Bentley Systems, Incorporated · NASDAQ:BSY

Bentley Systems — Q1 2021 Earnings Presentation

63 slides from Bentley Systems's earnings presentation, May 11, 2021

  1. Slide 1: 21Q1 Operating Results…

    21Q1 Operating Results… Greg Bentley, CEO May 11, 2021 2 | © 2021 Bentley Systems, Incorporated

  2. Slide 2: 21Q1 Operating Results…

    INDEX 21Q1 Operating Results… Greg Bentley, CEO May 11, 2021 3 | © 2021 Bentley Systems, Incorporated

  3. Slide 3: © 2021 Bentley Systems, Incorporated

    INDEX 4 | © 2021 Bentley Systems, Incorporated

  4. Slide 4: ARR by Consumption Model

    INDEX ARR by Consumption Model Daily Daily(E365) (E365) Annual Term ELS Monthly and Quarterly Terms As of March 31, 2021 5 | © 2021 Bentley Systems, Incorporated

  5. Slide 5: ARR by Consumption Model

    INDEX ARR by Consumption Model E365 Daily Daily(E365) (E365) Annual Term ELS SELECT Monthly and Quarterly Term Terms Licenses As of March 31, 2021 6 | © 2021 Bentley Systems, Incorporated

  6. Slide 6: 2021 to Date…

    INDEX 2021 to Date… Commercial/ Commercial/ Facilities Facilities Industrial/ Industrial/ Resources Resources Public Public Works/Utilities Works/Utilities 7 | © 2021 Bentley Systems, Incorporated

  7. Slide 7: Revenues by Account Type

    INDEX Revenues by Account Type Project Delivery Owner-Operators 8 | © 2021 Bentley Systems, Incorporated

  8. Slide 8: Comprehensiveness Wins! Revenues by Account Type and Size

    INDEX Comprehensiveness Wins! Revenues by Account Type and Size No account > 2.5% 46 60 >$1M >$1M 198 $250K - 162 $250K - $1M $1M $100K - $100K - $250K $250K 286 317 <$100K <$100K = Number of Accounts Note: All figures as of Dec 31, 2020. All figures calculated using ASC 606. Chart segment sizing co

  9. Slide 9: Revenues by Account Size

    INDEX Revenues by Account Size Large Accounts SMBs Note: All revenue and account figures as of Dec. 31, 2020. All figures calculated using ASC 606. Chart segment sizing corresponds to underlying % of 2020 Revenue. 10 | © 2021 Bentley Systems, Incorporated

  10. Slide 10: 21Q1 New Business Growth by Account Size

    INDEX 21Q1 New Business Growth by Account Size Large Accounts SMBs 11 | © 2021 Bentley Systems, Incorporated

  11. Slide 11: © 2021 Bentley Systems, Incorporated

    INDEX 12 | © 2021 Bentley Systems, Incorporated

  12. Slide 12: © 2021 Bentley Systems, Incorporated

    INDEX 13 | © 2021 Bentley Systems, Incorporated

  13. Slide 13: Revenues by Infrastructure Lifecycle: 21Q1 Subscription Revenue Growth

    INDEX Revenues by Infrastructure Lifecycle: 21Q1 Subscription Revenue Growth  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite 

  14. Slide 14: Comprehensiveness Across Geographies: 21Q1 Subscription Revenue Growth

    INDEX Comprehensiveness Across Geographies: 21Q1 Subscription Revenue Growth Note: $ Amounts are revenues in millions, based on 2019 ASC 606. 15 | © 2021 Bentley Systems, Incorporated

  15. Slide 15: 21Q1 Operating Results…

    INDEX 21Q1 Operating Results… 16 | © 2021 Bentley Systems, Incorporated

  16. Slide 16: Corporate Developments

    INDEX Corporate Developments 17 | © 2021 Bentley Systems, Incorporated

  17. Slide 17: © 2021 Bentley Systems, Incorporated

    INDEX 18 | © 2021 Bentley Systems, Incorporated

  18. Slide 18: © 2021 Bentley Systems, Incorporated

    INDEX 19 | © 2021 Bentley Systems, Incorporated

  19. Slide 19: UN Sustainable Development Goals: SDG; Environment, Social, and Governance: ESG

    INDEX UN Sustainable Development Goals: SDG Environment, Social, and Governance: ESG 20 | © 2021 Bentley Systems, Incorporated

