Revenue Growth - Total recurring revenues for the last twelve months reached $834,150,000, an increase of 31% from $696,662,000 in the previous year[330]. - The annualized recurring revenues (ARR) growth rate was 26%, compared to 8% in the prior year[330]. - The recurring revenues dollar-based net retention rate improved to 109%, up from 107% in the previous year[330]. - Subscriptions accounted for 84% of total revenues, with recurring revenues making up 86% of total revenues[313]. - Total revenues increased by $163,502, or 20.4%, to $965,046 for the year ended December 31, 2021, primarily driven by improvements in business performance and acquisitions[400]. - Subscription revenues reached $812,807, an increase of $133,534 or 19.7% compared to the previous year[400]. - Service revenues grew by 52.8% to $99,159, reflecting strong demand and positive foreign currency effects[400]. Account Retention and Diversification - The account retention rate remained high at 98% for the last twelve months[330]. - The company has a highly diversified account base, with the largest account contributing no more than 2.5% of total revenues[313]. - The recurring revenues dollar-based net retention rate for the year ended December 31, 2021, was 86%, highlighting the company's success in growing revenues within existing accounts[338]. Research and Development - The company continues to invest significantly in research and development to enhance existing offerings and develop new technologies[310]. - Research and development expenses increased to $220,915, up from $185,515 in 2020, indicating continued investment in innovation[397]. - Research and development expenses increased by $35,400, or 19.1%, for the year ended December 31, 2021, with a constant currency increase of 16.5%[418]. Financial Performance - Adjusted EBITDA for the year ended December 31, 2021, was $324.948 million, an increase of 22% from $266.376 million in 2020[342]. - Adjusted Net Income for the year ended December 31, 2021, was $266.940 million, compared to $192.812 million in 2020, reflecting a significant increase[343]. - For the year ended December 31, 2021, net income decreased by $33,329 to $93,192 compared to $126,521 in 2020[433]. - Adjusted EBITDA for the year ended December 31, 2021 increased by $58,572 to $324,948, representing 33.7% of total revenues[434]. - Adjusted Net Income for the year ended December 31, 2021 increased by $74,128 to $266,940, accounting for 27.7% of total revenues[435]. Acquisitions - The company completed the acquisition of Seequent for approximately $883.336 million in cash and stock, incurring $16.557 million in related expenses[358]. - The company completed 13 acquisitions in 2021, compared to six in 2020, indicating a strategy of growth through acquisitions[364]. - The company plans to selectively acquire adjacent software solutions and new technologies to enhance its existing portfolio[364]. Expenses and Costs - Total cost of revenues was $216,539, up from $167,155 in 2020, with costs of subscriptions and licenses at $124,321 and costs of services at $92,218[397]. - Selling and marketing expenses rose to $162,240, reflecting strategic investments in global business systems[397]. - General and administrative expenses increased to $150,116, with expectations of continued growth as a public company[387]. - Total operating expenses for the year ended December 31, 2021, were $653,918, an increase of $169,679, or 35.0%[418]. - Cost of revenues increased by $49,384, or 29.5%, for the year ended December 31, 2021, with a constant currency increase of 26.1%[414]. Cash and Financing - As of December 31, 2021, total cash and cash equivalents amounted to $329,337 million, a significant increase from $122,006 million in 2020[477]. - The Credit Facility was increased from $500,000 million to $850,000 million, with a maturity date extended to November 15, 2025[478]. - A new $200,000 million senior secured term loan was established with a maturity of November 15, 2025, requiring quarterly principal repayments starting at $1,250[480]. - The company incurred $15,065 million in expenses related to the 2027 Notes offering, using $536,062 million to repay outstanding indebtedness under the Credit Facility[492]. - As of December 31, 2021, the company had $849,850 million available under the Credit Facility[484]. Currency Impact - In 2021, 47% of total revenues and 42% of total operating expenses were denominated in various foreign currencies, impacting financial results due to exchange rate fluctuations[361].

Bentley Systems, Incorporated (BSY) Q3 2021 Earnings Conference Call November 9, 2021 8:15 AM ET Company Participants Carey Mann - Vice President-Investor Relations Greg Bentley - Chief Executive Officer David Hollister - Chief Financial Officer Conference Call Participants Matthew Broome - Mizuho Securities Jason Celino - KeyBanc Capital Markets Matt Swanson - RBC Capital Markets Gal Munda - Berenberg Capital Markets Joe Vruwink - Baird Kash Rangan - Goldman Sachs Carey Mann Good morning, everyone and than ...

