Bentley Systems, Incorporated · NASDAQ:BSY

Bentley Systems — Q4 2020 Earnings Presentation

60 slides from Bentley Systems's earnings presentation, 2021

  1. Slide 1: © 2021 Bentley Systems, Incorporated

    1 | © 2021 Bentley Systems, Incorporated

  2. Slide 2: Disclaimer

    Disclaimer The forward-looking statements contained in this presentation reflect Bentley Systems’ expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Any statements made in this presentation that are

  3. Slide 3: Corporate Developments

    Corporate Developments Greg Bentley, CEO 3 | © 2021 Bentley Systems, Incorporated

  4. Slide 4: IPO on September 23, Opening Bell September 24

    IPO on September 23 Opening Bell September 24 4 | © 2021 Bentley Systems, Incorporated

  5. Slide 5: Infrastructure Yearbook

    www.bentley.com/en/infrastructure-yearbook 5 | © 2021 Bentley Systems, Incorporated

  6. Slide 6: © 2021 Bentley Systems, Incorporated

    6 | © 2021 Bentley Systems, Incorporated

  7. Slide 7: © 2021 Bentley Systems, Incorporated

    7 | © 2021 Bentley Systems, Incorporated

  8. Slide 8: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Programmatic and opportunistic acquisitions 8 | © 2021 Bentley Systems, Incorporated

  9. Slide 9: SRO Solutions

    SRO Solutions 9 | © 2021 Bentley Systems, Incorporated

  10. Slide 10: E7

    E7 10 | © 2021 Bentley Systems, Incorporated

  11. Slide 11: Exiting 2020…

    Exiting 2020… Greg Bentley, CEO 11 | © 2021 Bentley Systems, Incorporated

  12. Slide 12: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources EPCs Public Works/Utilities (Engineering/Procurement/Construction) 12 | © 2021 Bentley Systems, Incorporated

  13. Slide 13: ARR by Consumption Model

    ARR by Consumption Model EPCs (Engineering/Procurement/Construction) Daily (E365) Daily (E365) Monthly and Quarterly Terms Annual Term As of June 30, 2020 13 | © 2021 Bentley Systems, Incorporated

  14. Slide 14: ARR by Consumption Model: (Exiting 2020…)

    ARR by Consumption Model: (Exiting 2020…) Added E365 volatility with “collars” Daily (E365) Daily (E365) Monthly and Quarterly Terms Annual Term As of June 30, 2020 14 | © 2021 Bentley Systems, Incorporated

  15. Slide 15: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources EPCs Public Works/Utilities (Engineering/Procurement/Construction) 15 | © 2021 Bentley Systems, Incorporated

  16. Slide 16: 2020 to Date… (Exiting 2020)

    2020 to Date… (Exiting 2020) EPCs (Engineering/Procurement/Construction) 16 | © 2021 Bentley Systems, Incorporated

  17. Slide 17: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources EPCs Public Works/Utilities (Engineering/Procurement/Construction) 17 | © 2021 Bentley Systems, Incorporated

  18. Slide 18: Revenues by Infrastructure Sector and Discipline

    Revenues by Infrastructure Sector and Discipline Water and Commercial / Rail and Waste Facililties Transit Municipal / Mapping Geotechnical Industrial / Resources T&D Utilities Public Works / Utilities Roads and Bridges We believe we are the market leader in these sectors and disciplines of infrastr

  19. Slide 19: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 19 | © 2021 Bentley Systems, Incorporated

  20. Slide 20: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCHRO  OpenFlows  OpenUtilities  S

  21. Slide 21: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCHRO  OpenFlows  OpenUtilities  S

  22. Slide 22: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 22 | © 2021 Bentley Systems, Incorporated

  23. Slide 23: 2020 to Date… (20Q4)

    2020 to Date… (20Q4) Commercial/ Facilities Industrial/ Resources Public Works/Utilities 23 | © 2021 Bentley Systems, Incorporated

  24. Slide 24: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCHRO  OpenFlows  OpenUtilities  S

  25. Slide 25: Revenues by Infrastructure Lifecycle (Commercial / Facilities Products)

    Revenues by Infrastructure Lifecycle (Commercial / Facilities Products)  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNC

  26. Slide 26: 2020 to Date…

    2020 to Date… Commercial/ Facilities Industrial/ Resources Public Works/Utilities 26 | © 2021 Bentley Systems, Incorporated

  27. Slide 27: 2020 to Date… (20Q4)

    2020 to Date… (20Q4) Commercial/ Facilities Industrial/ Resources Public Works/Utilities 27 | © 2021 Bentley Systems, Incorporated

