BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
|
||||||||
September 30, |
December 31, |
|||||||
2020 |
2019 |
|||||||
Assets |
|
|
|
|||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
137,598 |
|
|
$ |
121,101 |
|
|
Accounts receivable |
|
172,600 |
|
|
211,775 |
|
||
Allowance for doubtful accounts |
|
(6,492 |
) |
|
|
(7,274 |
) |
|
Prepaid income taxes |
|
7,307 |
|
|
4,543 |
|
||
Prepaid and other current assets |
|
27,897 |
|
|
|
23,413 |
|
|
Total current assets |
|
338,910 |
|
|
353,558 |
|
||
Property and equipment, net |
|
29,332 |
|
|
|
29,632 |
|
|
Operating lease right-of-use assets |
|
46,006 |
|
|
— |
|
||
Intangible assets, net |
|
46,560 |
|
|
|
46,313 |
|
|
Goodwill |
|
542,239 |
|
|
480,065 |
|
||
Investments |
|
5,218 |
|
|
|
1,725 |
|
|
Deferred income taxes |
|
44,543 |
|
|
51,068 |
|
||
Other assets |
|
37,689 |
|
|
|
32,238 |
|
|
Total assets |
$ |
1,090,497 |
|
$ |
994,599 |
|
||
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Current liabilities: |
||||||||
Accounts payable |
$ |
15,086 |
|
|
$ |
17,669 |
|
|
Accruals and other current liabilities |
|
212,866 |
|
|
167,517 |
|
||
Deferred revenues |
|
173,578 |
|
|
|
204,991 |
|
|
Operating lease liabilities |
|
15,629 |
|
|
— |
|
||
Income taxes payable |
|
5,100 |
|
|
|
2,236 |
|
|
Total current liabilities |
|
422,259 |
|
|
392,413 |
|
||
Long-term debt |
|
589,583 |
|
|
|
233,750 |
|
|
Long-term operating lease liabilities |
|
32,555 |
|
|
— |
|
||
Deferred revenues |
|
6,322 |
|
|
|
8,154 |
|
|
Deferred income taxes |
|
9,502 |
|
|
8,260 |
|
||
Income taxes payable |
|
7,874 |
|
|
|
8,140 |
|
|
Other liabilities |
|
15,229 |
|
|
9,263 |
|
||
Total liabilities |
|
1,083,324 |
|
|
|
659,980 |
|
|
Stockholders’ equity: |
|
|
|
|||||
Common stock |
|
2,622 |
|
|
2,548 |
|
||
Additional paid-in capital |
|
441,723 |
|
|
|
408,667 |
|
|
Accumulated other comprehensive loss |
|
(29,211 |
) |
|
(23,927 |
) |
||
Accumulated deficit |
|
(407,961 |
) |
|
|
(52,669 |
) |
|
Total stockholders’ equity |
|
7,173 |
|
|
334,619 |
|
||
Total liabilities and stockholders’ equity |
$ |
1,090,497 |
|
|
$ |
994,599 |
|
BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
|
|||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||
September 30, |
September 30, |
||||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||||
Subscriptions | $ |
173,174 |
|
$ |
155,191 |
|
$ |
501,011 |
|
$ |
445,338 |
|
|||||
Perpetual licenses |
|
12,827 |
|
|
|
13,787 |
|
|
|
36,020 |
|
|
|
38,255 |
|
||
Subscriptions and licenses |
|
186,001 |
|
|
168,978 |
|
|
537,031 |
|
|
483,593 |
|
|||||
Services |
|
16,996 |
|
|
|
17,610 |
|
|
|
44,946 |
|
|
|
50,139 |
|
||
Total revenues |
|
202,997 |
|
|
186,588 |
|
|
581,977 |
|
|
533,732 |
|
|||||
