EX-99.1 2 a24q2exhibit991.htm EX-99.1 Document

Exhibit 99.1
bentleylogo_blkxcomplete.jpg

Press Release

BSY Investor Contact:
Eric Boyer
Investor Relations Officer
ir@bentley.com


Bentley Systems Announces Second Quarter 2024 Results
EXTON, Pa. – August 6, 2024 – Bentley Systems, Incorporated (Nasdaq: BSY), the infrastructure engineering software company, today announced results for the quarter ended June 30, 2024.

Second Quarter 2024 Results

•Total revenues were $330.3 million, up 11.3% or 11.9% on a constant currency basis, year-over-year;
•Subscriptions revenues were $297.4 million, up 14.7% or 15.3% on a constant currency basis, year-over-year;
•Annualized Recurring Revenues (“ARR”) was $1,215.9 million as of June 30, 2024, compared to $1,105.9 million as of June 30, 2023, representing a constant currency ARR growth rate of 11%;
•Last twelve-month recurring revenues dollar-based net retention rate was 108%, compared to 110% for the same period last year;
•Operating income margin was 24.3%, compared to 18.0% for the same period last year;
•Adjusted operating income inclusive of stock-based compensation expense (“Adjusted OI w/SBC”) margin was 28.8%, compared to 24.7% for the same period last year;
•Net income per diluted share was $0.22, compared to $0.15 for the same period last year;
•Adjusted net income per diluted share (“Adjusted EPS”) was $0.31, compared to $0.24 for the same period last year; and
•Cash flows from operations was $62.6 million, compared to $80.6 million for the same period last year.



Six Months Ended June 30, 2024 Results

•Total revenues were $668.1 million, up 9.3% or 9.5% on a constant currency basis, year-over-year;
•Subscriptions revenues were $604.5 million, up 12.6% or 12.7% on a constant currency basis, year-over-year;
•Operating income margin was 25.8%, compared to 19.5% for the same period last year;
•Adjusted OI w/SBC margin was 31.1%, compared to 26.8% for the same period last year;
•Net income per diluted share was $0.44, compared to $0.29 for the same period last year;
•Adjusted EPS was $0.62, compared to $0.49 for the same period last year; and
•Cash flows from operations was $267.6 million, compared to $256.8 million for the same period last year.

Executive Chair Greg Bentley said, “We are pleased to report broadly favorable operating results for 24Q2. Our confidence in sustaining commendable performance is reinforced by the enduring—and if anything, broadening— vitality of our infrastructure engineering end markets, met with BSY’s competitive advantages and reliably efficient execution. But to me, the long-term potential of initiatives being explored and developed under our new generation of executive leadership seems even more auspicious!”

CEO Nicholas Cumins said, “Our performance in 24Q2 and the first half provides a solid foundation for the full year, with very positive end-market and operational momentum. Our year-over-year ARR growth of 11% on a constant currency basis (11.5% excluding China) is consistent with the previous quarter. Public Works / Utilities and North America remained the main growth drivers, and we continued to add new small- and medium-sized accounts at a rapid pace, reflecting healthy market conditions.

The traction we are generating with our AI-based solutions for asset analytics is worth noting. AI is going to become a major driver of our business, to help owner-operators improve the performance of their assets and make infrastructure more resilient, as well as to help engineering services firms increase their productivity and bridge the widening engineering resources capacity gap.”

CFO Werner Andre said, “24Q2 financial performance positions us solidly within our annual outlook range for ARR growth, profitability, and operating cash flow. While our mainstay subscription revenues are exceeding expectations, year-over-year growth in total revenues is being impacted by the expected prevalence of lower non-recurring professional services for our Cohesive digital integrator. Continued strong margins and operating cash flows throughout the first half, net of dividends and stock repurchases, further enhanced our balance sheet and acquisition flexibility.”

Recent Developments

Effective July 1, 2024, Greg Bentley transitioned from Chief Executive Officer to Executive Chair of the Board of Directors and Nicholas Cumins was promoted from Chief Operating Officer to Chief Executive Officer.



Call Details

Bentley Systems will host a live Zoom video webinar on August 6, 2024 at 8:15 a.m. Eastern time to discuss results for its second quarter ended June 30, 2024.