Bentley Systems' 21Q3 Operating Results Greg Bentley, CEO David Hollister, CFO 1 | © 2021 Bentley Systems, Incorporated © 2021 Bentley Systems, Incorporated Disclaimer • This presentation 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 or made during this presentation, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ Title of each class Trading Symbol Name of each exchange on which registered Class B Common Stock, par value $0.01 per share BSY The Nasdaq Stock Market LLC FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 1 ...

Bentley Systems, Inc. (NASDAQ:BSY) Q2 2021 Earnings Conference Call August 10, 2021 8:15 AM ET Company Participants Carey Mann – Vice President-Investor Relations Greg Bentley – Chief Executive Officer Nicholas Cumins – Chief Product Officer David Hollister – Chief Financial Officer Conference Call Participants Matt Hedberg – RBC Jason Celino – KeyBanc Matthew Broome – Mizuho Kash Rangan – Goldman Sachs Joe Vruwink – Baird Jay Vleeschhouwer – Griffin Carey Mann Good morning, everyone. And thank you for join ...

Press Release 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 Bentley Systems Announces Operating Results for the Second Quarter of 2021 and Updates Its 2021 Financial Outlook EXTON, Pa. – August 10, 2021 – Bentley Systems, Incorporated (Nasdaq: BSY) ("Bentley Systems" or the "Company"), the infrastructure engineering software company, today announced operating results for its second quar ...