Cost of revenues: |
|
|
|
|
|
|
|
||||||||||
Cost of subscriptions and licenses |
|
23,338 |
|
|
17,370 |
|
|
66,466 |
|
|
48,201 |
|
|||||
Cost of services |
|
19,290 |
|
|
|
17,681 |
|
|
|
50,126 |
|
|
|
56,048 |
|
||
Total cost of revenues |
|
42,628 |
|
|
35,051 |
|
|
116,592 |
|
|
104,249 |
|
|||||
Gross profit |
|
160,369 |
|
|
|
151,537 |
|
|
|
465,385 |
|
|
|
429,483 |
|
||
Operating expenses: |
|||||||||||||||||
Research and development |
|
50,217 |
|
|
|
44,756 |
|
|
|
139,570 |
|
|
|
136,617 |
|
||
Selling and marketing |
|
41,824 |
|
|
36,721 |
|
|
107,551 |
|
|
111,889 |
|
|||||
General and administrative |
|
33,006 |
|
|
|
25,108 |
|
|
|
85,275 |
|
|
|
71,415 |
|
||
Amortization of purchased intangibles |
|
3,869 |
|
|
3,550 |
|
|
10,984 |
|
|
10,402 |
|
|||||
Expenses associated with initial public offering |
|
26,130 |
|
|
|
— |
|
|
|
26,130 |
|
|
|
— |
|
||
Total operating expenses |
|
155,046 |
|
|
110,135 |
|
|
369,510 |
|
|
330,323 |
|
|||||
Income from operations |
|
5,323 |
|
|
|
41,402 |
|
|
|
95,875 |
|
|
|
99,160 |
|
||
Interest expense, net |
|
(1,934 |
) |
|
(2,029 |
) |
|
(4,450 |
) |
|
(6,503 |
) |
|||||
Other income (expense), net |
|
13,741 |
|
|
|
(12,306 |
) |
|
|
6,756 |
|
|
|
(14,053 |
) |
||
Income before income taxes |
|
17,130 |
|
|
27,067 |
|
|
98,181 |
|
|
78,604 |
|
|||||
Provision for income taxes |
|
(10,705 |
) |
|
|
(6,640 |
) |
|
|
(22,145 |
) |
|
|
(11,759 |
) |
||
Loss from investment accounted for using the equity method, net of tax |
|
(581 |
) |
|
— |
|
|
(1,447 |
) |
|
— |
|
|||||
Net income |
|
5,844 |
|
|
|
20,427 |
|
|
|
74,589 |
|
|
|
66,845 |
|
||
Less: Net income attributable to participating securities |
|
(4 |
) |
|
(10 |
) |
|
(4 |
) |
|
(10 |
) |
|||||
Net income attributable to Class A and Class B common stockholders |
$ |
5,840 |
|
|
$ |
20,417 |
|
|
$ |
74,585 |
|
|
$ |
66,835 |
|
||
Per share information: |
|||||||||||||||||
Net income per share, basic |
$ |
0.02 |
|
|
$ |
0.07 |
|
|
$ |
0.26 |
|
|
$ |
0.23 |
|
||
Net income per share, diluted | $ |
0.02 |
|
$ |
0.07 |
|
$ |
0.25 |
|
$ |
0.23 |
|
|||||
Weighted average shares outstanding, basic |
|
289,318,391 |
|
|
|
286,075,323 |
|
|
|
287,063,892 |
|
|
|
286,024,263 |
|
||
Weighted average shares outstanding, diluted |
|
299,634,961 |
|
|
289,629,555 |
|
|
297,251,349 |
|
|
294,586,354 |
|
BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
|
|||||||
Nine Months Ended |
|||||||
September 30, |
|||||||
2020 |
2019 |
||||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
74,589 |
|
$ |
66,845 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
25,836 |
|
|
23,334 |
|
|
Provision for accounts receivable allowance |
|
(541 |
) |
|
|
2,109 |
|
Deferred income taxes |
|
7,853 |
|
|
833 |
|
|
