Slide 1: Bentley Systems' 22Q2 Operating Results
Bentley Systems’ 22Q2 Operating Results Greg Bentley Chief Executive Officer Claire Rutkowski SVP, Engineering Firm Solutions, CIO Champion Nicholas Cumins Chief Operating Officer David Hollister Chief Investment Officer Werner Andre Chief Financial Officer August 2022 | © 2022 Bentley Systems, Inco
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements regarding the future results of operations and financial position, business strategy and plans and objectives for future operations of Bentley Systems, Incorporated (the “Company”, “we”, “us” and words of similar import). All such stat
Slide 3: Agenda
Agenda Tone of Business (Greg, Claire) Operational Perspectives (Nicholas) Corporate Developments (Greg, David) Financial Performance (Werner)
Slide 4: Tone of Business
Tone of Business Greg Bentley, Chief Executive Officer 4 | © 2022 Bentley Systems, Incorporated
Slide 5: Bentley Systems Announces Operating Results for the Second Quarter of 2022
Press Release Investor Contact: Six Months Ended June 30, 2022 Financial Results Ankit Hira Solebury Trout for Bentley Systems ir@bentley.com • Total revenues were $543.8 million, up 21.9% or 26.9% on a constant currency basis, year-over-year; 1-610-458-2777 Media Contact: • Subscriptions revenueswe
Slide 6: Bentley Systems Announces Operating Results for the Second Quarter of 2022
Press Release Investor Contact: Ankit Hira Solebury Trout for Bentley Systems ir@bentley.com 1-610-458-2777 Media Contact: Carey Mann Bentley Systems Announces Operating Results carey.mann@bentley.com 1-610-458-3170 for the Second Quarter of 2022 CEO Greg Bentley said, “I am pleased to report that B
Slide 7: Historical ARR Growth and NRR Growth
Historical ARR Growth and NRR Growth Constant Currency Business Performance 14% 112% 111% NRR 12% 110% ARR ARR4 Growth 109% LTM NRR3 10% 108% 107% 8% 106% 105% 6% 104% 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 7 | © 2022 Bentley Systems, Incorporated
Slide 8: Virtuosity New Business
Virtuosity New Business 21Q1 22Q1 21Q2 21Q3 21Q4 8 | © 2022 Bentley Systems, Incorporated
Slide 9: Virtuosity New Business
Virtuosity New Business 21Q1 22Q1 21Q2 22Q2 21Q3 21Q4 9 | © 2022 Bentley Systems, Incorporated
Slide 10: ARR by Commercial Model
ARR by Commercial Model 22Q1 E365 SMB E365 Prospects 10 | © 2022 Bentley Systems, Incorporated
Slide 11: ARR by Commercial Model
ARR by Commercial Model 22Q2 E365 SMB E365 Prospects 11 | © 2022 Bentley Systems, Incorporated
Slide 12: ARR by Commercial Model
ARR by Commercial Model 22Q2 E365 SMB EPC E365 Prospects 12 | © 2022 Bentley Systems, Incorporated
Slide 13: Application Usage Trends by Infrastructure Sector
Application Usage Trends by Infrastructure Sector Commercial/Facilities Public Works/ Industrial/ Utilities Resources 13 | © 2022 Bentley Systems, Incorporated
Slide 14: New Business / ARR by Infrastructure Sector
New Business / ARR by Infrastructure Sector Commercial/Facilities Industrial Public Works/ Resources Utilities 14 | © 2022 Bentley Systems, Incorporated
Slide 15: New Business / ARR by Infrastructure Sector
New Business / ARR by Infrastructure Sector 22Q1 22Q2 Commercial/Facilities Commercial/Facilities Industrial Public Works/ Industrial/ Public Works/ Resources Utilities Resources Utilities 15 | © 2022 Bentley Systems, Incorporated
Slide 16: Ratio of Current to Ideal Backlog for Civil Engineers
Ratio of Current to Ideal Backlog for Civil Engineers 114 Q1 2022 85 Q4 2021 101 Q3 2021 97 Q2 2021 https://www.construction.com/toolkit/reports/Issue-2-2022-TCQ Ideal Backlog Source: Dodge Construction Network. Q1 2022 Quarterly Report 16 | © 2022 Bentley Systems, Incorporated
Slide 17: Ratio of Current to Ideal Backlog for Civil Engineers
Ratio of Current to Ideal Backlog for Civil Engineers 135 Q2 2022 114 Q1 2022 85 Q4 2021 101 Q3 2021 https://www.construction.com/toolkit/reports/The-Civil-Quarterly-2022-Issue-3 Ideal Backlog Source: Dodge Construction Network. Q2 2022 Quarterly Report 17 | © 2022 Bentley Systems, Incorporated
Slide 18: ACEC Impact Report link
https://programs.acec.org/impact-report-21/
Slide 19: Current Economic Sentiment vs. Last Quarter
