Bentley Systems, Incorporated(“Bentley Systems” or the “Company”), the infrastructure engineering software company, announced operating results for its fourth quarter and full year ended December 31, 2021, and its financial outlook for 2022.
Fourth Quarter 2021 Financial Results:
- Total revenueswere $267.7 million, up 21.9% year-over-year;
- Subscriptions revenueswere $223.1 million, up 25.2% year-over-year;
- Last twelve-month recurring revenueswere $834.2 million, up 19.7% year-over-year;
- Last twelve-month recurring revenues dollar-based net retention ratewas 109%, compared to 107% for the same period last year;
- Last twelve-month account retention ratewas 98%, consistent with the same period last year;
- Annualized Recurring Revenue (“ARR”)was $921.2 million as of December 31, 2021, representing a constant currency ARR growth rate of 26% from December 31, 2020;
- GAAP operating income was $43.3 million, compared to $54.3 million for the same period last year;
- GAAP net incomewas $38.6 million, compared to $51.9 million for the same period last year. GAAP net income per diluted share was $0.12, compared to $0.17 for the same period last year;
- Adjusted Net Incomewas $72.0 million, compared to $52.3 million for the same period last year. Adjusted Net Income per diluted share was $0.23 compared to $0.17 for the same period last year;
- Adjusted EBITDAwas $88.2 million, compared to $77.4 million for the same period last year. Adjusted EBITDA margin was 32.9%, compared to 35.2% for the same period last year; and
- Cash flow from operationswas $80.6 million, compared to $82.3 million for the same period last year.
Full Year 2021 Financial Results:
- Total revenueswere $965.0 million, up 20.4% year-over-year;
- Subscriptions revenueswere $812.8 million, up 19.7% year-over-year;
- GAAP operating incomewas $94.6 million, compared to $150.2 million for the same period last year. GAAP operating income for 2021 includes a one-time compensation charge of $90.7 million resulting from a modification of our deferred compensation plan;
- GAAP net incomewas $93.2 million, compared to $126.5 million for the same period last year. GAAP net income per diluted share was $0.30, compared to $0.42 for the same period last year. GAAP net income for 2021 includes a one-time compensation charge of $83.4 million, net of tax, resulting from a modification of our deferred compensation plan;
- Adjusted Net Incomewas $266.9 million, compared to $192.8 million for the same period last year. Adjusted Net Income per diluted share was $0.85 compared to $0.64 for the same period last year;
- Adjusted EBITDAwas $324.9 million, compared to $266.4 million for the same period last year. Adjusted EBITDA margin was 33.7%, compared to 33.2% for the same period last year; and
- Cash flow from operationswas $288.0 million, compared to $258.3 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, “Our fourth quarter of 2021 capped a year of consistently and increasingly improving tone of business and operating metrics, and we enter 2022 on an unprecedented high note in terms of business confidence. From a long-term standpoint, BSY management takes pride in having responsibly completed our first full year as a public company. Our quarterly reporting tends to focus on milestones in operations and acquisitions, but I think our notable headway in per-share earnings measures is representative of the conscientious stewardship to which we hold ourselves accountable. Our many established competitive advantages as the infrastructure engineering software company make us confident in predictably achieving advancements in both growth and financial performance, including from generationally compelling opportunities for digital twin cloud services to advance infrastructure resilience.”
Mr. Bentley continued, “Our 2022 outlook, together with reliably strong 2020 and 2021 results, demonstrates our resolute commitment to deliberately expand our adjusted operating margins (normalized for nonrecurring pandemic-related savings) annually. At the same time, responding to strong market demand, we continue to expand resource initiatives for our user organizations’ success and for further SMB penetration, sustaining our compounded gains in ARR growth from pre-pandemic (and pre-IPO) levels. While we acknowledge that geopolitical complications are adding uncertainties, BSY is now more globally diversified than ever, especially by virtue of our complementary and high-performing Seequent acquisition. In January, 2022 we closed the Power Line Systems acquisition to complete our market-leading grid integration portfolio for energy transmission and distribution— signifying our proactivity in advancing infrastructure engineering, going digital, to enable our world’s sustainable development goals.”
Recent 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 approximately $700 million in cash, net of cash acquired, and subject to customary adjustments including for working capital. We used available cash and borrowings under our bank credit facility to fund the transaction.
2022 Financial Outlook
The Company is sharing the following outlook for the year ending December 31, 2022.
- Total revenuesin the range of $1,110 million to $1,140 million, representing growth of 15.0% to 18.1% (16.9% to 20.1% in constant currency);
- Constant currency ARR growth rateof 14% to 16% (1);
- Adjusted EBITDAin the range of $370 million to $380 million, representing growth of 13.9% to 16.9% (16.3% to 19.5% in constant currency), and Adjusted EBITDA margin of approximately 33%; and
- Effective tax rateof less than 15%.
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(1) |
The outlook for constant currency ARR growth rate includes growth of 2.5% from the initial inclusion of Power Line Systems, and growth of 11.5% to 13.5% from business performance. |
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The Company does not provide quarterly guidance, but to the extent expectations materially change we will update our full-year financial outlook when announcing subsequent quarterly operating results.
The 2022 outlook information provided above includes Constant currency ARR growth rate, Adjusted EBITDA, and Adjusted EBITDA margin guidance, which are non-GAAP financial measures management uses in measuring performance. The Company is unable to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including stock-based compensation charges, depreciation and amortization of capitalized software costs and of acquired intangible assets, realignment expenses, and other items, which would be included in GAAP results. The impact of such items and unanticipated events could be potentially significant.
The 2022 outlook is forward-looking, subject to significant business, economic, regulatory, and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and those variations may be material. As such, our results may not fall within the ranges contained in this outlook. The Company uses these forward-looking measures to evaluate its ongoing operations and for internal planning and forecasting purposes.
Operating Results Call Details
Bentley Systems will host a live Zoom video webinar on March 1, 2022 at 8:15 a.m. EST to discuss operating results for its fourth quarter and full year ended December 31, 2021, and 2022 financial outlook.
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_rP8Uv_28Q3GEOkkAFHwBGg. Alternatively, the event can be accessed from the Events & Presentations page on Bentley Systems’ Investor Relations website. 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.