PART I. FINANCIAL INFORMATION [Item 1. Unaudited Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) This section presents Bentley Systems, Incorporated's unaudited consolidated financial statements as of June 30, 2021, and for the three and six-month periods then ended [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2021, total assets increased to $2.45 billion from $1.13 billion, primarily due to acquisitions, while total liabilities rose to $1.98 billion from $784 million due to new long-term debt Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$2,454,115** | **$1,126,035** | | Goodwill | $1,593,670 | $581,174 | | Intangible assets, net | $262,234 | $45,627 | | **Total Liabilities** | **$1,982,301** | **$784,436** | | Long-term debt | $1,269,842 | $246,000 | | **Total Stockholders' Equity** | **$471,814** | **$341,599** | - The significant increase in Goodwill and Intangible assets is primarily attributable to the acquisition of Seequent Holdings Limited in June 2021[33](index=33&type=chunk)[73](index=73&type=chunk) - The increase in long-term debt is due to the private offerings of **$690 million** in 0.125% convertible senior notes due 2026 and **$575 million** in 0.375% convertible senior notes due 2027[34](index=34&type=chunk)[35](index=35&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2021, total revenues grew 21.0% year-over-year to $222.9 million, with net income increasing to $44.9 million, primarily driven by subscription revenues despite increased operating expenses Key Operating Results (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$222,931** | **$184,290** | **$444,936** | **$378,980** | | Subscriptions Revenue | $185,452 | $157,655 | $373,577 | $327,837 | | Gross Profit | $169,480 | $147,585 | $342,196 | $305,016 | | Income from Operations | $32,223 | $44,591 | $87,870 | $90,552 | | **Net Income** | **$44,910** | **$39,076** | **$101,916** | **$68,745** | | Diluted EPS | $0.14 | $0.13 | $0.32 | $0.23 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2021, net cash from operations was $149.0 million, while investing activities used $1.01 billion primarily for acquisitions, funded by $866.5 million from financing activities Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $149,022 | $136,182 | | Net cash used in investing activities | ($1,008,001) | ($78,979) | | Net cash provided by (used in) financing activities | $866,510 | ($52,556) | | **Increase in cash and cash equivalents** | **$9,148** | **$4,415** | - Investing activities were dominated by **$1.0 billion** used for acquisitions, net of cash acquired, a substantial increase from **$67.6 million** in the prior year period[26](index=26&type=chunk) - Financing activities were primarily driven by **$1.23 billion** in proceeds from convertible senior notes, partially offset by repayments of credit facilities (**$790.8 million**) and the purchase of capped call options (**$51.6 million**)[26](index=26&type=chunk) [Notes to Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies and significant events, including the Seequent acquisition, new convertible notes, and the early adoption of ASU 2020-06 for convertible instruments - On June 17, 2021, the Company completed the acquisition of Seequent Holdings Limited for **$911.0 million** in cash (net of cash acquired) plus 3,141,342 shares of Class B Common Stock[33](index=33&type=chunk) - In 2021, the Company completed two private offerings of convertible senior notes: **$690 million** of 0.125% notes due 2026 in January, and **$575 million** of 0.375% notes due 2027 in June[34](index=34&type=chunk)[35](index=35&type=chunk) - The Company early adopted ASU 2020-06, which simplifies the accounting for convertible instruments and requires the use of the if-converted method for calculating diluted EPS[45](index=45&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the three and six months ended June 30, 2021, highlighting strong revenue growth, the Seequent acquisition's impact, and new debt financing [Key Business Metrics](index=54&type=section&id=Key%20Business%20Metrics) As of June 30, 2021, constant currency Annualized Recurring Revenues (ARR) grew 23%, significantly impacted by the Seequent acquisition, while account retention remained high at 98% Key Business Metrics as of June 30 | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Last twelve-months recurring revenues | $746,168 thousand | $665,659 thousand | | ARR growth rate (Constant Currency) | 23% | 11% | | Account retention rate | 98% | 98% | | Recurring revenues dollar-based net retention rate | 106% | 110% | - The ARR growth rate for the twelve months ended June 30, 2021, was favorably impacted by **13%** from the Seequent acquisition[263](index=263&type=chunk) [Results of Operations](index=66&type=section&id=Results%20of%20Operations) For Q2 2021, total revenues increased 21.0% to $222.9 million, driven by subscriptions, while operating expenses rose significantly due to acquisition costs, and net income benefited from a tax benefit Revenue Growth Comparison (Q2 2021 vs Q2 2020) | Revenue Type | Q2 2021 (in thousands) | Q2 2020 (in thousands) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | Subscriptions | $185,452 | $157,655 | 17.6% | 13.5% | | Perpetual licenses | $11,391 | $12,379 | (8.0)% | (12.7)% | | Services | $26,088 | $14,256 | 83.0% | 75.1% | | **Total Revenues** | **$222,931** | **$184,290** | **21.0%** | **16.5%** | - General and administrative expenses for Q2 2021 increased by **64.5%** (**61.4%** in constant currency) compared to Q2 2020, primarily due to a **$9.2 million** increase in acquisition and integration costs related to the Seequent acquisition[351](index=351&type=chunk)[356](index=356&type=chunk) - The effective income tax rate was **(79.8)%** for Q2 2021, compared to **9.7%** for Q2 2020, primarily due to a discrete tax benefit of **$29.0 million** associated with stock-based compensation in Q2 2021[367](index=367&type=chunk) [Liquidity and Capital Resources](index=78&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity sources include cash from operations and its credit facility, with significant financing activities in H1 2021 through convertible notes to fund the Seequent acquisition and repay debt - The company completed two major financing activities in H1 2021: a **$690 million** convertible note offering due 2026 and a **$575 million** offering due 2027[283](index=283&type=chunk) - The credit facility was amended to increase the senior secured revolving loan facility from **$500 million** to **$850 million** and extend the maturity to November 2025[379](index=379&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Operating activities | $149,022 | $136,182 | | Investing activities | ($1,008,001) | ($78,979) | | Financing activities | $866,510 | ($52,556) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure has not changed significantly from its 2020 Annual Report, with the exception of new risks associated with its convertible senior notes - The fair value of the newly issued 2026 and 2027 Convertible Notes is subject to interest rate risk and market risk related to the company's Class B Common Stock price[428](index=428&type=chunk) - Capped call options were purchased concurrently with the issuance of the convertible notes to reduce potential shareholder dilution upon conversion[428](index=428&type=chunk) [Item 4. Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[432](index=432&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, internal controls[433](index=433&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=88&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business but does not anticipate any material adverse effects on its financial condition or results of operations - The company is not currently involved in any material legal proceedings[437](index=437&type=chunk) [Item 1A. Risk Factors](index=88&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the company's 2020 Annual Report on Form 10-K, which could materially affect the business - The company directs investors to review the risk factors detailed in its 2020 Annual Report on Form 10-K for potential risks that could materially affect the business[439](index=439&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=88&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2021, the company issued Class B Common Stock for the Seequent acquisition and its deferred compensation plan, exempt from registration under the Securities Act - Issued **3,141,342** shares of Class B Common Stock for the acquisition of Seequent Holdings Limited[440](index=440&type=chunk) - Issued **1,862,576** shares of Class B Common Stock related to distributions from the company's nonqualified deferred compensation plan[440](index=440&type=chunk) [Item 6. Exhibits](index=89&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including legal documents related to new convertible notes, the amended credit agreement, and officer certifications - Key exhibits filed include legal documents related to the new 2027 convertible notes, the amended credit agreement, and required officer certifications[443](index=443&type=chunk)

