Bentley Systems Announces Retirement of Founder Keith Bentley and Promotion of Julien Moutte to Chief Technology Officer Former CFO David Hollister Retiring as Chief Investment Officer EXTON, Pa. – Feb 28, 2023 – Bentley Systems, Incorporated (Nasdaq: BSY) ("Bentley Systems" or the "Company"), the infrastructure engineering software company, today announced forthcoming retirements: • As of April 2023 founder Keith Bentley will step down as Chief Technology Officer to assume the role of Technology Advisor th ...

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Financial Data and Key Metrics Changes - Total revenues for Q3 2022 were $268 million, growing 7% year-over-year or 15% on a constant currency basis [62] - Year-to-date total revenues grew 17% or 23% on a constant currency basis, with almost all revenue growth coming from subscriptions, which represented 88% of total revenues during Q3 2022 [62] - Adjusted EBITDA for Q3 grew approximately 6% over Q3 2021, with a year-to-date adjusted EBITDA margin of 33.7% [71] Business Line Data and Key Metrics Changes - Subscription revenue grew approximately 18% year-over-year on a constant currency basis, supported by the E365 program and Virtuosity subscriptions [62][63] - The account retention rate rounded up to 99%, with a net retention rate of 110% driven by the E365 consumption-based commercial model [64] Market Data and Key Metrics Changes - Constant currency revenue growth was 12% in the Americas, 14% in EMEA, and 23% in APAC for Q3 2022 [62] - The U.S. civil engineering firms showed accelerating new business momentum, correlating with funding from the Infrastructure Investment and Jobs Act [15][32] Company Strategy and Development Direction - The company is focusing on enhancing its E365 program, which is becoming increasingly important for enterprise accounts, providing tailored solutions and real-time support [40][42] - A strategic alliance was announced with Fukui in Japan to leverage local expertise and accelerate digital transformation in infrastructure engineering [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, citing strong conditions and enthusiasm from quota carriers, although concerns remain regarding geopolitical issues in China [78] - The company reaffirmed its full-year constant currency ARR growth outlook despite challenges from exiting Russia and associated impacts in China [14][65] Other Important Information - The company reported a significant year-over-year currency headwind, with GAAP revenues negatively impacted by approximately $40 million due to the strengthening U.S. dollar [67] - Insider ownership remains strong, with the Bentley family holding a total economic ownership interest of 59% [50] Q&A Session Summary Question: What was the incremental FX headwind to ARR during the quarter? - Management indicated that calculating the FX headwind for ARR was complicated and did not provide a specific figure [76] Question: Does new business acceleration serve as a leading indicator for renewals? - Management noted that while renewals are still significant, the E365 program has reduced the relative importance of renewals in Q4 [82] Question: What was the magnitude of the EPC headwind absorbed in ARR? - Management quantified the EPC work subsidence at about 20%, but noted optimism for recovery in 2023 [84] Question: How material can the new growth engine Virtuosity be for long-term ARR growth? - Management believes that the SMB segment represents a significant untapped market, with potential for substantial growth in the coming years [85] Question: How are various regions in Europe performing? - Management highlighted that Northern Europe has improved, while Southern Europe is lagging, with India showing exceptional growth [88]

