Bentley Systems, Incorporated · NASDAQ:BSY

Bentley Systems — Q4 2022 / FY2022 Earnings Presentation

73 slides from Bentley Systems's earnings presentation, Feb 28, 2023

Slide 1: Q4 & FY 2022 Operating Results
Q4 & FY 2022 Operating Results Greg Bentley Chief Executive Officer Nicholas Cumins Chief Operating Officer Keith Bentley Chief Technology Officer David Hollister Chief Investment Officer Werner Andre Chief Financial Officer February 28, 2023 | © 2023 Bentley Systems, Incorporated 1 © 2023 Bentley S
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: Q4 & FY 2022 Operating Results
Q4 & FY 2022 Operating Results Greg Bentley Chief Executive Officer Nicholas Cumins Chief Operating Officer Keith Bentley Chief Technology Officer David Hollister Chief Investment Officer Werner Andre Chief Financial Officer February 28, 2023 | © 2023 Bentley Systems, Incorporated 3 © 2023 Bentley S
Slide 4: Promotion of Brock Ballard to Chief Revenue Officer and Eric Boyer as IR Officer
Press Release Press Contact: Christine Byrne +1 203 805 0432 Christine.Byrne@bentley.com Bentley Systems Announces Promotion of Brock Ballard to Chief Revenue Officer and Eric Boyer Joining as Investor Relations Officer EXTON, Pa. – Jan. 4, 2023 – Bentley Systems, Incorporated (Nasdaq: BSY), the inf
Slide 5: Agenda
Tone of Business - Greg Operational Perspectives - Nicholas Corporate Developments - Greg Agenda Perspective on Digital Twins - Keith Corporate Developments - David Financial Performance - Werner 5 © 2023 Bentley Systems, Incorporated |
Slide 6: Retirement of Founder Keith Bentley and Promotion of Julien Moutte to CTO
Press Release Investor Contact: Eric Boyer Investor Relations Officer ir@bentley.com Bentley Systems Announces Retirement of Founder Keith Bentley and Promotion of Julien Moutte to Chief Technology Officer Former CFO David Hollister Retiring as Chief Investment Officer EXTON, Pa. – Feb 28, 2023 – Be
Slide 7: Retirement of Founder Keith Bentley and Promotion of Julien Moutte to CTO
Press Release Investor Contact: Eric Boyer Investor Relations Officer ir@bentley.com Bentley Systems Announces Retirement of Founder Keith Bentley and Promotion of Julien Moutte to Chief Technology Officer Former CFO David Hollister Retiring as Chief Investment Officer EXTON, Pa. – Feb 28, 2023 – Be
Slide 8: Tone of Business
Tone of Business Greg Bentley, Chief Executive Officer 8 © 2023 Bentley Systems, Incorporated |
Slide 9: Historical ARR Growth
Historical ARR Growth Constant Currency Business Performance 14% 12% ARR 10% 8% 6% 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 Note: Annualized Recurring Revenue (ARR) 9 © 2023 Bentley Systems, Incorporated |
Slide 10: Historical ARR Growth
Historical ARR Growth Constant Currency Business Performance 14% 12% ARR 10% 8% 6% 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 Our ARR growth rate is the growth rate of our ARR, measured on a constant currency basis. Our ARR growth rate was favorably impacted by the AR
Slide 11: Q4 and 2022 operating results met expectations
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook The fourth quarter and thus full-year 2022 operating results quite successfully met the expectations we maintained throughout the year, notwithstanding the loss of Russia and pandemic- compounded headwinds in C
Slide 12: Historical ARR Growth
Historical ARR Growth Excluding Russia exit and 22Q1’s coincident Constant Currency Business Performance China attrition 14% 12% ARR 10% 8% 6% 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 12 © 2023 Bentley Systems, Incorporated |
Slide 13: Tone of Business (ARR by Infrastructure Sector)
Tone of Business (ARR by Infrastructure Sector) Commercial/Facilities Industrial Public Works/ Resources Utilities Note: Chart segment sizing corresponds to underlying % of 22Q3 ARR 13 © 2023 Bentley Systems, Incorporated |