  20. Slide 20: ES(D)G

    INDEX Empowering Sustainable Development Goals: ES(D)G The Infrastructure Engineering Software Company 21 | © 2021 Bentley Systems, Incorporated

  21. Slide 21: BSY's Footprint, BSY's Handprint

    INDEX BSY’s Footprint BSY’s Handprint The sustainability of The sustainability our operations impact of engineers using our products 22 | © 2021 Bentley Systems, Incorporated

  22. Slide 22: BSY's Footprint, BSY's Handprint

    INDEX BSY’s Footprint BSY’s Handprint The sustainability of The sustainability our operations impact of engineers using our products 23 | © 2021 Bentley Systems, Incorporated

  23. Slide 23: © 2021 Bentley Systems, Incorporated

    INDEX 24 | © 2021 Bentley Systems, Incorporated

  24. Slide 24: ES(D)G

    INDEX ES(D)G 25 | © 2021 Bentley Systems, Incorporated

  25. Slide 25: May 4, 2021

    INDEX May 4, 2021 26 | © 2021 Bentley Systems, Incorporated

  26. Slide 26: www.bentley.com/en/infrastructure-yearbook

    INDEX www.bentley.com/en/infrastructure-yearbook 27 | © 2021 Bentley Systems, Incorporated

  27. Slide 27: Microsoft Ignite Developer Conference, March 2, 2021

    INDEX Microsoft Ignite Developer Conference, March 2, 2021 Featured in the launch of Microsoft Mesh at Discover how Bentley Systems enables remote bridge Microsoft Ignite Conference March 2, 2021 inspection with Azure Remote Rendering and #Microsoft​ HoloLens. (with MNDOT and Collins Engineers) Watc

  28. Slide 28: Partnership with NVIDIA Omniverse quote

    INDEX We are super excited to partner with Bentley to create infrastructure digital twins in Omniverse. Bentley is the first third-party company to be developing a suite of applications on the Omniverse platform. This is just an awesome use of Omniverse, a great example of digital twins, and Bentley

  29. Slide 29: © 2021 Bentley Systems, Incorporated

    INDEX 30 | © 2021 Bentley Systems, Incorporated

  30. Slide 30: Communications Towers' Digital Context

    an Communications Towers’ Digital Context INDEX Courtesy of Visual Intelligence Bentley

  31. Slide 31: The Digital Twins Opportunity: Requirements and Benefits

    INDEX The Digital Twins Opportunity: Requirements and Benefits Digital Context Bentley’s Offerings (for reality) From ContextCapture Continuously 4D surveyed From IoT AssetWise Analytics Photogrammetry Sensors iTwin Services to keep the Digital Twin and Scans “live” and evergreen 32 | © 2021 Ben

  32. Slide 32: The Digital Twins Opportunity: Requirements and Benefits

    INDEX The Digital Twins Opportunity: Requirements and Benefits Digital Context Bentley’s Offerings (for reality) From ContextCapture Continuously 4D surveyed From IoT AssetWise Analytics Photogrammetry Sensors iTwin Services to keep the Digital Twin and Scans “live” and evergreen Digital Compon

  33. Slide 33: The Digital Twins Opportunity: Requirements and Benefits

    INDEX The Digital Twins Opportunity: Requirements and Benefits Digital Context Bentley’s Offerings (for reality) From ContextCapture Continuously 4D surveyed From IoT AssetWise Analytics Photogrammetry Sensors iTwin Services to keep the Digital Twin and Scans “live” and evergreen Digital Compon

  34. Slide 34: Infrastructure Digital Twins: Communications Towers

    INDEX Infrastructure Digital Twins: Communications Towers Azure OpenTower iQ IT: Information Technology Digital Chronology 35 | © 2021 Bentley Systems, Incorporated

  35. Slide 35: Infrastructure Digital Twins: Communications Towers

    INDEX Infrastructure Digital Twins: Communications Towers RUST Machine Learning Machine Learning Classification of Inspection/Detection Equipment of Defects Structural Engineering Model Azure OpenTower iQ OpenTower Equipment Models Designer ET: Engineering Technology IT: Information Technology Digit