Deferred compensation plan activity |
|
2,487 |
|
|
|
2,968 |
|
Stock-based compensation expense |
|
23,617 |
|
|
6,046 |
|
|
Amortization of deferred debt issuance costs |
|
430 |
|
|
|
415 |
|
Change in fair value of derivative |
|
3,365 |
|
|
159 |
|
|
Change in fair value of contingent consideration |
|
(1,340 |
) |
|
|
62 |
|
Foreign currency remeasurement (gain) loss |
|
(9,067 |
) |
|
13,956 |
|
|
Loss from investment accounted for using the equity method, net of tax |
|
1,447 |
|
|
|
— |
|
Changes in assets and liabilities, net of effect from acquisitions: |
|||||||
Accounts receivable |
|
46,661 |
|
|
|
40,847 |
|
Prepaid and other assets |
|
8,907 |
|
|
(6,505 |
) |
|
Accounts payable, accruals and other liabilities |
|
31,486 |
|
|
|
18,545 |
|
Deferred revenues |
|
(35,134 |
) |
|
(39,655 |
) |
|
Income taxes payable |
|
(4,571 |
) |
|
|
(11,710 |
) |
Net cash provided by operating activities |
|
176,025 |
|
|
118,249 |
|
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment and investment in capitalized software |
|
(12,805 |
) |
|
(11,622 |
) |
|
Capitalization of costs to translate software products into foreign languages |
|
(728 |
) |
|
|
(553 |
) |
Acquisitions, net of cash acquired of $2,064 and $980, respectively |
|
(68,920 |
) |
|
(9,662 |
) |
|
Other investing activities |
|
(6,355 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(88,808 |
) |
|
(21,837 |
) |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from credit facilities |
|
432,375 |
|
|
136,750 |
|
|
Payments of credit facilities |
|
(201,125 |
) |
|
|
(147,500 |
) |
Proceeds from term loan |
|
125,000 |
|
|
— |
|
|
Payments of debt issuance costs |
|
(432 |
) |
|
|
— |
|
Payments of financing leases |
|
(141 |
) |
|
— |
|
|
Payments of acquisition debt and other consideration |
|
(2,034 |
) |
|
|
(9,878 |
) |
Payments of dividends |
|
(412,852 |
) |
|
(18,830 |
) |
|
Payments for shares acquired including shares withheld for taxes |
|
(72,476 |
) |
|
|
(18,417 |
) |
Proceeds from Common Stock Purchase Agreement |
|
58,349 |
|
|
4,510 |
|
|
Net proceeds from exercise of common stock options and restricted stock |
|
3,206 |
|
|
|
3,039 |
|
Net cash used in financing activities |
|
(70,130 |
) |
|
(50,326 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(590 |
) |
|
|
(1,272 |
) |
Increase in cash and cash equivalents |
|
16,497 |
|
|
44,814 |
|
|
Cash and cash equivalents, beginning of year |
|
121,101 |
|
|
|
81,183 |
|
Cash and cash equivalents, end of period |
$ |
137,598 |
|
$ |
125,997 |
|
BENTLEY SYSTEMS, INCORPORATED AND SUBSIDIARIES
|
|||||||||||||||
Reconciliation of net income to Adjusted EBITDA: |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
September 30, |
|
September 30, |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net income |
