EXTON, Pa. — (BUSINESS WIRE) — August 9, 2022 — 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, 2022.

Second Quarter 2022 Financial Results

• Total revenues were $268.3 million, up 19.8% or 26.2% on a constant currency basis, year-over-year;
• Subscriptions revenues were $232.2 million, up 24.5% or 31.3% on a constant currency basis, year-over-year;
• Last twelve-month recurring revenues were $930.8 million, up 24.6% year-over-year;
• Last twelve-month recurring revenues dollar-based net retention rate was 109%, compared to 106% for the same period last year;
• Last twelve-month account retention rate was 98%, consistent with the same period last year;
• Annualized Recurring Revenue (“ARR”) was $971.9 million as of June 30, 2022, representing an ARR growth rate of 14% from June 30, 2021;
• GAAP operating income was $55.7 million, compared to $33.2 million for the same period last year;
• GAAP net income was $55.7 million, compared to $45.6 million for the same period last year. GAAP net income per diluted share was $0.17, compared to $0.14 for the same period last year; GAAP net income margin was 20.8%, compared to 20.4% for the same period last year;
• Adjusted Net Income was $73.8 million, compared to $74.5 million for the same period last year. Adjusted Net Income per diluted share was $0.22 compared to $0.23 for the same period last year;
• Adjusted EBITDA was $86.5 million, compared to $69.3 million for the same period last year. Adjusted EBITDA margin was 32.2%, compared to 31.0% for the same period last year; and
• Cash flow from operations was $67.0 million, compared to $16.2 million for the same period last year. 

Six Months Ended June 30, 2022 Financial Results

• Total revenues were $543.8 million, up 21.9% or 26.9% on a constant currency basis, year-over-year;
• Subscriptions revenues were $473.4 million, up 26.4% or 31.6% on a constant currency basis, year-over-year;
• GAAP operating income was $112.3 million, compared to $88.9 million for the same period last year;
• GAAP net income was $112.1 million, compared to $102.6 million for the same period last year. GAAP net income per diluted share was $0.35, compared to $0.32 for the same period last year. GAAP net income margin was 20.6%, compared to 23.0% for the same period last year;
• Adjusted Net Income was $153.4 million, compared to $138.6 million for the same period last year. Adjusted Net Income per diluted share was $0.46 compared to $0.43 for the same period last year;
• Adjusted EBITDA was $184.1 million, compared to $152.3 million for the same period last year. Adjusted EBITDA margin was 33.9%, compared to 34.2% for the same period last year; and
• Cash flow from operations was $168.7 million, compared to $149.0 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, “I am pleased to report that Bentley Systems’ operating performance continues to accord with our annual financial outlook for 2022, abstracting from foreign exchange fluctuations. While exchange rates obviously affect reported revenues, our adjusted EBITDA margin is substantially naturally hedged. In constant currency, most importantly, the quarter’s year‑over‑year business performance ARR growth rate of 11.5%, which includes the write‑down in 22Q2 of the remaining half (0.5%) of our ARR in Russia, remains consistent with our expectations for the year. The 22Q1 acquisition of Power Line Systems contributed, as expected, a further 2.5% in ARR growth rate.”

Mr. Bentley continued, “As to further ‘macro’ concerns, new business in China stabilized after 22Q1’s ‘counter‑globalism’ setback, and new business in Central Europe and Southern Europe improved. Beyond infrastructure engineering’s intrinsic resilience even with respect to currently forecasted slowdowns in major economies, Bentley Systems’ second half of 2022 is poised to benefit from our flourishing platform acquisitions for environmental opportunities (Seequent) and grid opportunities (Power Line Systems). I believe that investing in going digital for infrastructure engineering will prove an enduring global imperative.”

CFO Werner Andre said, “To quantify the currency headwinds from the dollar strengthening during the quarter, our 22Q2 reported GAAP total revenues of $268.3 million would have been $275.4 million, if the exchange rates used in our annual financial outlook had remained in effect.

“Although our 2022 financial outlook has not materially changed (including after netting year‑to‑date acquisitions and divestitures, and discontinuation of our business operations in Russia): if recent exchange rates would prevail for the remainder of the year, our 2022 full year total revenues as reported would be negatively impacted by about $25 million, relative to the revenues based on the exchange rates in effect when we determined our full year 2022 outlook at the beginning of the year, with adjusted EBITDA margin still approximately 33%.”

Second Quarter 2022 Financial Developments

On May 11, 2022, we announced that our board of directors approved the BSY Stock Repurchase Program authorizing us to repurchase up to $200 million of the Company’s Class B Common Stock through June 30, 2024. The BSY Stock Repurchase Program is used to offset dilution from the issuance of the Company’s Class B Common Stock under our stock-based plans to enhance stockholder value. For the six months ended June 30, 2022, we repurchased 463,001 shares for $13.2 million.

Operating Results Call Details

Bentley Systems will host a live Zoom video webinar on August 9, 2022 at 8:15 a.m. Eastern time to discuss operating results for its second quarter and six months ended June 30, 2022.

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_AVJPJDHBReGQNwGMtyVR0g. 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 margin is determined by dividing GAAP net income 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.