Current Economic Sentiment vs. Last Quarter Condition of the Condition of the engineering Condition of your firm’s U.S. Economy and design services industry overall finances +100 +88 +84 +82 +80 +83 +80 +75 +60 +40 +40 +29 +20 +13 0 2021 Q4 2022 Q1 2022 Q2 Source: ACEC Research Institute Engineering
Slide 20: Current Economic Sentiment vs. Last Quarter 12 months from now
Current Economic Sentiment vs. Last Quarter Condition of the Condition of the engineering Condition of your firm’s U.S. Economy and design services industry overall finances +100 +88 +84 +82 +80 +83 +80 +75 +60 +40 +40 +29 +20 +13 0 12 months from now +60 +48 +51 +40 +42 +40 +33 +20 +16 +6 0 -3 -20
Slide 21: Backlog 12 Months from Now
Backlog 12 Months from Now 2022 Q2 (n=507) Source: ACEC Research Institute Engineering Business Sentiment © | 2022 Q2 21 | © 2022 Bentley Systems, Incorporated
Slide 22: Increase in Projects as a Result of IIJA
Increase in Projects as a Result of IIJA Source: ACEC Research Institute Engineering Business Sentiment © | 2022 Q2 22 | © 2022 Bentley Systems, Incorporated
Slide 23: Escalation Clauses
Escalation Clauses Use of Escalation Clauses in Types of Clients with Multi-Year Contracts Escalation Clauses 100% State transportation agency clients Hundreds 90% Municipal and water agency contracts 80% Federal clients: GSA, USACE, VA, 70% Dept. of State, EPA, etc. Private commercial/ 60% resident
Slide 24: Current Industry Sentiment by Sector
Current Industry Sentiment by Sector 100 90 80 70 60 50 40 30 20 10 0 Public Works/Utilities Resources Industrial Commercial/Facilities Source: ACEC Research Institute Engineering Business Sentiment © | 2022 Q2 24 | © 2022 Bentley Systems, Incorporated
Slide 25: ARR by Infrastructure Sector and Discipline
ARR4 by Infrastructure Sector and Discipline Commercial/ Facilities Grids Industrial Roads Geoprofessional and Bridges Resources Rail and Water Transit and Municipal Waste 25 | © 2022 Bentley Systems, Incorporated
Slide 26: ARR by Account Type
ARR4 by Account Type 22Q2 Owner-Operators Contractors 26 | © 2022 Bentley Systems, Incorporated
Slide 27: ENR Top Design Firms: BSY Runrate
ENR Top Design Firms: BSY Runrate $ 300M $ 250M $ 200M $ 150M $ 100M $ 50M $0 2019 2020 2021 2022 BSY Runrate (ARR + License Sales + Services) 27 | © 2022 Bentley Systems, Incorporated
Slide 28: © 2022 Bentley Systems, Incorporated
28 | © 2022 Bentley Systems, Incorporated
Slide 29: Claire Rutkowski
Claire Rutkowski will be expanding our Industry Solutions group, which until now has been dedicated only to owner-operators in our end markets, to lead our offerings and advocacy for engineering firms globally. Claire Rutkowski SVP, Engineering Firm Solutions, CIO Champion 29 | © 2022 Bentley System
Slide 30: Operational Perspectives
Operational Perspectives Nicholas Cumins, Chief Operating Officer 30 | © 2022 Bentley Systems, Incorporated
Slide 31: Notable Developments in New Business Across Geographies
Notable Developments in New Business Across Geographies 31 | © 2022 Bentley Systems, Incorporated
Slide 32: Diablo Dam Digital Twin Modeling
The ability to analyze thousands of images via AI and machine learning, and drape those cracks on the model via Bentley products, is really a game changer for inspecting assets—whether they be bridges or dams. Carlos Femmer Associate Vice President Data Acquisition Cross Sector Director HDR Diablo D
Slide 33: Notable Developments in New Business Across Products
Notable Developments in New Business Across Products APPLICATIONS ENGINEERING APPLICATIONS GEOPROFESSIONAL APPLICATIONS - MicroStation - AutoPIPE - AGS Workbench - MX Deposit - OpenBridge - ADINA - GeoStudio - Oasis montaj - OpenBuildings - CUBE - Imago - OpenGround - OpenFlows - EMME - Leapfrog - P
Slide 34: Texas DOT Implements a Digital Delivery Initiative
Press Release Press Contact: Christine Byrne +1 203 805 0432 Christine.Byrne@bentley.com Follow us on Twitter: @BentleySystems Managing More than 80,000 Miles of Roads, Texas DOT Implements a Digital Delivery Initiative for New Bridge Projects Innovative Technology Advances High-quality Bridge Desig
Slide 35: Texas Department of Transportation