$ |
5,844 |
|
|
$ |
20,427 |
|
|
$ |
74,589 |
|
|
$ |
66,845 |
|
Interest expense, net |
1,934 |
|
|
2,029 |
|
|
4,450 |
|
|
6,503 |
|
||||
Provision for income taxes |
10,705 |
|
|
6,640 |
|
|
22,145 |
|
|
11,759 |
|
||||
Depreciation and amortization |
9,172 |
|
|
7,968 |
|
|
25,836 |
|
|
23,334 |
|
||||
Equity-based compensation |
19,548 |
|
|
2,026 |
|
|
22,760 |
|
|
6,051 |
|
||||
Acquisition expenses |
3,489 |
|
|
1,425 |
|
|
8,498 |
|
|
4,103 |
|
||||
Realignment expenses |
9,943 |
|
|
(49 |
) |
|
10,012 |
|
|
(492 |
) |
||||
Expenses associated with IPO |
26,130 |
|
|
— |
|
|
26,130 |
|
|
— |
|
||||
Other (income) expense, net |
(13,741 |
) |
|
12,306 |
|
|
(6,756 |
) |
|
14,053 |
|
||||
Loss from investment accounted for using the equity method, net of tax |
581 |
|
|
— |
|
|
1,447 |
|
|
— |
|
||||
Adjusted EBITDA |
$ |
73,605 |
|
|
$ |
52,772 |
|
|
$ |
189,111 |
|
|
$ |
132,156 |
|
Reconciliation of net income to Adjusted Net Income: |
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
September 30, |
|
September 30, |
|||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Net income |
$ |
5,844 |
|
|
$ |
20,427 |
|
|
$ |
74,589 |
|
|
|
$ |
66,845 |
|
Non-GAAP adjustments, prior to income taxes: |
|
|
|
|
|
|
|
|||||||||
Amortization of purchased intangibles and developed technologies |
5,236 |
|
|
4,638 |
|
|
14,694 |
|
|
|
13,699 |
|
||||
Equity-based compensation |
19,548 |
|
|
2,026 |
|
|
22,760 |
|
|
|
6,051 |
|
||||
Acquisition expenses |
3,489 |
|
|
1,425 |
|
|
8,498 |
|
|
|
4,103 |
|
||||
Realignment expenses |
9,943 |
|
|
(49 |
) |
|
10,012 |
|
|
|
(492 |
) |
||||
Expenses associated with IPO |
26,130 |
|
|
— |
|
|
26,130 |
|
|
|
— |
|
||||
Other (income) expense, net |
(13,741 |
) |
|
12,306 |
|
|
(6,756 |
) |
|
|
14,053 |
|
||||
Total non-GAAP adjustments, prior to income taxes |
50,605 |
|
|
20,346 |
|
|
75,338 |
|
|
|
37,414 |
|
||||
Income tax effect of non-GAAP adjustments |
(5,644 |
) |
|
(1,473 |
) |
|
(10,785 |
) |
|
|
(4,981 |
) |
||||
Loss from investment accounted for using the equity method, net of tax |
581 |
|
|
— |
|
|
1,447 |
|
|
|
— |
|
||||
Adjusted Net Income |
$ |
51,386 |
|
|
$ |
39,300 |
|
|
$ |
140,589 |
|
|
|
$ |
99,278 |
|
Reconciliation of GAAP Financial Statement Line Items to non-GAAP Adjusted Financial Statement Line Items: |
||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
September 30, |
September 30, |
|||||||||||||||||
2020 |
|
2019 |
2020 |
|
2019 |
|||||||||||||
Cost of subscriptions and licenses |
|
$ |
23,338 |
|
|
$ |
17,370 |
|
|
$ |
66,466 |
|
|
$ |
48,201 |
|
||
Amortization of purchased intangibles and developed technologies |
|
(1,367 |
) |
|
(1,088 |
) |
|
(3,710 |
) |
|
(3,297 |
) |
||||||
Equity-based compensation |