Revenue Performance - The company's total revenues for 2021 were diversified by account type, size, and geography, with subscriptions representing 84% of total revenues and recurring revenues accounting for 86% of total revenues [220]. - The annualized recurring revenues (ARR) for 2022 reached $983,656, an increase from $903,845 in 2021, reflecting a growth rate of 14% [237]. - For the twelve months ended September 30, 2022, 88% of the company's revenues were recurring revenues, highlighting the stability of its revenue model [242]. - Recurring revenues represented 88% of total revenues for the twelve months ended September 30, 2022, highlighting the importance of existing accounts for revenue growth [247]. - Total revenues for the three months ended September 30, 2022, were $268,332, an increase of 6.4% from $251,388 in the same period in 2021 [273]. - Total revenues for the three months ended September 30, 2022, increased by 6.7% to $268,332 compared to $251,388 in the same period of 2021 [276]. - For the nine months ended September 30, 2022, total revenues increased by 16.5% to $812,134, with subscription revenues growing by 20.2% to $708,731 [278]. Customer Retention and Growth - The account retention rate improved to 99% in 2022, up from 98% in 2021, indicating strong customer loyalty [237]. - The recurring revenues dollar-based net retention rate rose to 110% in 2022, compared to 106% in 2021, showcasing effective revenue growth from existing accounts [237]. - The account retention rate is a key indicator of long-term account relationships, reflecting the company's ability to retain its account base [246]. - The recurring revenues dollar-based net retention rate is a critical metric for assessing revenue growth within existing accounts, excluding new account contributions [247]. - The improvements in business performance were primarily driven by expansion within existing accounts and a 3% growth from new accounts, particularly in smaller- and medium-sized segments [281]. Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2022, was $89.74 million, compared to $84.47 million for the same period in 2021, representing a year-over-year increase of approximately 3.8% [250]. - Adjusted Net Income for the three months ended September 30, 2022, was $61.83 million, up from $56.29 million in the same period of 2021, indicating a year-over-year growth of about 9% [251]. - Net income for the three months ended September 30, 2022, was $36,997, a recovery from a net loss of $48,022 in the same period of 2021 [273]. - The company reported a net income as a percentage of total revenues of 18.4% for the nine months ended September 30, 2022, compared to 7.8% for the same period in 2021 [319]. - Adjusted EBITDA for the three months ended September 30, 2022, increased by $5,272 to $89,740, representing 33.4% of total revenues, compared to 33.6% in the same period of 2021 [321]. - Adjusted Net Income for the three months ended September 30, 2022, increased by $5,536 to $61,825, accounting for 23.0% of total revenues, up from 22.4% in the same period of 2021 [322]. Expenses and Costs - Operating expenses decreased significantly to $153,605 for the three months ended September 30, 2022, from $234,696 in the same period of 2021 [273]. - Cost of subscriptions and licenses for the three months ended September 30, 2022, increased by 20.3% to $37,371, mainly due to headcount-related costs and cloud-related expenses [297]. - Research and development expenses increased to $63,827 for the three months ended September 30, 2022, from $57,334 in the same period of 2021, indicating a focus on innovation [273]. - Selling and marketing expenses for the nine months ended September 30, 2022, rose by $26,830, or 23.4%, driven by increases in salaries and promotional costs [302]. - General and administrative expenses increased by $18,748, or 17.0%, for the nine months ended September 30, 2022, mainly due to headcount-related costs [302]. Acquisitions and Investments - The company completed four acquisitions in the nine months ended September 30, 2022, compared to 12 acquisitions in the same period of 2021 [266]. - The acquisition of Power Line Systems on January 31, 2022, cost $695,968 in cash, significantly impacting the financial results for the nine months ended September 30, 2022 [266]. - The company expects to invest up to $100 million over five years in iTwin Ventures for technology companies focused on infrastructure digital twin solutions [323]. - The company repatriated $150,000 of undistributed previously taxed earnings from foreign subsidiaries to fund the acquisition of Power Line Systems [327]. Market and Currency Impact - The company paused sales in Russia and Belarus due to the Russia-Ukraine war, resulting in a reduction of ARR by approximately $11,190 [240]. - 47% of total revenues in 2021 were denominated in various foreign currencies, which affects financial results due to currency fluctuations [270]. - The company recorded a foreign exchange loss of $(18,815) for the nine months ended September 30, 2022, primarily from U.S. Dollar denominated transactions [315]. Financing and Capital Structure - The company has a Credit Facility providing for an $850,000 senior secured revolving loan and a $200,000 senior secured term loan, with $505,189 available as of September 30, 2022 [331][333]. - The weighted average interest rate under the Credit Facility was 4.34% for the three months ended September 30, 2022, compared to 2.33% in the same period of 2021 [336]. - The company completed a private offering of $575,000 of 0.375% convertible senior notes due 2027, with interest payable semi-annually [337]. - The effective interest rate for the 2027 Notes is 0.864% and for the 2026 Notes is 0.658% [353][353]. - As of September 30, 2022, the company was in compliance with all covenants in both the 2026 and 2027 Notes [344][354].

Bentley Systems, Incorporated (NASDAQ:BSY) Q2 2022 Earnings Conference Call August 9, 2022 8:15 AM ET Company Participants Michael Fischette - Vice President, Deputy General Counsel Greg Bentley - Chief Executive Officer Claire Rutkowski - Chief Information Officer Nicholas Cumins - Chief Operating Officer David Hollister - Chief Investment Officer Werner Andre - Chief Financial Officer Conference Call Participants Matt Hedberg - RBC Joe Vruwink - Baird Matthew Broome - Mizuho Kristen Owen - Oppenheimer And ...