Slide 14: Tone of Business (ARR by Infrastructure Sector)
Tone of Business (ARR by Infrastructure Sector) Commercial/Facilities Industrial Public Works/ Resources Utilities Note: Chart segment sizing corresponds to underlying % of 22Q4 ARR 14 © 2023 Bentley Systems, Incorporated |
Slide 15: Ratio of Current to Ideal Backlog for Civil Engineers
Ratio of Current to Ideal Backlog for Civil Engineers 150 Q3 2022 135 Q2 2022 114 Q1 2022 85 https://www.construction.com/toolkit/rep orts/The-Civil-Quarterly-Issue-4-2022 Q4 2021 101 Q3 2021 Ideal Backlog Source: Dodge Construction Network. Q3 2022 Quarterly Report 15 © 2023 Bentley Systems, Incorp
Slide 16: Ratio of Current to Ideal Backlog for Civil Engineers
Ratio of Current to Ideal Backlog for Civil Engineers 102 Q4 2022 150 Q3 2022 135 Q2 2022 114 https://www.construction.com/toolkit/ TheCivQuarterlyIssue12023 Q1 2022 85 Q4 2021 Ideal Backlog Source: Dodge Construction Network. Q4 2022 Quarterly Report 16 © 2023 Bentley Systems, Incorporated |
Slide 17: Change in Civil Engineers' Backlog Over the Last 6 Months
Change in Civil Engineers’ Backlog Over the Last 6 Months 26% 18% 21% 38% 39% 50% 16% 24% 26% https://www.construction.com/toolkit/ Q2 2022 Q3 2022 Q4 2022 TheCivQuarterlyIssue12023 Increased Increased Stayed About Significantly Somewhat the Same Source: Dodge Construction Network. Q4 2022 Quarterly
Slide 18: Current Backlog vs. Previous Quarters
Current Backlog vs. Previous Quarters 12 12 11 10 2022 Q1 2022 Q2 2022 Q3 2022 Q4 (n=534) (n=542) (n=563) (n=592) Note: Source: ACEC Research Institute Engineering Business Sentiment © | 2022 Q4 18 © 2023 Bentley Systems, Incorporated |
Slide 19: Backlog 12 Months from Now
Backlog 12 Months from Now Decrease a lot Decrease a little Stay about Increase a little Increase a lot the same 2022 Q4 (n=585) Note: Source: ACEC Research Institute Engineering Business Sentiment © | 2022 Q4 19 © 2023 Bentley Systems, Incorporated |
Slide 20: Favorable visibility into comparable growth during 2023
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook The stage is set for relatively favorable visibility into comparable growth during 2023, as our accounts and prospects are necessarily prioritizing going digital in order to meet accelerated demand for infrastr
Slide 21: ARR by Commercial Model
ARR by Commercial Model 22Q3 E365 SMB E365 Prospects Note: Chart segment sizing corresponds to underlying % of 22Q3 ARR 21 © 2023 Bentley Systems, Incorporated |
Slide 22: ARR by Commercial Model
ARR by Commercial Model 22Q4 E365 SMB E365 Prospects Growth during 22Q4 • In consumption, by existing E365 accounts • Accounts new to E365 Note: Chart segment sizing corresponds to underlying % of 22Q4 ARR 22 © 2023 Bentley Systems, Incorporated |
Slide 23: Application Mix Accretion (upsell/cross-sell)
Application Mix Accretion (upsell/cross-sell) 5% ~4.5 % 4% ~3.5 % 3% ~2.5 % 2% 1% 0% 2020 2021 2022 23 © 2023 Bentley Systems, Incorporated |
Slide 24: ARR by Commercial Model
ARR by Commercial Model 22Q4 E365 SMB E365 Prospects Note: Chart segment sizing corresponds to underlying % of 22Q4 ARR 24 © 2023 Bentley Systems, Incorporated |
Slide 25: Virtuosity ARR (Constant Currency)
Virtuosity ARR(Constant Currency*) $35M $30M $25M $20M $15M $10M $5M $- 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 22Q4 Note*: All periods use exchange rates as of Dec 31st 2022. 25 © 2023 Bentley Systems, Incorporated |
Slide 26: Historical Net Revenue Retention (LTM NRR)
Historical Net Revenue Retention (LTM NRR5) Constant Currency Business Performance 112% 111% NRR 110% 109% 108% 107% 106% 105% 104% 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 Footnote 5: See appendix for KPI and non-GAAP definitions 26 © 2023 Bentley Systems, Incorporated
Slide 27: Historical Net Revenue Retention (LTM NRR)
