Bentley Systems, Incorporated · NASDAQ:BSY
Bentley Systems — Q1 2023 Earnings Presentation
42 slides from Bentley Systems's earnings presentation, 2023
Slide 1: © 2023 Bentley Systems, Incorporated |
1 © 2023 Bentley Systems, Incorporated |
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 st
Slide 3: Directions and Developments
Directions and Developments Greg Bentley, Chief Executive Officer 3 © 2023 Bentley Systems, Incorporated |
Slide 4: Agenda
Directions and Developments - Greg Agenda Operational Perspectives - Nicholas Financial Performance - Werner 4 © 2023 Bentley Systems, Incorporated |
Slide 5: 23Q1: Resilience and Consistency
23Q1: Resilience and Consistency… Consistent Growth in Revenues, Operating Margin; Inordinately Strong Cash Flow Continued Momentum across Sectors, Regions, E365 and Virtuosity Unpredictable China… Enhanced Confidence in 2023 Outlook 2022 Going Digital Awards in Infrastructure WINNER RAIL & TRANSIT
Slide 6: YoY ARR Growth
YoY ARR Growth8 Robust start to the year… Constant Currency Business Performance 14% 12% 10% 8% 6% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 Note: Annualized Recurring Revenue ARR6 Footnotes 6,8 : See appendix for KPI and non-GAAP definitions 6 © 2023 Bentley Systems, Incorpor
Slide 7: YoY LTM Recurring Revenues Dollar-Based Net Retention Rate
YoY LTM Recurring Revenues Dollar-Based Net Retention Rate5 (NRR) Continued consistency… Constant Currency Business Performance 112% 111% 110% 109% 108% 107% 106% 105% 104% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 Footnote 5: See appendix for KPI and non-GAAP definitions 7 ©
Slide 8: Change in Civil Engineers' Backlog Over the Last 6 Months
Change in Civil Engineers’ Backlog Over the Last 6 Months Continued visibility… 26% 21% 18% 19% Increased Significantly 50% 38% 39% 38% Increased Somewhat 16% 24% 26% 27% Stayed About the Same 22Q2 22Q3 22Q4 23Q1 Source: Dodge Construction Network. Q1 2023 Quarterly Report - https://www.construction
Slide 9: Backlog 12 Months from Now
Backlog 12 Months from Now Continued confidence… Decrease a lot Decrease a little Stay about Increase a little Increase a lot the same 2023 Q1 (n=522) Source: ACEC Research Institute Engineering Business Sentiment © | 2023 Q1 - https://programs.acec.org/impact-report-21/ 9 © 2023 Bentley Systems, In
Slide 10: Economic Sentiment 12 Months from Now vs. Previous Quarters
Economic Sentiment 12 Months from Now vs. Previous Quarters Macro-resilient expectations… Condition of the Condition of the engineering Condition of your firm’s U.S. Economy and design services industry overall finances +60 +40 +33 +29 +31 +33 +20 +16 +12 +19 +11 0 22Q2 22Q3 22Q4 23Q1 22Q2 22Q3 22Q4
Slide 11: Current (ACEC) Industry Sentiment by (BSY) Sector
Current (ACEC) Industry Sentiment by (BSY) Sector “Horizontal” infrastructure resilience… BSY Infrastructure Sector 100 Resources Public Works/Utilities 80 Industrial Commercial/Facilities 60 40 20 0 Source: ACEC Research Institute Engineering Business Sentiment © | 2023 Q1 - https://programs.acec.o
Slide 12: ENR Top Design Firms by (BSY) Sector
ENR (U.S. HQ) Top 500 Design Firms by (BSY) Sector Design billings by sector $40 $ MILLIONS BSY Infrastructure Sector $35 Resources $30 Public Works/Utilities Industrial $25 Commercial/Facilities $20 $15 $10 $5 $0 Source: Engineering News-Record Top Lists - https://www.enr.com/toplists May 2023 12 ©
Slide 13: ENR Top Design Firms Design Billings
ENR (U.S. HQ) Top 500 Design Firms Design Billings Total design billings $130 $ BILLIONS $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Engineering News-Record Top Lists - https://www.enr.com/toplist May 2023 13 © 2023 Bentley Systems,
Slide 14: ENR (Global) Top Design Firms
ENR (Global) Top Design Firms $216 Billion 637 Firms (Globally) (Design Billings) 29 Firms (China) $58 Billion (Design Billings) Source: ENR Top 500 Design Firms (https://www.enr.com/toplists, / Top 225 International Design Firms / Top 150 Global Design Firms 2022 14 © 2023 Bentley Systems, Incorpor