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_y6GttyVAR8amDwrlXVo1DA#/registration. 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.

Non-GAAP Financial Measures

In this press release, we sometimes refer to financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain of these measures are considered non-GAAP financial measures under the United States Securities and Exchange Commission (“SEC”) regulations. Those rules require the supplemental explanations and reconciliations that are in Bentley Systems’ Form 8-K (Quarterly Earnings Release) furnished to the SEC.

Forward-Looking Statements

This press release includes forward-looking statements regarding the future results of operations and financial condition, 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: adverse changes in global economic and/or political conditions; the impact of current and future sanctions, embargoes and other similar laws at the state and/or federal level that impose restrictions on our counterparties or upon our ability to operate our business within the subject jurisdictions; 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; failure to effectively manage succession; 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; the impact of changing or uncertain interest rates on us and on the industries we serve; our ability to integrate acquired businesses successfully; and our ability to identify and consummate future investments and/or acquisitions on terms satisfactory to us or at all.

Further information on potential factors that could affect the financial results of the Company are included in the Company’s Form 10‑K and subsequent Form 10‑Qs, which are on file with the SEC. The Company disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.



About Bentley Systems

Bentley Systems (Nasdaq: BSY) is the infrastructure engineering software company. We provide innovative software to advance the world’s infrastructure – sustaining both the global economy and environment. Our industry-leading software solutions are used by professionals, and organizations of every size, for the design, construction, and operations of roads and bridges, rail and transit, water and wastewater, public works and utilities, buildings and campuses, mining, and industrial facilities. Our offerings, powered by the iTwin Platform for infrastructure digital twins, include MicroStation and Bentley Open applications for modeling and simulation, Seequent’s software for geoprofessionals, and Bentley Infrastructure Cloud encompassing ProjectWise for project delivery, SYNCHRO for construction management, and AssetWise for asset operations. Bentley Systems’ 5,200 colleagues generate annual revenues of more than $1 billion in 194 countries.
www.bentley.com

© 2024 Bentley Systems, Incorporated. Bentley, the Bentley logo, AssetWise, Bentley Infrastructure Cloud, Bentley Open, Cohesive, iTwin, MicroStation, ProjectWise, Seequent, and SYNCHRO are either registered or unregistered trademarks or service marks of Bentley Systems, Incorporated or one of its direct or indirect wholly owned subsidiaries. All other brands and product names are trademarks of their respective owners.


BENTLEY SYSTEMS, INCORPORATED
Consolidated Balance Sheets
(in thousands)
(unaudited)

June 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$51,278 $68,412 
Accounts receivable282,918 302,501 
Allowance for doubtful accounts(9,099)(8,965)
Prepaid income taxes18,487 12,812 
Prepaid and other current assets43,101 44,797 
Total current assets386,685 419,557 
Property and equipment, net36,756 40,100 
Operating lease right-of-use assets34,868 38,476 
Intangible assets, net225,539 248,787 
Goodwill2,265,174 2,269,336 
Investments24,258 23,480 
Deferred income taxes206,259 212,831 
Other assets77,641 67,283 
Total assets$3,257,180 $3,319,850 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$23,901 $18,094 
Accruals and other current liabilities500,007 457,348 
Deferred revenues236,624 253,785 
Operating lease liabilities11,429 11,645 
Income taxes payable13,817 9,491 
Current portion of long-term debt— 10,000 
Total current liabilities785,778 760,363 
Long-term debt1,334,618 1,518,403 
Deferred compensation plan liabilities91,172 88,181 
Long-term operating lease liabilities26,950 30,626 
Deferred revenues15,259 15,862 
Deferred income taxes11,899 9,718 
Income taxes payable3,615 7,337 
Other liabilities3,383 5,378 
Total liabilities2,272,674 2,435,868 
Stockholders’ equity:
Common stock
2,997 2,963 
Additional paid-in capital1,176,630 1,127,234 
Accumulated other comprehensive loss
(93,264)(84,987)
Accumulated deficit(102,561)(161,932)
Non-controlling interest704 704 
Total stockholders’ equity984,506 883,982 
Total liabilities and stockholders’ equity
$3,257,180 $3,319,850 


BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)

Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Revenues:
Subscriptions$297,444 $259,243 $604,533 $537,088 
Perpetual licenses10,863 11,718 20,375 21,265 
Subscriptions and licenses308,307 270,961 624,908 558,353 
Services22,030 25,788 43,192 52,807 
Total revenues330,337 296,749 668,100 611,160 
Cost of revenues:
Cost of subscriptions and licenses42,432 41,156 82,650 82,087 
Cost of services20,761 25,270 42,373 51,523 
Total cost of revenues63,193 66,426 125,023 133,610 
Gross profit267,144 230,323 543,077 477,550 
Operating expenses:
Research and development65,709 70,117 134,080 137,917 
Selling and marketing57,129 54,364 111,515 106,505 
General and administrative54,854 39,258 101,336 86,065 
Deferred compensation plan883 3,777 6,682 7,923 
Amortization of purchased intangibles8,392 9,502 17,356 20,050 
Total operating expenses186,967 177,018 370,969 358,460 
Income from operations
80,177 53,305 172,108 119,090 
Interest expense, net(5,100)(9,484)(11,620)(20,576)
Other income, net
2,280 965 9,417 1,254 
Income before income taxes
77,357 44,786 169,905 99,768 
(Provision) benefit for income taxes
(5,330)3,899 (27,577)(5,593)
Equity in net income of investees, net of tax
19 — 28 — 
Net income
$72,046 $48,685 $142,356 $94,175 
Per share information:
Net income per share, basic
$0.23 $0.16 $0.45 $0.30 
Net income per share, diluted
$0.22 $0.15 $0.44 $0.29 
Weighted average shares, basic314,980,580 311,914,602 314,660,906 311,366,371 
Weighted average shares, diluted333,780,984 332,352,725 333,725,315 331,831,973 


BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Six Months Ended
June 30,
20242023
Cash flows from operating activities:
Net income
$142,356 $94,175 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization32,367 35,304 
Deferred income taxes8,666 (28,935)
Stock-based compensation expense41,759 37,588 
Deferred compensation plan6,682 7,923 
Amortization of deferred debt issuance costs3,750 3,646 
Change in fair value of derivative(2,361)663 
Foreign currency remeasurement loss (gain)
502 (144)
Other(1,715)3,530 
Changes in assets and liabilities, net of effect from acquisitions:
Accounts receivable14,330 49,171 
Prepaid and other assets(585)(364)
Accounts payable, accruals, and other liabilities41,622 41,969 
Deferred revenues(14,888)(1,792)
Income taxes payable, net of prepaid income taxes(4,930)14,085 
Net cash provided by operating activities
267,555 256,819 
Cash flows from investing activities:
Purchases of property and equipment and investment in capitalized software(6,689)(11,253)
Acquisitions, net of cash acquired (5,000)(10,299)
Purchases of investments(557)(8,200)
Other1,300 — 
Net cash used in investing activities
(10,946)(29,752)
Cash flows from financing activities:
Proceeds from credit facilities51,724 288,387 
Payments of credit facilities(143,752)(432,739)
Repayments of term loan(105,000)(2,500)
Payments of contingent and non-contingent consideration(451)(2,860)
Payments of dividends(35,851)(29,224)
Proceeds from stock purchases under employee stock purchase plan5,560 4,557 
Proceeds from exercise of stock options4,007 9,700 
Payments for shares acquired including shares withheld for taxes(9,626)(51,202)
Repurchases of Class B common stock under approved program(37,515)— 
Other(95)(95)
Net cash used in financing activities
(270,999)(215,976)
Effect of exchange rate changes on cash and cash equivalents(2,744)(59)
(Decrease) increase in cash and cash equivalents
(17,134)11,032 
Cash and cash equivalents, beginning of year68,412 71,684 
Cash and cash equivalents, end of period
$51,278 $82,716 


BENTLEY SYSTEMS, INCORPORATED
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except share and per share data)
(unaudited)

Reconciliation of operating income to Adjusted OI w/SBC and to Adjusted operating income:

Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Operating income
$80,177 $53,305 $172,108 $119,090 
Amortization of purchased intangibles11,521 12,625 23,711 26,360 
Deferred compensation plan883 3,777 6,682 7,923 
Acquisition expenses1,969 3,521 4,328 12,298 
Realignment expenses (income)
743 29 809 (1,950)
Adjusted OI w/SBC95,293 73,257 207,638 163,721 
Stock-based compensation expense21,856 17,670 41,193 36,868 
Adjusted operating income$117,149 $90,927 $248,831 $200,589 



Reconciliation of net income to Adjusted net income:

Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
$
EPS(1)
$
EPS(1)
$
EPS(1)
$
EPS(1)
Net income
$72,046 $0.22 $48,685 $0.15 $142,356 $0.44 $94,175 $0.29 
Non-GAAP adjustments, prior to income taxes:
Amortization of purchased intangibles
11,521 0.03 12,625 0.04 23,711 0.07 26,360 0.08 
Stock-based compensation expense
21,856 0.07 17,670 0.05 41,193 0.12 36,868 0.11 
Deferred compensation plan
883 — 3,777 0.01 6,682 0.02 7,923 0.02 
Acquisition expenses
1,969 0.01 3,521 0.01 4,328 0.01 12,298 0.04 
Realignment expenses (income)
743 — 29 — 809 — (1,950)(0.01)
Other income, net
(2,280)(0.01)(965)— (9,417)(0.03)(1,254)— 
Total non-GAAP adjustments, prior to income taxes34,692 0.10 36,657 0.11 67,306 0.20 80,245 0.24 
Income tax effect of non-GAAP adjustments(4,844)(0.01)(6,608)(0.02)(4,844)(0.01)(13,997)(0.04)
Equity in net income of investees, net of tax
(19)— — — (28)— — — 
Adjusted net income(2)
$101,875 $0.31 $78,734 $0.24 $204,790 $0.62 $160,423 $0.49 
Adjusted weighted average shares, diluted333,780,984332,352,725333,725,315331,831,973
(1)Adjusted EPS was computed independently for each reconciling item presented; therefore, the sum of Adjusted EPS for each line item may not equal total Adjusted EPS due to rounding.
(2)Adjusted EPS numerator includes $1,717 and $1,723 for the three months ended June 30, 2024 and 2023, respectively, and $3,440 for the six months ended June 30, 2024 and 2023 related to interest expense, net of tax, attributable to the convertible senior notes using the if‑converted method.


Reconciliation of cash flow from operations to Adjusted EBITDA:

Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
Cash flow from operations$62,586 $80,596 $267,555 $256,819 
Cash interest3,449 8,909 8,706 19,382 
Cash taxes11,304 11,966 22,847 17,999 
Cash deferred compensation plan distributions
1,963 1,704 2,436 2,125 
Cash acquisition expenses1,935 4,237 3,742 15,290 
Cash realignment costs3,971 — 11,488 — 
Changes in operating assets and liabilities38,813 (9,699)(54,519)(97,998)
Other(1)
(2,411)(2,164)(4,768)(4,084)
Adjusted EBITDA$121,610 $95,549 $257,487 $209,533 
(1) Includes receipts related to interest rate swap.



Reconciliation of total revenues and subscriptions revenues to total revenues and subscriptions revenues in constant currency:

Three Months Ended June 30, 2024Three Months Ended June 30, 2023
ActualImpact of Foreign Exchange at 2023 RatesConstant CurrencyActualImpact of Foreign Exchange at 2023 RatesConstant Currency
Total revenues$330,337 $1,271 $331,608 $296,749 $(354)$296,395 
Subscriptions revenues
$297,444 $1,077 $298,521 $259,243 $(331)$258,912 

Six Months Ended June 30, 2024Six Months Ended June 30, 2023
ActualImpact of Foreign Exchange at 2023 RatesConstant CurrencyActualImpact of Foreign Exchange at 2023 RatesConstant Currency
Total revenues$668,100 $428 $668,528 $611,160 $(479)$610,681 
Subscriptions revenues
$604,533 $316 $604,849 $537,088 $(473)$536,615