Historical Net Revenue Retention (LTM NRR5) Constant Currency Business Performance 112% 111% NRR 110% 109% 108% 107% 106% 105% 104% 19Q2 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 Footnote 5: See appendix for KPI and non-GAAP definitions 27 © 2023 Bentley Systems, Incorpor
Slide 28: ARR by Commercial Model
ARR by Commercial Model 22Q4 E365 SMB 47% of overall New Business! E365 Prospects Note: Chart segment sizing corresponds to underlying % of 22Q4 ARR 28 © 2023 Bentley Systems, Incorporated |
Slide 29: 2023 outlook factors in a cautious approach to China
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook Our 2023 annual financial outlook must nonetheless factor in a cautious approach to China, where we are appropriately adapting to improve our long-term prospects under the assumption of continued geopolitical c
Slide 30: HDEC and Bentley Software (Beijing) joint venture
December 12, 2022 China Power Construction Group East China Survey and Design Research Institute Co., Ltd. (hereinafter referred to as "HDEC") and Bentley Software (Beijing) Co., Ltd. about establishing a joint venture 30 © 2023 Bentley Systems, Incorporated |
Slide 32: 2023 outlook factors in a cautious approach to China
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook Our 2023 annual financial outlook must nonetheless factor in a cautious approach to China, where we are appropriately adapting to improve our long-term prospects under the assumption of continued geopolitical c
Slide 33: Favorable visibility into comparable growth during 2023
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook The stage is set for relatively favorable visibility into comparable growth during 2023, as our accounts and prospects are necessarily prioritizing going digital in order to meet accelerated demand for infrastr
Slide 34: Agenda
Tone of Business - Greg Operational Perspectives - Nicholas Corporate Developments - Greg Agenda Perspective on Digital Twins - Keith Corporate Developments - David Financial Performance - Werner 34 © 2023 Bentley Systems, Incorporated |
Slide 35: Operational Perspectives
Operational Perspectives Nicholas Cumins, Chief Operating Officer 35 © 2023 Bentley Systems, Incorporated |
Slide 37: Notable Developments in New Business Across Geographies
Notable Developments in New Business Across Geographies 37 © 2023 Bentley Systems, Incorporated |
Slide 38: Jakarta–Bandung High Speed Rail and Metro Manila Subway
PT WIJAYA KARYA (PERSERO) TBK ORIENTAL CONSULTANTS GLOBAL Integrated High Speed Rail & Station Metro Manila Subway Project - Phase 1 Jakarta – Bandung Jakarta – Bandung, Indonesia Metro Manila, Philippines 38 © 2023 Bentley Systems, Incorporated |
Slide 39: Notable Developments in New Business Across Products
Notable Developments in New Business Across Products APPLICATIONS ENGINEERING APPLICATIONS GEOPROFESSIONAL APPLICATIONS (SEEQUENT) - MicroStation - ADINA - OpenBridge - AutoPIPE - OpenBuildings - CUBE - Leapfrog - PLAXIS - OpenFlows - EMME - AGS Workbench - MX Deposit - OpenPlant - LEGION - GeoStudi
Slide 40: 2022 Annual Colleague Engagement Survey
2022 Annual Colleague Engagement Survey 92% 85% 87% Participation Proud to work for Recommend Rate Bentley Bentley 40 © 2023 Bentley Systems, Incorporated |
Slide 41: Corporate Developments
Corporate Developments Greg Bentley, Chief Executive Officer 41 © 2023 Bentley Systems, Incorporated |
Slide 42: Agenda
Tone of Business - Greg Operational Perspectives - Nicholas Corporate Developments - Greg Agenda Perspective on Digital Twins - Keith Corporate Developments - David Financial Performance - Werner 42 © 2023 Bentley Systems, Incorporated |
Slide 43: Founders' Perspectives
Founders’ Perspectives Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook This public listing fulfills our intention for our colleagues to be rewarded, for having devoted their prime working lives, with the deserved satisfaction of their equity being valued by
