© 2023 Bentley Systems, Incorporated 27 | of Transportation (MnDOT) Image courtesy of WSB Image courtesy of Ferrovial Construction and Alamo Nex Construction Image courtesy of NYSDOT IH35 Nex Central Section San Antonio, Texas, United States East 138th Street over the Major Deegan Expressway New York City, New York, United States NYSDOT used Bentley applications to create a digital twin as the primary contract document that helped identify and resolve costly issues prior to construction. © 2023 Bentley Syst ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Unaudited Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) This section presents Bentley Systems' unaudited consolidated financial statements for the quarter ended March 31, 2023, including balance sheets, income statements, and cash flows, showing revenue growth, decreased net income, and increased operating cash flow [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets increased slightly to **$3.19 billion**, total liabilities decreased to **$2.57 billion**, and total stockholders' equity grew to **$614.2 million** Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$3,188,022** | **$3,165,005** | | Cash and cash equivalents | $93,567 | $71,684 | | Goodwill | $2,247,797 | $2,237,184 | | **Total Liabilities** | **$2,573,832** | **$2,591,551** | | Long-term debt | $1,668,781 | $1,775,696 | | **Total Stockholders' Equity** | **$614,190** | **$573,454** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2023, total revenues increased **14.1%** to **$314.4 million**, but higher operating expenses and interest led to a **19.3%** decrease in net income to **$45.5 million** Q1 2023 vs. Q1 2022 Statement of Operations (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$314,411** | **$275,517** | **+14.1%** | | Subscriptions | $277,845 | $241,233 | +15.2% | | Gross Profit | $247,227 | $219,732 | +12.5% | | Income from Operations | $65,785 | $56,592 | +16.2% | | **Net Income** | **$45,490** | **$56,388** | **-19.3%** | | Net Income per Share, diluted | $0.14 | $0.18 | -22.2% | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$176.2 million** in Q1 2023, while investing activities decreased sharply due to lower acquisition spending, and financing activities shifted to net cash used Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $176,223 | $101,731 | | Net cash used in investing activities | ($20,761) | ($700,575) | | Net cash (used in) provided by financing activities | ($134,241) | $399,931 | | **Increase (decrease) in cash** | **$21,883** | **($199,720)** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes disclose revenue disaggregation by type and region, acquisition details, debt structure, and stock-based compensation, providing context for the financial statements Revenue by Type (in thousands) | Revenue Type | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Enterprise subscriptions | $103,904 | $81,827 | | SELECT subscriptions | $63,343 | $66,598 | | Term license subscriptions | $110,598 | $92,808 | | **Total Subscriptions** | **$277,845** | **$241,233** | | Perpetual licenses | $9,547 | $10,205 | | Services | $27,019 | $24,079 | Revenue by Geographic Region (in thousands) | Region | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Americas | $168,345 | $154,260 | | EMEA | $92,832 | $77,480 | | APAC | $53,234 | $43,777 | | **Total Revenues** | **$314,411** | **$275,517** | - The company completed one acquisition in Q1 2023 for net cash paid of **$10.3 million**, compared to one acquisition in Q1 2022 for **$696.0 million** (Power Line Systems)[63](index=63&type=chunk)[64](index=64&type=chunk) - Total stock-based compensation expense was **$19.5 million** in Q1 2023, up from **$15.1 million** in Q1 2022[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results, highlighting a **14.1%** revenue increase driven by subscription growth, detailing changes in costs and expenses, and confirming strong liquidity and positive business metrics [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Total revenues grew **14.1%** (**17.1%** constant currency) driven by subscription and services growth across all regions, while operating expenses increased due to headcount-related costs, partially offset by lower acquisition expenses Revenue Growth by Type (YoY) | Revenue Type | Growth (%) | Constant Currency Growth (%) | | :--- | :--- | :--- | | Subscriptions | 15.2% | 18.0% | | Perpetual licenses | (6.4%) | (3.1%) | | Services | 12.2% | 17.3% | | **Total Revenues** | **14.1%** | **17.1%** | Revenue Growth by Region (YoY) | Region | Growth (%) | Constant Currency Growth (%) | | :--- | :--- | :--- | | Americas | 9.1% | 9.5% | | EMEA | 19.8% | 26.3% | | APAC | 21.6% | 27.8% | - General and administrative expenses decreased by **8.5%**, primarily due to lower acquisition expenses of approximately **$5.4 million** compared to the prior year period[133](index=133&type=chunk)[195](index=195&type=chunk) - Interest expense, net, increased **64.4%** to **$11.1 million**, primarily due to a higher weighted average interest rate on borrowings[134](index=134&type=chunk)[196](index=196&type=chunk) [Key Business Metrics](index=39&type=section&id=Key%20Business%20Metrics) Key business metrics show strong performance with Annualized Recurring Revenue (ARR) reaching **$1.07 billion** (**13%** constant currency growth) and the recurring revenues dollar-based net retention rate improving to **110%** Key Business Metrics Comparison | Metric | As of March 31, 2023 | As of March 31, 2022 | | :--- | :--- | :--- | | ARR | $1,070,955 thousand | $962,550 thousand | | Last twelve-months recurring revenues | $1,014,113 thousand | $885,882 thousand | | Twelve-months ended constant currency ARR growth rate | 13% | 27% | | Account retention rate | 98% | 98% | | Recurring revenues dollar-based net retention rate | 110% | 108% | - Recurring revenues represented **89%** of total revenues for the twelve months ended March 31, 2023, up from **87%** for the same period in 2022[218](index=218&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$93.6 million** in cash and **$610.2 million** available credit, supported by a **73%** increase in operating cash flow, sufficient for future needs Cash Flow Activity Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash Provided By Operating Activities | $176,223 | $101,731 | | Net Cash Used In Investing Activities | ($20,761) | ($700,575) | | Net Cash (Used In) Provided By Financing Activities | ($134,241) | $399,931 | - As of March 31, 2023, the company had **$1.675 billion** in total debt, down from **$1.781 billion** at year-end 2022[249](index=249&type=chunk) - The company has a stock repurchase program authorizing up to **$200 million** in repurchases of Class B Common Stock and/or convertible senior notes, with **$169.8 million** remaining available as of March 31, 2023[103](index=103&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its market risk exposure from what was disclosed in its 2022 Annual Report on Form 10-K - There have been no material changes in market risk exposure as described in the 2022 Annual Report on Form 10‑K[241](index=241&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, 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[243](index=243&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[252](index=252&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently involved in any material legal proceedings and does not expect ordinary course claims to materially affect its financial condition - The company does not believe it has any material litigation pending and does not expect the outcome of ordinary course legal actions to have a material adverse effect on its financial position, results of operations, or cash flows[254](index=254&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - No material changes have occurred from the risk factors previously disclosed in the 2022 Annual Report on Form 10‑K[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company issued **1,052,738** shares of Class B Common Stock related to Deferred Compensation Plan distributions, deemed exempt from registration under Rule 701 - From January 1, 2023, to March 31, 2023, the company issued **1,052,738** shares of Class B Common Stock related to distributions from its Deferred Compensation Plan (DCP)[264](index=264&type=chunk) - The sales of these securities were considered exempt from registration under the Securities Act, relying on Rule 701 as transactions pursuant to employee benefit plans[265](index=265&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes standard exhibits such as CEO/CFO certifications (Exhibits 31.1, 31.2, 32) and Inline XBRL data files (Exhibits 101 and 104)[268](index=268&type=chunk)