  36. Slide 36: Infrastructure Digital Twins: Communications Towers

    INDEX Infrastructure Digital Twins: Communications Towers RUST Advanced Analytics Machine Learning Machine Learning Classification of Inspection/Detection Equipment of Defects Structural Engineering Model Azure UAV-captured IoT-reported OpenTower iQ Physical Context Operating Context OpenTower Equip

  37. Slide 37: IIoT

    INDEX IIoT RUST Advanced Analytics Machine Learning Machine Learning Classification of Inspection/Detection Equipment of Defects Structural Engineering Model Azure UAV-captured IoT-reported OpenTower iQ Physical Context Operating Context OpenTower Equipment Models Designer ET: Engineering Technology

  38. Slide 38: © 2021 Bentley Systems, Incorporated

    INDEX 39 | © 2021 Bentley Systems, Incorporated

  39. Slide 39: Revenues by Account Type: Digital Twin Opportunities

    INDEX Revenues by Account Type: Digital Twin Opportunities Digital Integrators Proprietary Analytics Project Delivery Owner-Operators 40 | © 2021 Bentley Systems, Incorporated

  40. Slide 40: Revenues by Account Type: Digital Twin Opportunities

    INDEX Revenues by Account Type: Digital Twin Opportunities Digital Integrators Proprietary Analytics Project Delivery Owner-Operators Infrastructure Monitoring Services 41 | © 2021 Bentley Systems, Incorporated

  41. Slide 41: © 2021 Bentley Systems, Incorporated

    INDEX 42 | © 2021 Bentley Systems, Incorporated

  42. Slide 42: Infrastructure Digital Twins: Earthen Dams

    INDEX Infrastructure Digital Twins: Earthen Dams Page 89 2020 Finalist: Geotechnical Engineering Oroville Dam, Tallest Earthen Embankment Dam in the United States, 3D Seepage and Stability Analysis HDR Engineering www.bentley.com/en/infrastructure-yearbook 43 | © 2021 Bentley Systems, Incorporated

  43. Slide 43: Infrastructure Digital Twins: Earthen Dams

    INDEX Infrastructure Digital Twins: Earthen Dams Image Courtesy of HDR (Oroville Dam) Image Courtesy of HDR (Oroville Dam) Advanced Analytics Dam Digital Twin Azure UAV-captured IoT-reported Physical Context Condition Context PLAXIS ET: Engineering Technology IT: Information Technology OT: Operation

  44. Slide 44: Acquisition of Seequent: Deepening the Potential of Subsurface Digital Twins

    INDEX Acquisition of Seequent Deepening the Potential of Subsurface Digital Twins Greg Bentley, CEO, and David Hollister, CFO March 12, 2021

  45. Slide 45: ET: Engineering Technology OT: Operational Technology

    INDEX IoT-reported Condition Context ET: Engineering Technology OT: Operational Technology Digital Components Digital Context 46 | © 2021 Bentley Systems, Incorporated

  46. Slide 46: Mexico City: May 4, 2021

    INDEX Mexico City: May 4, 2021 After Before 47 | © 2021 Bentley Systems, Incorporated

  47. Slide 47: Infrastructure Digital Twins: Roadway Bridges

    INDEX Infrastructure Digital Twins: Roadway Bridges Page 17 2020 Special Recognition Winner: Advancing Bridge Asset Performance Modeling A Smartwatch on the Bridge Ulsan National Institute of Science and Technology (UNIST) www.bentley.com/en/infrastructure-yearbook 48 | © 2021 Bentley Systems, Incor

  48. Slide 48: Infrastructure Digital Twins: Roadway Bridges

    INDEX Infrastructure Digital Twins: Roadway Bridges Image courtesy of: Image courtesy of: Ulsan National Institute of Science and Technology (UNIST) Ulsan National Institute of Science and Technology (UNIST) Advanced Analytics Bridge Digital Twin Azure OpenBridge RM Bridge Camera-captured IoT-report

  49. Slide 49: © 2021 Bentley Systems, Incorporated

    INDEX 50 | © 2021 Bentley Systems, Incorporated

  50. Slide 50: Infrastructure Digital Twins: Mobility

    INDEX Infrastructure Digital Twins: Mobility DynaMeq: Vehicle-based Traffic Simulation for Cities Emme: Multi-modal Regional Transportation Advanced Analytics Planning Cube: Transportation and Land-use Modeling LEGION Mobility Digital Twin Azure Camera-captured IoT-reported Roadway Context Traffic C