Slide 44: Further generational management succession
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook We are also announcing further generational management succession, as we round out our expected wave of post-IPO executive retirements with, characteristically, ‘no drama.’ - Greg Bentley, Chief Executive Offic
Slide 45: Margin improvement expressed as Adjusted operating income with SBC
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook Our enduring annual commitment to margin improvement is now expressed in terms of Adjusted operating income inclusive of stock-based compensation (rather than Adjusted EBITDA) to align our external reporting wi
Slide 46: Financial outlook for full year 2023
Bentley Systems Announces 22Q4 and 2022 Operating Results, and its 2023 Financial Outlook The Company is sharing the following financial outlook for the full year 2023: • Adjusted OI w/SBC margin of approximately 26% 46 © 2023 Bentley Systems, Incorporated |
Slide 47: Stock-Based Compensation
Stock-Based Compensation $350.0.0 30.0% 7% 27.3% 28.0% 26.7% $300.0.0 26.0% 26.0% 6% $13.0.0 $250.0.0 24.9% 22.7% 24.0% 5% 21.9% $42.0.0 22.0% $200.0.0 4% 20.0% $150.0.0 3% 18.0% $100.0.0 16.0% 2% 14.0% $50.0.0 1% 12.0% 1.2% $152 1.1% $167 4.0% $219 5.0% $258 6.8% $274 5.5% ~6% $317 0% $- 10.0% 2018
Slide 48: Adjusted Operating Income with Stock-Based Compensation
Adjusted Operating Income with Stock-Based Compensation $350.0.0 $350M 30.0% CAGR 27.3% (2018-2023 Outlook): 15.9% 28.0% 26.7% $300.0.0 $300M 25.7% 26.0% $13.0.0 Normalize Expenses 24.9% $250.0.0 $250M for COVID savings* 24.0% 22.7% $42.0.0 21.9% 22.0% $200.0.0 $200M 20.0% $150.0.0 $150M 18.0% $100.
Slide 49: Adjusted Operating Income with Stock-Based Compensation
Adjusted Operating Income with Stock-Based Compensation $350.0.0 30.0% 28% 27.3% 28.0% 27% 26.7% $300.0.0 26.0% 26.0% 26.0% 26% $13.0.0 25.4%* 24.9% $250.0.0 24.9% 24.0% 22.7% $42.0.0 25% 21.9% 22.0% $200.0.0 24% 4.1% 20.0% 23% $150.0.0 22.7% 22.1%* 18.0% 21.9% 22% $100.0.0 16.0% 21% 14.0% $50.0.0 2
Slide 50: Adjusted Operating Income with Stock-Based Compensation
Adjusted Operating Income with Stock-Based Compensation $350.0.0 $350M 30.0% CAGR 27.3% (2018-2023 Outlook): 15.9% 28.0% 26.7% $300.0.0 $300M 25.7% 26.0% $13.0.0 $250.0.0 24.9% $250M 22.7% 24.0% 21.9% $42.0.0 45 20.0% 22.0% $200.0.0 $200M 40 19.0% 20.0% 35 $150.0.0 $150M 18.0% 18.0% 17.0% 30 $100.0.
Slide 51: Adjusted Operating Income with Stock-Based Compensation
Adjusted Operating Income with Stock-Based Compensation $600M $500M $400M $300M $200M $100M $152 $167 $177 * $245* $274 $313 $0M 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Outlook Note: *Normalized for Covid Savings 51 © 2023 Bentley Systems, Incorporated |
Slide 52: Agenda
Tone of Business - Greg Operational Perspectives - Nicholas Corporate Developments - Greg Agenda Perspective on Digital Twins - Keith Corporate Developments - David Financial Performance - Werner 52 © 2023 Bentley Systems, Incorporated |
Slide 53: Retirement of Founder Keith Bentley and Promotion of Julien Moutte to CTO
Press Release Investor Contact: Eric Boyer Investor Relations Officer ir@bentley.com Bentley Systems Announces Retirement of Founder Keith Bentley and Promotion of Julien Moutte to Chief Technology Officer Former CFO David Hollister Retiring as Chief Investment Officer EXTON, Pa. – Feb 28, 2023 – Be
Slide 54: Retirement of David Hollister
Bentley Systems Announces Retirements of Keith Bentley (Founder, David Hollister has zealously and adroitly stewarded our CTO), and David Hollister (Former CFO) financial, portfolio development, and investment activities, and our IPO in 2020 would not have been possible without his drive and orchest
Slide 55: Retirement of Keith Bentley, Founder and CTO