Slide 15: ENR (Global) Top Design Firms: ProjectWise Opportunity
ENR (Global) Top Design Firms ProjectWise: established leader, with ample opportunity… Assume $200k/FTE 608 Firms (ex-China) (ex-China) 14% (ex-China) $157 Billion Quarterly ProjectWise users (Design Billings) Source: ENR Top 500 Design Firms (https://www.enr.com/toplists, / Top 225 International De
Slide 16: ENR (Global) Top Design Firms: Long Runway
ENR (Global) Top Design Firms LONG runway for more valuable offerings (application mix accretion)… ~$150.00 Design Billing Hour $1.41 Average BSY Application Cost $0.39 Average ProjectWise Cost Source: ENR Top 500 Design Firms (https://www.enr.com/toplists, / Top 225 International Design Firms / Top
Slide 17: Directions and Developments
Directions and Developments Greg Bentley, Chief Executive Officer 17 © 2023 Bentley Systems, Incorporated |
Slide 18: Bentley Systems Announces Strategic Agreement with Worldsensing
Bentley Systems Announces Strategic Agreement with Worldsensing Worldsensing Acquires sensemetrics’ Thread Connectivity Device Business, While Bentley Becomes Lead Investor in Worldsensing’s Series D Capital Raise, and Both Parties Align on a Unique Joint Go-to-Market Offering EXTON, Pa., and Barcel
Slide 19: BSY Leverage?
BSY Leverage? Senior Bank Debt E $340 Million (Net of Cash) D Convertible Debt a q e 43% u b 1/2026 @ $64.13 a $688 Million 39% i t 7/2027 @ $83.23 $575 Million t y Footnote a: Delta (%) as found on Bloomberg for our convertible debt issuances as of April 26, 2023 19 © 2023 Bentley Systems, Incorpor
Slide 20: BSY Leverage?
BSY Leverage? Senior Bank Debt E $340 Million (Net of Cash) D Convertible Debt a q e 43% $394 Million 4.58 Million Shares u b 1/2026 @ $64.13 a $688 Million 39% i t $351 Million 2.69 Million Shares 7/2027 @ $83.23 $575 Million t y Footnote a: Delta (%) as found on Bloomberg for our convertible debt
Slide 21: BSY Leverage? (x Adjusted EBITDA of $383 Million)
BSY Leverage? (x Adjusted EBIDTA of $383 Million) Senior Bank Debt .9 E $340 Million (Net of Cash) D Convertible Debt a q e 43% $394 Million 1.0 4.58 Million Shares u b a 39% i t $351 Million .9 2.69 Million Shares t 2.8 y Footnote a: Delta (%) as found on Bloomberg for our convertible debt issuance
Slide 22: Operational Perspectives
Operational Perspectives Nicholas Cumins, Chief Operating Officer 22 © 2023 Bentley Systems, Incorporated |
Slide 23: Tone of Business by Infrastructure Sector
Tone of Business by Infrastructure Sector Consistent trends quarter over quarter Commercial/Facilities Industrial Public Works/ Resources Resources Utilities Tone of Business Very Strong Strong Solid Flat Note: Chart segment sizing corresponds to underlying % of 23Q1 ARR6 Footnote 6 : See appendix f
Slide 24: Tone of Business by Commercial Model
Tone of Business by Commercial Model E365 and Virtuosity continue upward inflection E365 SMB E365 Prospects E365 growth during 23Q1 • In consumption, by existing E365 accounts • Accounts new to E365 Note: Chart segment sizing corresponds to underlying % of 23Q1 ARR6 Footnote 6 : See appendix for KPI
Slide 25: Virtuosity ARR (Constant Currency)
Virtuosity ARR (Constant Currency1) 6 Highest number of new logos in a single quarter $35M $30M $25M $20M $15M $10M $5M $- 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 Footnotes 1,6 : See appendix for KPI and non-GAAP definitions 25 © 2023 Bentley Systems, Incorporated |
Slide 26: Notable Developments in New Business Across Geographies
Notable Developments in New Business Across Geographies India a bright spot; continued solid growth in Europe 26 © 2023 Bentley Systems, Incorporated |
Slide 27: Notable Developments in New Business Across Products