  51. Slide 51: First Quarter 2021…

    First Quarter 2021… David Hollister, CFO 52 | © 2021 Bentley Systems, Incorporated

  52. Slide 52: Revenue Performance

    Revenue Performance First Quarter Full Year $ in millions $ in millions $920 +14.8% $801.5 $895 +11.7% 64.9 57.4 +14.0% $222.0 $194.7 +73.5% 23.8 13.7 10.1 -6.5% 679.3 10.8 +10.5% 170.2 188.1 2020 2021 2020 FY 2021 Outlook Subscriptions Licenses Services Subscriptions Licenses Services 53 | © 2021 B

  53. Slide 53: Recurring Revenue Performance

    Recurring Revenue Performance ARR: 10% Y-o-Y constant currency growth $760.2 million at 3/31/2021 spot Recurring Revenues1 Recurring Revenue Retention $ in millions 107% 108% 108% 107% $716.9 +10.7% 9.0 10.0 10.0 9.0 $647.6 98% 98% 98% 98% LTM Q120 LTM Q121 2018 2019 2020 Q121 Account Retention (Dol

  54. Slide 54: Profitability Performance

    Profitability Performance GAAP Operating Income Adjusted EBITDA4 $ in millions $ in millions 37.3% Adj. EBITDA Margin5 $55.6 $82.8 29.7% Adj. EBITDA Margin5 +43% $46.0 $57.9 Q120 Q121 Q120 Q121 Footnotes: 4, 5 – See appendix for KPI and non-GAAP definitions and reconciliations 55 | © 2021 Bentley Sy

  55. Slide 55: Liquidity and Capital Structure

    Liquidity and Capital Structure GAAP Operating Cash Flows January 2021 Financing Transactions $ in millions • $850 million Senior Secured Revolver due 2025 First Quarter Last Twelve Months • Refinanced existing revolver; $3.6 million fees • Retained $200 million swap paying fixed .73% 318.5 • $690 m

  56. Slide 56: BSY Seasonality Commentary

    BSY Seasonality Commentary On Revenues On ARR  Perpetual license sales historically are highest in Q4 of each year  A significant proportion of ARR growth occurs upon renewal of contracts  Annually renewed and billed ELS subscriptions (>80% up-front rev rec at start of contract term) create intra

  57. Slide 57: Full Year 2021 Financial Outlook

    Full Year 2021 Financial Outlook Financial Metrics Guidance Total Revenues $895 million to $920 million increase of 11.7% to 14.8% ARR Growth (constant currency) 8% to 10% Adjusted EBITDA4 $285 million to $295 million approximately 32% Margin5 Additional expectations to support financial modeling •

  58. Slide 58: Seequent Transaction Summary

    Seequent Transaction Summary • Consideration of ~$1,050 million, including 3,141,361 shares of BSY Class B Common Stock, Terms & Valuation for 100% of the outstanding shares of Seequent • Valuation in line with industry peers • Cash consideration to be paid with a combination of cash on hand and ava

  59. Slide 59: Long term financial model targets

    Long term financial model targets Financial Metrics Targets Comments Historical growth trends inflected for Total Revenues ~10% per year growth initiatives and subject to pace and scale of acquisitions Subject to modest dilution from Adjusted EBITDA Margin5 ~100BPS accretion per year Digital Integra

  60. Slide 60: Q&A

    Q&A 61 | © 2021 Bentley Systems, Incorporated

  61. Slide 61: 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

  62. Slide 62: Non-GAAP Reconciliation: Adjusted EBITDA

    Non-GAAP Reconciliation: Adjusted EBITDA Three Months Ended March 31, 2021 2020 Net Income $ 57,006 $ 29,669 Interest expense, net 2,319 1,388 Provision for income taxes 10,358 7,176 Depreciation and amortization 8,993 8,050 Stock-based compensation 8,913 1,653 Acquisition expenses 9,256 2,275 Reali

  63. Slide 63: Thank You

    Thank You 64 | © 2021 Bentley Systems, Incorporated

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