Bentley Systems Announces Retirements of Keith Bentley (Founder, It is practically unique for any mature software company to have CTO), and David Hollister (Former CFO) had, for its lifetime, a chief inventor who has also been its chief evangelist, both for the work of its engineer users and develop
Slide 56: Perspective on Digital Twins
Perspective on Digital Twins Keith Bentley, Chief Technology Officer 56 © 2023 Bentley Systems, Incorporated |
Slide 59: 36 Finalists - 15 Credited iTwin
BRIDGES AND TUNNELS CONSTRUCTION ENTERPRISE ENGINEERING FERROVIAL CONSTRUCTION AND ACCIONA NATIONAL HIGHWAYS 36 Finalists - 15 Credited iTwin ALAMO NEX CONSTRUCTION IH35 Nex Central Station Safely Removing Dangerous Level Crossings through Digital Complex Infrastructure Programme - A303 ProjectWise
Slide 60: YII 2022 in London Digital Innovation Lab
YII 2022 in London Digital Innovation Lab Immersive Experience 60 © 2023 Bentley Systems, Incorporated |
Slide 61: Expanding the Scope of iTwin
Expanding the Scope of iTwin iTwin Experience iTwin iTwin Capture IoT Bentley Bentley Bentley Open Applications iTwin Platform Infrastructure Cloud 61 © 2023 Bentley Systems, Incorporated |
Slide 62: Corporate Developments
Corporate Developments David Hollister, Chief Investment Officer 62 © 2023 Bentley Systems, Incorporated |
Slide 63: BSY Investments
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 ActivateProgram China
Slide 64: 22Q4 and FY 2022 Financial Performance
22Q4 and FY 2022 Financial Performance Werner Andre, Chief Financial Officer 64 © 2023 Bentley Systems, Incorporated |
Slide 65: Revenue Performance
Revenue Performance Fourth Quarter Full Year $ in millions $ in millions CC constant currency1 CC constant currency1 $1,099 +14% (CC +20%) 96 -4% (CC 0%) $965 43 -18% (CC -12%) 99 53 $287 +7% (CC +13%) $268 23 -7% (CC -1%) 25 12 -38% (CC -33%) 20 960 +18% (CC +24%) 813 252 +13% (CC +18%) 223 2021 20
Slide 66: Recurring Revenue Performance
Recurring Revenue Performance LTM Recurring Revenue Retention ARR Growth7 LTM Recurring Revenues3 Constant Currency1, YoY Constant Currency1, YoY Actual Currency 109% 108% 109% 110% 110% $ in millions 107% 108% 107% 27% 26% 26% 9.0 10.0 9.0 11.0 10.0 11.0 11.0 12.0 23% $978 +17% 13% 13% 15% $834 See
Slide 67: Profitability Performance
Profitability Performance GAAP Operating Income Adjusted EBITDA11 Adjusted EBITDA11 & Margin12 Normalization $ in millions $ in millions 33.3% $ in millions Adj. EBITDA 33.7% Margin12 Includes ~ $91M Deferred compensation plan one-time Adj. EBITDA $366 Margin12 chargea +13% $366 $209 $325 $325 33.3%
Slide 68: Liquidity and Capital Structure
Liquidity and Capital Structure GAAP Operating Cash Flows 12/31/2022 Credit Metrics $ in millions $ in millions Fourth Quarter Full Year Cash $ 72 $288 $274 Senior Debt $ 541 +15% -5% Net Senior Debta $ 469 Net Debt Senior Leverageb 1.3x Available Revolver Credit Capacity $ 504 $81 $36 -55% • Senior
Slide 69: Full Year 2023 Financial Outlook
Full Year 2023 Financial Outlook Financial Metrics Outlook Total Revenues $1,205 million to $1,235 milliona (increase of 9.5% to 12.5%) ARR Growth6 (constant currency1) 11.5% to 13.5%b Adjusted OI w/SBC Margin10 Approximately 26% Effective Tax Rate Approximately 20% Cash Flow from Operations Approxi
Slide 70: Q&A
Q&A
Slide 72: KPI and Non-GAAP Definitions
KPI and Non-GAAP Definitions This presentation includes certain non-GAAP financial measures, which are defined herein. Reconciliations of Adjusted OI w/SBC and Adjusted EBITDA to their nearest GAAP equivalents are included in our Form 8-K (Quarterly Earnings Release) announcing our quarterly operati
Slide 73: KPI and Non-GAAP Definitions
KPI and Non-GAAP Definitions 6. Annualized Recurring Revenues (“ARR”). Our ARR is defined as the sum of the annualized value of our portfolio of contracts that produce recurring revenues as of the last day of the reporting period, and the annualized value of the last three months of recognized reven