Revenue and Growth - Total revenues for 2021 were diversified by account type, size, and geography, with subscriptions representing 84% of total revenues and recurring revenues accounting for 86%[210] - Annualized recurring revenues (ARR) for 2022 reached $971,876, up from $882,415 in 2021, reflecting a growth rate of 14%[227] - The last twelve months recurring revenues increased by $183,639 compared to the previous period, primarily due to growth in ARR and new account additions[232] - Over 70% of total revenues in 2021 came from organizations that have been accounts for over ten years, indicating a loyal customer base[210] - Recurring revenues represented 88% of total revenues for the twelve months ended June 30, 2022, highlighting the importance of the recurring revenues dollar-based net retention rate as a measure of revenue growth within existing accounts[237] - The company's ARR growth rate was positively impacted by 2.5% due to the onboarding from the acquisition of Power Line Systems during the twelve months ended June 30, 2022[234] - The company anticipates continued growth in subscription revenues as it transitions historically classified services revenues into subscriptions for accounts converting to the E365 offering[271] Financial Performance - Adjusted EBITDA for the three months ended June 30, 2022, was $86,521, compared to $69,334 for the same period in 2021, reflecting a significant increase[240] - Adjusted Net Income for the three months ended June 30, 2022, was $73,808, slightly down from $74,463 in the same period of 2021[247] - The company reported a net income of $55,673 for the three months ended June 30, 2022, compared to $45,627 for the same period in 2021[245] - For the three months ended June 30, 2022, total revenues increased to $268,285, representing a 19.8% growth compared to $223,921 in the same period of 2021[262] - Net income for the three months ended June 30, 2022 was $55,673, compared to $45,627 in the same period of 2021, indicating a 21.9% increase[262] - For the six months ended June 30, 2022, net income increased by $9,428, or 9.2%, compared to the same period in 2021, totaling $112,061[305] Expenses and Costs - Operating expenses for the three months ended June 30, 2022 totaled $152,874, an increase from $137,257 in the prior year, driven by higher research and development costs[262] - The cost of subscriptions and licenses for the three months ended June 30, 2022, increased by 23.2% to $36,806 million, primarily due to headcount-related costs and amortization expenses[284] - Research and development expenses for the three months ended June 30, 2022, increased by 22.9% to $64,866 million, mainly due to headcount-related costs from the Seequent acquisition[289] - Selling and marketing expenses for the three months ended June 30, 2022, increased by 30.5% to $49,617 million, driven by headcount-related costs and promotional expenses[292] - The total operating expenses for the three months ended June 30, 2022, increased by 11.4% to $152,874 million compared to $137,257 million in the same period of 2021[289] Market and Geographic Performance - The Americas region saw a revenue increase of 27.9% to $144,359 million for the three months ended June 30, 2022, driven by subscription revenues from acquisitions of approximately $17,600 million[275] - The EMEA region experienced an 8.2% revenue increase to $74,800 million for the three months ended June 30, 2022, with subscription revenues from the Seequent acquisition contributing approximately $4,300 million[277] - Approximately 47% of total revenues in 2021 were denominated in foreign currencies, impacting financial results due to fluctuations in exchange rates[259] - The company reported a foreign exchange loss of $4,717 for the three months ended June 30, 2022, compared to a gain of $(1,406) in the same period of 2021[254] Acquisitions and Investments - The company completed two acquisitions in the first half of 2022, including Power Line Systems for $695,968, which significantly impacted financial results[257] - The company has a high account retention rate of 98% and a recurring revenues dollar-based net retention rate of 109%[227] - The company continues to invest significantly in research and development to enhance existing offerings and develop new technologies[208] - The company expects to invest up to $100 million in corporate venture capital funding over five years for technology companies relevant to infrastructure digital twin solutions[308] Debt and Financing - The company has cash and cash equivalents totaling $93,411 million as of June 30, 2022, down from $329,337 million on December 31, 2021[315] - The company has an $850,000 million senior secured revolving loan facility and a $200,000 million senior secured term loan, both maturing on November 15, 2025[316] - The weighted average interest rate under the Credit Facility was 2.89% for the three months ended June 30, 2022, compared to 2.11% for the same period in 2021[322] - The company incurred $540 million in debt issuance costs related to the 2021 Term Loan[317] - As of June 30, 2022, the company had $455,976 million available under the Credit Facility, down from $849,850 million on December 31, 2021[318] - The company completed a private offering of $575,000 million of 0.375% convertible senior notes due 2027, with an effective interest rate of 0.864%[323][329] Other Financial Metrics - The effective tax rate for the three months ended June 30, 2022, was (9.1)%, compared to (75.9)% in the same period of 2021[303] - The company reported a total other income (expense), net of $3,497 for the three months ended June 30, 2022, compared to $(3,777) in the same period of 2021[302] - The company incurred acquisition expenses of $3,856 for the three months ended June 30, 2022, related to the acquisition of Power Line Systems[251] - The company recorded a swap related asset at fair value of $29,607 million as of June 30, 2022, compared to $10,117 million on December 31, 2021[320]

