Bentley Systems, Incorporated ("Bentley Systems" or the "Company"), the infrastructure engineering software company, announced operating results for its first quarter ended March 31, 2022.
First Quarter 2022 Financial Results
- Total revenueswere $275.5 million, up 24.1% or 27.7% on a constant currency basis, year-over-year;
- Subscriptions revenueswere $241.2 million, up 28.2% or 32.0% on a constant currency basis, year-over-year;
- Last twelve-month recurring revenueswere $885.9 million, up 23.6% year-over-year;
- Last twelve-month recurring revenues dollar-based net retention ratewas 108%, compared to 107% for the same period last year;
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- Last twelve-month account retention ratewas 98%, consistent with the same period last year;
- Annualized Recurring Revenue ("ARR")was $962.6 million as of March 31, 2022, representing a constant currency ARR growth rate of 27% from March 31, 2021;
- GAAP operating incomewas $56.6 million, compared to $55.6 million for the same period last year;
- GAAP net incomewas $56.4 million, compared to $57.0 million for the same period last year. GAAP net income per diluted share was $0.18, compared to $0.18 for the same period last year. GAAP net income margin was 20.5%, compared to 25.7% for the same period last year;
- Adjusted Net Incomewas $79.6 million, compared to $64.1 million for the same period last year. Adjusted Net Income per diluted share was $0.24 compared to $0.20 for the same period last year;
- Adjusted EBITDAwas $97.6 million, compared to $83.0 million for the same period last year. Adjusted EBITDA margin was 35.4%, compared to 37.4% for the same period last year; and
- Cash flow from operationswas $101.7 million, compared to $132.8 million for the same period last year.
Definitions of the non-GAAP financial measures used in this press release and reconciliations of such measures to the most comparable GAAP financial measures are included below under the heading "Use and Reconciliation of Non-GAAP Financial Measures."
CEO Greg Bentley said, "Against this quarter’s backdrop of compounding global concerns, I am pleased that we are reporting overall resilience, starting with strong operating results, consistent with our established financial outlook for 2022. Our 22Q1 results absorbed consequences directly related to Russia, including mandatory sanctions, our discretionary new business suspension there, and especially reductions in Russian ARR to reflect an estimation of recurrence probability. But we also absorbed a comparable amount of ARR attrition within China that I believe stems largely from indirectly related ‘counter-globalism.’ Net of these disruptions, we still achieved constant currency ARR growth, from a year ago, of 12% in business performance, plus 15% from platform acquisitions."
Mr. Bentley continued, "To proactively enhance our business resilience with respect to counter-globalism, BSY Investments announced our first joint venture in China to ‘glocalize’ our platform within software and cloud service offerings being developed there to meet the Chinese government’s provenance requirements for critical infrastructure applications. Also on the investment front, our leadership in core structural and geotechnical engineering disciplines was augmented by our acquisition of ADINA to add advanced non-linear analyses across our simulation portfolio, to help in assessing and improving infrastructure asset resilience against increasingly prevalent environmental extremes."
"And with respect to potential macroeconomic downturns, I consider that 22Q1’s impressive net momentum in our business corresponds with generally having become more resilient, even since going public in 2020. Notably, as we have extended our global leadership position in infrastructure engineering software and digital twins for mobility, our flourishing platform acquisitions for environmental opportunities (Seequent) and grid opportunities (Power Line Systems) have considerably reduced the significance of our comparatively minor exposure, within the commercial and industrial infrastructure sectors, to cyclically vulnerable CAPEX spending," Mr. Bentley concluded.
First Quarter 2022 Financial Developments
On January 31, 2022, we completed the acquisition of Power Line Systems, a leader in software for the design of overhead electric power transmission lines and their structures, for $696.0 million in cash, net of cash acquired. We used available cash and borrowings under our bank credit facility to fund the transaction.
Operating Results Call Details
Bentley Systems will host a live Zoom video webinar on May 10, 2022 at 8:15 a.m. Eastern time to discuss operating results for its first quarter ended March 31, 2022.
Those wishing to participate should access the live Zoom video webinar of the event through a direct registration link at https://zoom.us/webinar/register/WN_4aR1BzzRQJCALyGU052TrQ. Alternatively, the event can be accessed from the Events & Presentations page on Bentley Systems’ Investor Relations website at https://investors.bentley.com. In addition, a replay and transcript will be available after the conclusion of the live event on Bentley Systems’ Investor Relations website for one year.