|
|
(861 |
) |
|
|
(27 |
) |
|
|
(908 |
) |
|
|
(60 |
) |
||
Realignment expenses |
|
(50 |
) |
|
— |
|
|
(50 |
) |
|
51 |
|
||||||
Adjusted cost of subscriptions and licenses |
|
$ |
21,060 |
|
|
$ |
16,255 |
|
|
$ |
61,798 |
|
|
$ |
44,895 |
|
||
Cost of services |
|
$ |
19,290 |
|
|
$ |
17,681 |
|
|
$ |
50,126 |
|
|
$ |
56,048 |
|
||
Equity-based compensation |
|
(2,526 |
) |
|
(84 |
) |
|
(2,701 |
) |
|
(363 |
) |
||||||
Acquisition expenses |
|
|
(615 |
) |
|
|
— |
|
|
|
(1,050 |
) |
|
|
— |
|
||
Realignment expenses |
|
(1,548 |
) |
|
12 |
|
|
(1,548 |
) |
|
185 |
|
||||||
Adjusted cost of services |
|
$ |
14,602 |
|
|
$ |
17,609 |
|
|
$ |
44,827 |
|
|
$ |
55,870 |
|
||
|
||||||||||||||||||
Research and development |
|
$ |
50,217 |
|
|
$ |
44,756 |
|
|
$ |
139,570 |
|
|
$ |
136,617 |
|
||
Equity-based compensation |
|
(6,661 |
) |
|
(749 |
) |
|
(7,817 |
) |
|
(2,306 |
) |
||||||
Acquisition expenses |
|
|
(1,969 |
) |
|
|
(1,129 |
) |
|
|
(5,113 |
) |
|
|
(3,083 |
) |
||
Realignment expenses |
|
(841 |
) |
|
37 |
|
|
(910 |
) |
|
79 |
|
||||||
Adjusted research and development |
|
$ |
40,746 |
|
|
$ |
42,915 |
|
|
$ |
125,731 |
|
|
$ |
131,308 |
|
||
Selling and marketing |
|
$ |
41,824 |
|
|
$ |
36,721 |
|
|
$ |
107,551 |
|
|
$ |
111,889 |
|
||
Equity-based compensation |
|
(4,803 |
) |
|
(632 |
) |
|
(5,607 |
) |
|
(1,757 |
) |
||||||
Acquisition expenses |
|
|
(86 |
) |
|
|
(61 |
) |
|
|
(243 |
) |
|
|
(164 |
) |
||
Realignment expenses |
|
(5,183 |
) |
|
— |
|
|
(5,183 |
) |
|
263 |
|
||||||
Adjusted selling and marketing |
|
$ |
31,752 |
|
|
$ |
36,027 |
|
|
$ |
96,518 |
|
|
$ |
110,231 |
|
||
General and administrative |
|
$ |
33,006 |
|
|
$ |
25,108 |
|
|
$ |
85,275 |
|
|
$ |
71,415 |
|
||
Equity-based compensation |
|
(4,696 |
) |
|
(535 |
) |
|
(5,726 |
) |
|
(1,565 |
) |
||||||
Acquisition expenses |
|
|
(532 |
) |
|
|
(199 |
) |
|
|
(1,611 |
) |
|
|
(546 |
) |
||
Realignment expenses |
|
(2,321 |
) |
|
— |
|
|
(2,321 |
) |
|
(86 |
) |
||||||
Adjusted general and administrative |
|
$ |
25,456 |
|
|
$ |
24,374 |
|
|
$ |
75,617 |
|
|
$ |
69,217 |
|
||
Income from operations |
|
$ |
5,323 |
|
|
$ |
41,402 |
|
|
$ |
95,875 |
|
|
$ |
99,160 |
|
||
Amortization of purchased intangibles and developed technologies |
|
5,236 |
|
|
4,638 |
|
|
14,694 |
|
|
13,699 |
|
||||||
Equity-based compensation |
|
|
19,548 |
|
|
|
2,026 |
|
|
|
22,760 |
|
|
|
6,051 |
|
||
Acquisition expenses |
|
3,489 |
|
|
1,425 |
|
|
8,498 |
|
|
4,103 |
|
||||||
Realignment expenses |
|
|
9,943 |
|
|
|
(49 |
) |
|
|
10,012 |
|
|
|
(492 |
) |
||
Expenses associated with IPO |
|
26,130 |
|
|
— |
|
|
26,130 |
|
|
— |
|
||||||
Adjusted income from operations |
|
$ |
69,669 |
|
|
$ |
49,443 |
|
|
$ |
177,968 |
|
|
$ |
122,520 |
|