Bentley(US:BSY)2021-11-08 16:00Revenue Growth - The last twelve months recurring revenues increased by $103,362, reaching $786,074, primarily due to growth in annual recurring revenues (ARR) and new accounts [278]. - For the year ended December 31, 2020, subscriptions represented 85% of total revenues, with recurring revenues accounting for 87% of total revenues [258]. - The annualized recurring revenues (ARR) growth rate for 2021 was 26%, compared to 9% for the previous year [275]. - For the twelve months ended September 30, 2021, 86% of the company's revenues were recurring revenues [278]. - Recurring revenues represented 86% of total revenues for the twelve months ended September 30, 2021, highlighting the importance of existing accounts for revenue growth [284]. - The continuous uptake of the E365 subscription offering contributed to 28% of total ARR as of September 30, 2021 [280]. Account Retention - The account retention rate remained stable at 98% for both 2021 and 2020 [275]. - The recurring revenues dollar-based net retention rate was 106% for the last twelve months, down from 110% in the previous year [275]. - The account retention rate for the twelve-month period indicates the company's ability to maintain long-term relationships, reflecting a consistent and high retention rate [282]. - The company’s recurring revenues dollar-based net retention rate is a key indicator of success in growing revenues within existing accounts [284]. Acquisitions and Investments - The acquisition of Seequent Holdings Limited was completed for approximately $910.997 million in cash, net of cash acquired, plus 3,141,342 shares of Class B Common Stock, with $16.285 million of related expenses incurred for the nine months ended September 30, 2021 [304]. - The company completed 12 acquisitions in the nine months ended September 30, 2021, compared to four acquisitions in the same period of 2020 [310]. - The company plans to selectively acquire adjacent software solutions and new technologies to enhance its existing portfolio [310]. - The company continues to invest significantly in research and development to enhance existing offerings and develop new technologies [255]. Financial Performance - Adjusted EBITDA for the three months ended September 30, 2021, was $84,468, compared to $73,655 for the same period in 2020, showing a year-over-year increase [287]. - Adjusted Net Income for the three months ended September 30, 2021, was $56,289, up from $51,424 in the prior year [288]. - Total revenues increased by $45,483, or 22.4%, to $248,480 for the three months ended September 30, 2021, and by $111,439, or 19.1%, to $693,416 for the nine months ended September 30, 2021 [345]. - The company reported a net loss of $50,128 compared to a net income of $5,844 for the same period in 2020, indicating a significant decline in performance [399]. Expenses and Costs - Total operating expenses increased to $234,696 for the three months ended September 30, 2021, from $155,046 for the same period in 2020 [345]. - Research and development expenses for the three months ended September 30, 2021, increased by $7,117, or 14.2%, to $57,334 compared to the same period in 2020 [375]. - General and administrative expenses for the three months ended September 30, 2021, increased by 7.2%, or 5.2% in constant currency, primarily due to an increase in costs of computer equipment and facilities of approximately $2,000 [383]. - Selling and marketing expenses for the three months ended September 30, 2021, increased by 6.1%, or 5.3% in constant currency, mainly due to an increase in promotional costs of approximately $1,000 [380]. Cash and Debt Management - Cash and cash equivalents totaled $155,755 as of September 30, 2021, an increase from $122,006 as of December 31, 2020, reflecting a growth of 27.6% [407]. - The company utilized $536,062 of the net proceeds from the sale of the 2027 Notes to repay outstanding indebtedness under the Credit Facility, indicating a strategic focus on debt management [418]. - The weighted average interest rate under the Credit Facility was 2.33% for the three months ended September 30, 2021, compared to 1.59% for the same period in 2020, showing an increase in borrowing costs [415]. - The effective interest rate for the 2027 Notes is 0.864% [425]. Foreign Exchange Exposure - 43% of revenues and 47% of operating expenses were denominated in various foreign currencies in 2020, indicating significant exposure to foreign exchange rate fluctuations [307]. - For the three months ended September 30, 2021, foreign exchange losses amounted to $2.446 million, while for the nine months, losses were $0.248 million [302]. Taxation - The effective income tax rate for the three months ended September 30, 2021, was (9.3)% on a loss before income taxes of $45,241 million, compared to 62.5% on income before income taxes of $17,130 million in the same period of 2020 [396]. - The effective income tax rate for the nine months ended September 30, 2021, was (12.7)% on income before income taxes of $48,562, significantly lower than the 22.6% effective rate on income before income taxes of $98,181 for the same period in 2020 [397].