Notable Developments in New Business Across Products Strong growth of engineering applications in Transportation in North America APPLICATIONS ENGINEERING APPLICATIONS GEOPROFESSIONAL APPLICATIONS (SEEQUENT) - MicroStation - ADINA - OpenBridge - AutoPIPE - OpenBuildings - CUBE - Leapfrog - PLAXIS -
Slide 28: US DOTs Embracing Digital Delivery
US DOTs Embracing Digital Delivery User projects from YII Going Digital Awards Minnesota Department Texas Department New York State Department of Transportation (MnDOT) of Transportation (TxDOT) of Transportation (NYSDOT) Image courtesy of WSB Image courtesy of Ferrovial Construction and Alamo Nex C
Slide 29: WSB and Bentley Systems Offer New Digital Construction Management Service Based on SYNCHRO
WSB and Bentley Systems Offer New Digital Construction Management Service Based on SYNCHRO Will Provide Digital Integrator and Advisory Services for Construction Digital Twins Running in Bentley Infrastructure Cloud EXTON, Pa., and MINNEAPOLIS – March 13, 2023– Bentley Systems, Incorporated (Nasdaq:
Slide 30: Financial Performance
Financial Performance Werner Andre, Chief Financial Officer 30 © 2023 Bentley Systems, Incorporated |
Slide 31: Revenue Performance
Revenue Performance Full Year (As Presented at our 22Q4 Operating Results Call) First Quarter $ in millions $ in millions CC constant currency1 CC constant currency1 $1,205 - $1,235 +9.5% to +12.5% $1,099 $1,205 CC +10.5% to +13.5% 96 43 $314 +14% (CC +17%) 27 +12% (CC +17%) $276 10 -6% (CC -3%) 24
Slide 32: Recurring Revenue Performance
Recurring Revenue Performance LTM Recurring Revenues3 LTM Recurring Revenue Retention $ in millions Constant Currency1, YoY CC constant currency1 109% 110% 110% 110% 107% 108% 107% 9.0 10.0 9.0 11.0 12.0 12.0 12.0 +14% $1,014 CC+20% $886 98% 98% 98% 98% 98% 98% 98% LTM 22Q1 LTM 23Q1 2018 2019 2020 2
Slide 33: Recurring Revenue Performance
Recurring Revenue Performance ARR Growth7,8 Constant Currency1, YoY Business Performance8 27% Impact from the onboarding of 26% 26% Platform Acquisitions 23% 13% 13% 15% Seequent 21Q2 to 22Q1 and 13% Power Line Systems 15% 14% 14% 22Q1 to 22Q4 2.5% 13% 2.5% 2.5% 13% 13% 12% 12.5% 11.5% 11.5% 10% 10%
Slide 34: Profitability Performance
Profitability Performance GAAP Operating Income Adjusted OI w/ SBC9 $ in millions $ in millions 28.8% Adj. OI w/ SBC Margin10 28.4% $66 Adj. OI w/ SBC $90 +16% Margin10 +15% $57 $78 +15% 22Q1 23Q1 22Q1 23Q1 Footnote 9,10: See appendix for KPI and non-GAAP definitions 34 © 2023 Bentley Systems, Incor
Slide 35: Liquidity and Capital Structure
Liquidity and Capital Structure GAAP Operating Cash Flows 23Q1 Credit Metrics $ in millions $ in millions First Quarter Last Twelve Months $349 Cash $ 94 Senior Debta $ 434 +36% +3 Net Senior Debtb $ 340 6% $257 Net Senior Debt Leveragec 0.9x $176 +73% Available Revolver Credit Capacity $ 610 $102 •
Slide 36: Full Year 2023 Financial Outlook
Full Year 2023 Financial Outlook (As Presented at our 22Q4 Operating Results Call) Financial Metrics Outlook Total Revenues $1,205 million to $1,235 milliona (increase of 9.5% to 12.5%) ARR Growth8 (constant currency1) 11.5% to 13.5%b Adjusted OI w/SBC Margin10 Approximately 26% Effective Tax Rate A
Slide 37: Q&A
Qa&iA
Slide 38: Appendix
Appendix 38 © 2023 Bentley Systems, Incorporated |
Slide 39: KPI and Non-GAAP Definitions
KPI and Non-GAAP Definitions This presentation includes certain KPIs and 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 quarterl
Slide 40: 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
Slide 41: Adjusted EBITDA
Adjusted EBITDA11 First Quarter Last Twelve Months $ in millions $ in millions $114 $383 +17% +17% +13% $98 $340 +13% 22Q1 23Q1 22Q1 23Q1 Footnote 11: See appendix for KPI and non-GAAP definitions 41 © 2023 Bentley Systems, Incorporated |
Slide 42: We Recently Published our First ESG Report
We Recently Published our First ESG Report Can be found on our IR website 2022 ESG Report Image Courtesy of PT Hutama Karya (Persero) https://investors.bentley.com/ 42 © 2023 Bentley Systems, Incorporated |