Bentley Systems' 22Q1 Operating Results Greg Bentley Chief Executive Officer Nicholas Cumins Chief Operating Officer David Hollister Chief Investment Officer Werner Andre Chief Financial Officer © 2022 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 ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2022 were $275.5 million, representing a 24% increase year-over-year, primarily driven by subscription growth which accounted for approximately 88% of total revenues and grew by 28% [45][46] - Last 12 months recurring revenues increased by 25%, now comprising 87% of total revenues, with a 98% account retention rate and a net recurring revenue retention rate of 108% [50][51] - GAAP operating income for Q1 2022 was $56.6 million, up 2% from Q1 2021, with adjusted EBITDA growth of 18% reflecting a margin of 35% [51][52] Business Line Data and Key Metrics Changes - The acquisition of Seequent and Power Line Systems contributed significantly to growth, with PLS showing a 25% ARR growth over the prior year within just two months of acquisition [36][45] - Professional Services revenues increased by 3% year-over-year, while perpetual license revenues remained flat, indicating a shift in preference towards subscription offerings [46][48] Market Data and Key Metrics Changes - New business accelerated in the Middle East, Australia, New Zealand, and India, while Europe saw a decline due to lower consumption growth in E365 accounts [12][13] - The impact of geopolitical tensions, particularly the war in Ukraine, led to a pause in marketing efforts in Russia, which represented about 1% of global ARR, resulting in a reduction of $5 million in ARR [12][49] Company Strategy and Development Direction - The company is focusing on enhancing its digital offerings and expanding its presence in the SMB segment, which has shown significant growth potential [18][19] - Strategic acquisitions, such as ADINA and PLS, are aimed at strengthening the product portfolio and enhancing R&D capabilities [14][28] - The company is adapting to local market conditions in China through joint ventures to better align with local preferences and regulations [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite geopolitical challenges and economic uncertainties, maintaining the full-year 2022 financial outlook [27][49] - The company anticipates that the rebound in industrial CapEx driven by energy security imperatives will positively impact ARR and revenue growth [9][24] Other Important Information - The company reported a cash conversion ratio from adjusted EBITDA of 104%, indicating strong cash flow efficiency [56] - The net debt senior leverage was 1.4 times as of March 31, 2022, reflecting a decrease from the previous quarter [58][59] Q&A Session Summary Question: How to interpret performance in the quarter regarding organic business? - Management clarified that the impact from Russia and China was less than 200 basis points, with a more significant effect on ARR than on revenue [61][62] Question: Insights on the strength of PLS and its implications for infrastructure investment? - Management noted that while PLS showed strong growth, it is too early to extrapolate broader trends from just two months of performance [65][66] Question: How did Bentley perform during prior economic downturns? - Historical performance showed resilience, with revenues declining only slightly during past crises, indicating a shift towards more stable revenue streams [70][71] Question: Outlook for the business pipeline and demand? - Management expressed optimism about the demand for digital solutions among civil and structural engineers, despite geopolitical disruptions [81][82]

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 March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) ...

Bentley Systems, Incorporated (NASDAQ:BSY) Q4 2021 Earnings Conference Call March 1, 2022 8:15 AM ET Company Participants Carey Mann - Vice President, Investor Relations Greg Bentley - Chief Executive Officer Werner Andre - Chief Financial Officer Nicholas Cumins - Chief Operating Officer David Hollister - Chief Investment Officer Conference Call Participants Jason Celino - KeyBanc Capital Markets Matthew Broome - Mizuho Securities Matthew Hedberg - RBC Capital Markets Joe Vruwink - Robert W. Baird Sophie L ...