Financial Data and Key Metrics Changes - The company's Q1 2021 revenues reached $222 million, representing a 14% increase compared to the same quarter last year, primarily driven by subscription growth [65][66]. - Subscription revenues, which account for 85% of total revenues, grew by 10.5% year-over-year, with minimal contribution from acquisitions and a 4% boost from currency fluctuations [65][66]. - GAAP operating income for Q1 2021 was $55.6 million, up 21% from the previous year, while adjusted EBITDA grew by 43% to $82.8 million, yielding a margin of slightly better than 37% [75][76]. Business Line Data and Key Metrics Changes - Subscription growth was led by ProjectWise, asset and network performance, civil design applications, and PLAXIS geotechnical offerings [27][65]. - Professional Services revenues increased by $10.1 million or 74% year-over-year, largely due to acquisitions made in 2020 [66][68]. - Perpetual licenses revenues declined by approximately $700,000, now constituting less than 5% of total revenues [66]. Market Data and Key Metrics Changes - The company noted a slight decline in application usage in the commercial facility sector and a greater decline in the industrial resources sector, while public works and utilities showed slight increases [18][19]. - New accounts contributed 3% to year-over-year quarterly revenue growth, indicating a modest decline in existing account growth due to the pandemic's impact on the previous year's metrics [72][73]. Company Strategy and Development Direction - The company is focused on transitioning from ELS to E365 subscription models, which are expected to provide more predictable revenue streams and align costs with workload [10][106]. - Initiatives to enhance infrastructure digital twins are seen as a way to improve global economies and environments, aligning with UN sustainable development goals [29][30]. - The company is investing in self-service fulfillment and educational initiatives to attract future infrastructure professionals, which is expected to enhance brand recognition and recruitment [25][26]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year 2021 operating margin outlook, despite the ongoing pandemic-related cost savings [9][76]. - The anticipated economic recovery and return to in-person work environments are expected to drive new business growth, particularly in enterprise-level opportunities [10][11]. - The company maintains its full-year revenue outlook of $895 million to $920 million, reflecting growth of 11.7% to 14.8% [69][98]. Other Important Information - The company successfully executed substantial financing transactions, securing an $850 million credit facility and $690 million in convertible notes to enhance its capital structure for growth [82][84]. - The acquisition of Seequent is expected to close in Q2 2021, with anticipated contributions to the company's financial outlook [99]. Q&A Session Summary Question: Will mandates help the adoption of digital twins in infrastructure? - Management believes that government mandates for digital twins in public infrastructure could enhance ROI and safety, especially for government-funded projects [102][103]. Question: What is the ideal future model for transitioning from ELS to E365? - Management anticipates that all ELS licenses will eventually convert to E365, with a cautious approach taken initially due to market volatility concerns [105][106]. Question: How durable is the strength in the SMB market? - Management is encouraged by the rapid addition of 1,000 new SMB accounts, viewing this segment as a significant growth opportunity, similar to competitors like Autodesk [110][112]. Question: How should investors measure progress in digital twins? - Management suggests using case studies from the company's Year in Infrastructure awards to assess the qualitative progress of digital twin adoption [113].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39548 ___________________________________ BENTLEY SYSTE ...

Bentley Systems Incorporated (NASDAQ:BSY) Q4 2020 Earnings Conference Call March 2, 2021 8:30 AM ET Company Participants Carey Mann – Vice President-Investor Relations Greg Bentley – Chief Executive Officer David Hollister – Chief Financial Officer Conference Call Participants Jason Celino – KeyBank Matt Hedberg – RBC Joe Vruwink – Baird Brian Essex – Goldman Sachs Brad Sills – Bank f America Merrill Lynch Gal Munda – Berenberg Capital Markets Matt Broome – Mizuho Carey Mann Good morning, everyone, and than ...