Bentley Systems — Q4 2022 / FY2022 Earnings Presentation on 6ix

Bentley Systems — Q4 2022 / FY2022 Earnings Presentation

Slide 1: Q4 & FY 2022 Operating Results

Slide 2: Disclaimer

Slide 3: Q4 & FY 2022 Operating Results

Slide 4: Promotion of Brock Ballard to Chief Revenue Officer and Eric Boyer as IR Officer

Slide 5: Agenda

Slide 6: Retirement of Founder Keith Bentley and Promotion of Julien Moutte to CTO

Slide 7: Retirement of Founder Keith Bentley and Promotion of Julien Moutte to CTO

Slide 8: Tone of Business

Slide 9: Historical ARR Growth

Slide 10: Historical ARR Growth

Slide 11: Q4 and 2022 operating results met expectations

Slide 12: Historical ARR Growth

Slide 13: Tone of Business (ARR by Infrastructure Sector)

Slide 14: Tone of Business (ARR by Infrastructure Sector)

Slide 15: Ratio of Current to Ideal Backlog for Civil Engineers

Slide 16: Ratio of Current to Ideal Backlog for Civil Engineers

Slide 17: Change in Civil Engineers' Backlog Over the Last 6 Months

Slide 18: Current Backlog vs. Previous Quarters

Slide 19: Backlog 12 Months from Now

Slide 20: Favorable visibility into comparable growth during 2023

Slide 21: ARR by Commercial Model

Slide 22: ARR by Commercial Model

Slide 23: Application Mix Accretion (upsell/cross-sell)

Slide 24: ARR by Commercial Model

Slide 25: Virtuosity ARR (Constant Currency)

Slide 26: Historical Net Revenue Retention (LTM NRR)

Slide 27: Historical Net Revenue Retention (LTM NRR)

Slide 28: ARR by Commercial Model

Slide 29: 2023 outlook factors in a cautious approach to China

Slide 30: HDEC and Bentley Software (Beijing) joint venture

Slide 31: HDEC

Slide 32: 2023 outlook factors in a cautious approach to China

Slide 33: Favorable visibility into comparable growth during 2023

Slide 34: Agenda

Slide 35: Operational Perspectives

Slide 36: Gus Bergsma and Brock Ballard

Slide 37: Notable Developments in New Business Across Geographies

Slide 38: Jakarta–Bandung High Speed Rail and Metro Manila Subway

Slide 39: Notable Developments in New Business Across Products

Slide 40: 2022 Annual Colleague Engagement Survey

Slide 41: Corporate Developments

Slide 42: Agenda

Slide 43: Founders' Perspectives

Slide 44: Further generational management succession

Slide 45: Margin improvement expressed as Adjusted operating income with SBC

Slide 46: Financial outlook for full year 2023

Slide 47: Stock-Based Compensation

Slide 48: Adjusted Operating Income with Stock-Based Compensation

Slide 49: Adjusted Operating Income with Stock-Based Compensation

Slide 50: Adjusted Operating Income with Stock-Based Compensation

Slide 51: Adjusted Operating Income with Stock-Based Compensation

Slide 52: Agenda

Slide 53: Retirement of Founder Keith Bentley and Promotion of Julien Moutte to CTO

Slide 54: Retirement of David Hollister

Slide 55: Retirement of Keith Bentley, Founder and CTO

Slide 56: Perspective on Digital Twins

Slide 57: © 2023 Bentley Systems, Incorporated |

Slide 58: © 2023 Bentley Systems, Incorporated |

Slide 59: 36 Finalists - 15 Credited iTwin

Slide 60: YII 2022 in London Digital Innovation Lab

Slide 61: Expanding the Scope of iTwin

Slide 62: Corporate Developments

Slide 63: BSY Investments

Slide 64: 22Q4 and FY 2022 Financial Performance

Slide 65: Revenue Performance

Slide 66: Recurring Revenue Performance

Slide 67: Profitability Performance

Slide 68: Liquidity and Capital Structure

Slide 69: Full Year 2023 Financial Outlook

Slide 70: Q&A

Slide 71: Appendix

Slide 72: KPI and Non-GAAP Definitions

Slide 73: KPI and Non-GAAP Definitions