Bentley(US:BSY)2022-08-08 16:00Revenue 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]