Bentley Systems, Incorporated (NASDAQ:BSY) Q4 2022 Earnings Conference Call February 28, 2023 8:15 AM ET Company Participants Eric Boyer – Investor Relations Officer Greg Bentley – Chief Executive Officer Keith Bentley – Chief Technology Officer David Hollister – Chief Investment Officer Werner Andre – Chief Financial Officer Nicholas Cumins – Chief Operating Officer Conference Call Participants Joe Vruwink – Baird Matt Hedberg – RBC Kristen Owen – Oppenheimer Andrew DeGasperi – Berenberg Matthew Broome – ...

Leadership Transition - Keith Bentley, the founder, will retire as Chief Technology Officer in April 2023 and become a Technology Advisor[1, 4, 206] - Julien Moutte will succeed Keith Bentley as Chief Technology Officer, joining from SAP in January 2021[2, 5, 207] - David Hollister, the former CFO, will retire as Chief Investment Officer on March 31, 2023, succeeded as CFO by Werner Andre at the beginning of 2022[1, 4, 188] - Brock Ballard has been promoted to Chief Revenue Officer, succeeding Gus Bergsma, and Eric Boyer has joined as Investor Relations Officer[17] Financial Performance and Outlook - The company's 2022 operating results met expectations despite challenges in Russia and China[29] - The company anticipates full year 2023 total revenues between $1.205 billion and $1.235 billion, representing a 9.5% to 12.5% increase[253] - The company projects ARR growth of 11.5% to 13.5% in constant currency for 2023[253] - The company expects an Adjusted Operating Income with Stock-Based Compensation (SBC) Margin of approximately 26% for 2023[177, 253] Business Growth and Strategy - The company's ARR growth rate was favorably impacted by the ARR onboarding from the platform acquisition of Power Line Systems by 2.5% for the year ended December 31, 2022[27] - The company's ARR growth rate was favorably impacted by the ARR onboarding from the platform acquisition of Seequent by 13% for the year ended December 31, 2021[27] - E365, E365 Prospects, and SMB accounted for 47% of overall New Business[112]

Often during the project delivery lifecycle, key data are constantly changing, with inputs received from multiple sources, resulting in the need for a single source of information that is used to collect, manage, and disseminate information for the whole project team. Our software assures that the rapidly-changing data are managed in a common data environment ("CDE") such that only the correct milestone versions can be shared and referenced across the project, while embedded digital twin workflows, powered ...

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]

Financial Performance Highlights - Total revenues reached $275.5 million, a 24.1% increase year-over-year, or 27.7% on a constant currency basis[7] - Subscription revenues amounted to $241.2 million, reflecting a 28.2% increase, or 32.0% on a constant currency basis, year-over-year[7] - Last twelve-month recurring revenues totaled $885.9 million, up 23.6% year-over-year[7] - Adjusted EBITDA was $97.6 million, compared to $83.0 million in the same period last year[7] The Adjusted EBITDA margin was 35.4%, compared to 37.4% for the same period last year[7] - Cash flow from operations was $101.7 million, compared to $132.8 million for the same period last year[7] Key Business Metrics - Annualized Recurring Revenue (ARR) reached $962.6 million as of March 31, 2022, representing a constant currency ARR growth rate of 27% from March 31, 2021[7] - The last twelve-month recurring revenues dollar-based net retention rate was 108%, compared to 107% for the same period last year[7] - The last twelve-month account retention rate was 98%, consistent with the same period last year[7] Strategic Initiatives and Acquisitions - Bentley Systems completed the acquisition of Power Line Systems for $696.0 million in cash on January 31, 2022[9] - BSY Investments announced a joint venture in China to develop software and cloud service offerings tailored to Chinese government requirements[8, 76] - Bentley Systems acquired ADINA R & D Inc to enhance nonlinear simulation capabilities for infrastructure engineering[83]