
|
|
2,939 |
|
Adjusted EBITDA |
$ |
89,740 |
|
|
$ |
84,468 |
|
|
$ |
273,877 |
|
|
$ |
236,778 |
|
Reconciliation of net income (loss) to Adjusted Net Income: |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net income (loss) |
$ |
36,997 |
|
|
$ |
(48,022 |
) |
|
$ |
149,058 |
|
|
$ |
54,611 |
|
Non-GAAP adjustments, prior to income taxes: |
|
|
|
|
|
|
|
||||||||
Amortization of purchased intangibles and developed technologies |
|
13,575 |
|
|
|
11,539 |
|
|
|
40,174 |
|
|
|
22,003 |
|
Stock-based compensation |
|
18,626 |
|
|
|
11,588 |
|
|
|
50,974 |
|
|
|
32,186 |
|
Deferred compensation plan |
|
(4,576 |
) |
|
|
88,965 |
|
|
|
(21,873 |
) |
|
|
89,327 |
|
Acquisition expenses |
|
3,203 |
|
|
|
4,789 |
|
|
|
21,056 |
|
|
|
27,999 |
|
Realignment (income) expenses |
|
(971 |
) |
|
|
— |
|
|
|
2,223 |
|
|
|
— |
|
Other (income) expense, net |
|
(180 |
) |
|
|
957 |
|
|
|
(14,318 |
) |
|
|
(9,748 |
) |
Total non-GAAP adjustments, prior to income taxes |
|
29,677 |
|
|
|
117,838 |
|
|
|
78,236 |
|
|
|
161,767 |
|
Income tax effect of non-GAAP adjustments |
|
(5,530 |
) |
|
|
(14,191 |
) |
|
|
(13,951 |
) |
|
|
(24,346 |
) |
Loss from investment accounted for using the equity method, net of tax |
|
681 |
|
|
|
664 |
|
|
|
1,846 |
|
|
|
2,939 |
|
Adjusted Net Income |
$ |
61,825 |
|
|
$ |
56,289 |
|
|
$ |
215,189 |
|
|
$ |
194,971 |
|
Reconciliation of GAAP Financial Statement Line Items to Non-GAAP Adjusted Financial Statement Line Items: |
||||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cost of subscriptions and licenses |
|
$ |
37,371 |
|
|
$ |
31,056 |
|
|
$ |
107,904 |
|
|
$ |
89,882 |
|
Amortization of purchased intangibles and developed technologies |
|
|
(3,129 |
) |
|
|
(2,863 |
) |
|
|
(9,305 |
) |
|
|
(5,300 |
) |
Stock-based compensation |
|
|
(752 |
) |
|
|
(320 |
) |
|
|
(1,913 |
) |
|
|
(809 |
) |
Acquisition expenses |
|
|
(63 |
) |
|
|
(7 |
) |
|
|
(63 |
) |
|
|
(7 |
) |
Realignment expenses |
|
|
— |
|
|
|
— |
|
|
|
(39 |
) |
|
|
— |
|
Adjusted cost of subscriptions and licenses |
|
$ |
33,427 |
|
|
$ |
27,866 |
|
|
$ |
96,584 |
|
|
$ |
83,766 |
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of services |
|
$ |
21,812 |
|
|
$ |
23,176 |
|
|
$ |
66,758 |
|
|
$ |
67,090 |
|
Stock-based compensation |
|
|
(428 |
) |
|
|
(227 |
) |
|
|
(1,347 |
) |
|
|
(615 |
) |
Acquisition expenses |
|
|
(1,370 |
) |
|
|
(1,835 |
) |
|
|
(3,987 |
) |
|
|
(4,380 |
) |
Realignment expenses |
|
|
(19 |
) |
|
|
— |
|
|
|
(52 |
) |
|
|
— |
|
Adjusted cost of services |
|
$ |
19,995 |
|
|
$ |
21,114 |
|
|
$ |
61,372 |
|
|
$ |
62,095 |
|
|
|
|
|
|
|
|
|
|
||||||||
Research and development |
|
$ |
63,827 |
|
|
$ |
57,334 |
|
|
$ |
189,966 |
|
|
$ |
157,913 |
|
Stock-based compensation |
|
|
(6,703 |
) |
|
|
(5,178 |
) |
|
|
(17,572 |
) |
|
|
(13,893 |
) |
Acquisition expenses |
|
|
(1,898 |
) |
|
|
(1,537 |
) |
|
|
(5,094 |
) |
|
|
(4,882 |
) |
Adjusted research and development |
|
$ |
55,226 |
|
|
$ |
50,619 |
|
|
$ |
167,300 |
|
|
$ |
139,138 |
|
|
|
|
|
|
|
|
|
|
||||||||
Selling and marketing |
|
$ |
46,114 |
|
|
$ |
44,392 |
|
|
$ |
141,676 |
|
|
$ |
114,846 |
|
Stock-based compensation |
|
|
(1,939 |
) |
|
|
(1,481 |
) |
|
|
(5,470 |
) |
|
|
(3,484 |
) |
Acquisition expenses |
|
|
(276 |
) |
|
|
(421 |
) |
|
|
(1,021 |
) |
|
|
(603 |
) |
Realignment income (expenses) |
|
|
753 |
|
|
|
— |
|
|
|
(1,196 |
) |
|
|
— |
|
Adjusted selling and marketing |
|
$ |
44,652 |
|
|
$ |
42,490 |
|
|
$ |
133,989 |
|
|
$ |
110,759 |
|
|
|
|
|
|
|
|
|
|
||||||||
General and administrative |
|
$ |
37,794 |
|
|
$ |
35,329 |
|
|
$ |
128,981 |
|
|
$ |
110,233 |
|
Stock-based compensation |
|
|
(8,804 |
) |
|
|
(4,382 |
) |
|
|
(24,672 |
) |
|
|
(13,385 |
) |
Acquisition expenses |
|
|
404 |
|
|
|
(983 |
) |
|
|
(10,891 |
) |
|
|
(18,101 |
) |
Realignment income (expenses) |
|
|
237 |
|
|
|
— |
|
|
|
(936 |
) |
|
|
— |
|
Adjusted general and administrative |
|
$ |
29,631 |
|
|
$ |
29,964 |
|
|
$ |
92,482 |
|
|
$ |
78,747 |
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) from operations |
|
$ |
55,544 |
|
|
$ |
(37,540 |
) |
|
$ |
167,853 |
|
|
$ |
51,320 |
|
Amortization of purchased intangibles and developed technologies |
|
|
13,575 |
|
|
|
11,539 |
|
|
|
40,174 |
|
|
|
22,003 |
|
Stock-based compensation |
|
|
18,626 |
|
|
|
11,588 |
|
|
|
50,974 |
|
|
|
32,186 |
|
Deferred compensation plan |
|
|
(4,576 |
) |
|
|
88,965 |
|
|
|
(21,873 |
) |
|
|
89,327 |
|
Acquisition expenses |
|
|
3,203 |
|
|
|
4,789 |
|
|
|
21,056 |
|
|
|
27,999 |
|
Realignment (income) expenses |
|
|
(971 |
) |
|
|
— |
|
|
|
2,223 |
|
|
|
— |
|
Adjusted income from operations |
|
$ |
85,401 |
|
|
$ |
79,341 |
|
|
$ |
260,407 |
|
|
$ |
222,835 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221108005046/en/
Investors:
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