I would like to express my appreciation to the teams that are carrying forward the vision for 3D Digital Twin design at TxDOT... We look forward to continuing our work with Bentley on bringing Digital Delivery and a Digital Twin to the State of Texas. Jacob Tambunga Director of Plan Development Texa
Slide 36: Portfolio Development (M&A) Digital Integrators
BSY Investments INVESTING IN BUSINESSES, ENTREPRENEURS AND AN ECOSYSTEM FOR INFRASTRUCTURE DIGITAL TWIN ADOPTION Portfolio Development (M&A) www.bentleyitwinventures.com Digital Integrators www.cohesivegroup.com www.bentleyaccelerationinitiatives.com www.digitalconstructionworks.com 36 | © 2022 Bent
Slide 37: Corporate Developments
Corporate Developments David Hollister, Chief Investment Officer 37 | © 2022 Bentley Systems, Incorporated
Slide 38: Teralytics Acquires Streetlytics from Bentley Systems
Teralytics Boosts North American Presence and Global Reach through the Acquisition of Streetlytics from Bentley Systems ZŰRICH – July 26, 2022 – Teralytics, the global platform for human mobility analysis, today announced it has acquired the Streetlytics mobility data business from Bentley Systems (
Slide 39: BSY Investments: Pre-Seed to Maturity
BSY Investments Pre-Seed Seed Early Growth Maturity i T w i n P l a t f o r m , P a r t n e r P r o g r a m s , D e v e l o p e r To o l s a n d S u p p o r t iTwin Ventures Ecosystem Sponsorship Program iTwin Ventures Portfolio Investments BSY Investments M&A and Acceleration 39 | © 2022 Bentley Sy
Slide 40: BSY Investments: Pre-Seed to Maturity
BSY Investments Pre-Seed Seed Early Growth Maturity i T w i n P l a t f o r m , P a r t n e r P r o g r a m s , D e v e l o p e r To o l s a n d S u p p o r t iTwin Ventures Ecosystem Sponsorship Program iTwin Ventures Portfolio Investments BSY Investments M&A and Acceleration 40 | © 2022 Bentley Sy
Slide 41: 22Q2 Financial Performance
22Q2 Financial Performance Werner Andre, Chief Financial Officer 41 | © 2022 Bentley Systems, Incorporated
Slide 42: Revenue Performance
Revenue Performance Second Quarter First Half $ in millions $ in millions CC constant currency CC constant currency $543.8 +21.9% (CC +26.9%) 48.6 -2.5% (CC +0.2%) $445.9 21.8 +1.1% (CC +7.4%) 49.9 21.5 $268.3 +19.8% (CC +26.2%) 24.5 -5.9% (CC -2.3%) $223.9 11.5 +1.4% (CC +8.8%) 26.1 473.4 +26.4% (C
Slide 43: Recurring Revenue Performance
ARR4: 14% Y-o-Y constant currency growth Recurring Revenue Performance $971.9 million at 06/30/2022 spot LTM Recurring Revenues1 LTM Recurring Revenue Retention Annualized Recurring Revenue (ARR)4 $ in millions Constant Currency growth v. prior year 107% 108% 107% 109% 106% 109% 27% 26% 26% $930.8 +
Slide 44: Profitability Performance
Profitability Performance GAAP Operating Income Adjusted EBITDA5 $ in millions $ in millions 33.9% Adj. EBITDA Margin6 34.2% Adj. EBITDA $112.3 Margin6 $184.1 +26.4% +20.9% $88.9 $152.3 32.2% Adj. EBITDA Margin6 31.0% Adj. EBITDA $55.7 Margin6 $86.5 +67.8% $69.3 +24.8% $33.2 21Q2 22Q2 21Q2 YTD 22Q2
Slide 45: Liquidity and Capital Structure
Liquidity and Capital Structure GAAP Operating Cash Flows 06/30/2022 Credit Metrics Second Quarter First Half Last Twelve Months $ in millions $ in millions 307.7 Cash $ 93.4 271.2 +13.5% Senior Debt $ 591.5 Net Senior Debt1 $ 498.1 168.7 Net Debt Senior Leverage2 1.4x 149.0 +13.2% Available Revolve
Slide 46: 22Q2: "Straightforward…"
22Q2: “Straightforward…” 46 | © 2022 Bentley Systems, Incorporated
Slide 47: Q&A
Q&A
Slide 48: Appendix
Appendix 48 | © 2022 Bentley Systems, Incorporated
Slide 49: KPI and Non-GAAP Definitions and Reconciliations
KPI and Non-GAAP Definitions and Reconciliations 1. Recurring revenues. Last twelve-months recurring revenues is calculated as recurring revenues recognized over the preceding twelve-month period. We define recurring revenues as subscriptions revenues that recur monthly, quarterly, or annually with
Slide 50: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA $ in thousands Three Months Ended Six Months Ended June 30 June 30 2022 2021 2022 2021 Net Income $ 55,673 $ 45,627 $ 112,061 $ 102,633 Interest expense, net 7,622 2,453 14,664 4,772 Benefit for income taxes (4,674) (20,473) (1,443) (10,115) Depreciation and