  28. Slide 28: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCHRO  OpenFlows  OpenUtilities  S

  29. Slide 29: Revenues by Infrastructure Lifecycle (Industrial / Resources Products)

    Revenues by Infrastructure Lifecycle (Industrial / Resources Products)  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCH

  30. Slide 30: 2020 to Date… (20Q4)

    2020 to Date… (20Q4) Commercial/ Facilities Industrial/ Resources Public Works/Utilities 30 | © 2021 Bentley Systems, Incorporated

  31. Slide 31: Revenues by Infrastructure Lifecycle

    Revenues by Infrastructure Lifecycle  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCHRO  OpenFlows  OpenUtilities  S

  32. Slide 32: Revenues by Infrastructure Lifecycle (Public Works / Utilities Products)

    Revenues by Infrastructure Lifecycle (Public Works / Utilities Products)  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYN

  33. Slide 33: Revenues by Infrastructure Lifecycle—(20Q4)

    Revenues by Infrastructure Lifecycle—(20Q4) 33 | © 2021 Bentley Systems, Incorporated

  34. Slide 34: Revenues by Infrastructure Lifecycle (2020 New Business Growth Leaders)

    Revenues by Infrastructure Lifecycle (2020 New Busines Growth Leaders)  AssetWise ALIM  AssetWise 4D Analytics  MicroStation  AssetWise Asset Reliability  AssetWise Linear Analytics  OpenPlant  SUPERLOAD  OpenBuildings  OpenRoads  ProjectWise  OpenRail  ProjectWise 365  OpenSite  SYNCH

  35. Slide 35: New Business Growth…

    New Business Growth… Chart Title $800 New Business $700 $600 $500 $400 $300 $200 New Account $100 Incremental Product Incumbent Product $0 Recurring Revenue 2016 2017 2018 2019 Note: Excludes the impact of changes in foreign currency exchange rates. The company’s 2019 budget exchange rates have been

  36. Slide 36: New Business Growth: 2020 Application Mix Accretion

    New Business Growth: 2020 Application Mix Accretion e.g. MicroStation ($) to OpenRoads ($$) “upsell” New Account Incremental Product Incumbent Product Note: Excludes the impact of changes in foreign currency exchange rates. The company’s 2019 budget exchange rates have been a pplied for all perio

  37. Slide 37: New Business Growth (Weighted)

    New Business Growth (Weighted) PD/ANP/iTwin All Other Revenue Type/Component Revenue Assigned Brands Brands Perpetual License SELECT Re-Instatement Fees Included as Bentley License Sales 0.50X 0.50X NET USD Revenue Project Subscription PROJECT SERVICES Included as Bentley PS TRAINING 0.375X 0.375X N

  38. Slide 38: Comprehensiveness Across Geographies

    Comprehensiveness Across Geographies Countries where BSY Office BSY’s solutions are in use 170+ Countries of Usage 90+ Offices ~4,000 Colleagues Note: $ Amounts are revenues in millions, based on 2019 ASC 606. 38 | © 2021 Bentley Systems, Incorporated

  39. Slide 39: Comprehensiveness Across Geographies: 2020 New Business Growth

    Comprehensiveness Across Geographies: 2020 New Business Growth Note: $ Amounts are revenues in millions, based on 2019 ASC 606. 39 | © 2021 Bentley Systems, Incorporated

  40. Slide 40: Comprehensiveness Across Geographies: 2020 New Business Growth

    Comprehensiveness Across Geographies: 2020 New Business Growth Note: $ Amounts are revenues in millions, based on 2019 ASC 606. 40 | © 2021 Bentley Systems, Incorporated

  41. Slide 41: New Business Growth

    New Business Growth 2019 2020 2020 Actual Budget Actual 41 | © 2021 Bentley Systems, Incorporated

  42. Slide 42: Revenues by Commercial Model

    Revenues by Commercial Model Perpetual License Sales Professional Services (episodic) Professional Services (recurring) Term Licenses Enterprise Subscriptions SELECT ELS Subscriptions E365 • for perpetual licenses • entitles license pooling • entitles “portfolio balancing” Note: Chart segment sizing

  43. Slide 43: Revenues by Commercial Model: 2020 Improvement in Percentage Recurring

    Revenues by Commercial Model: 2020 Improvement in Percentage Recurring Perpetual License Sales Professional Services (episodic) Professional Services (recurring) Note: Chart segment sizing corresponds to underlying % of 2019 ASC 606 Revenue. 43 | © 2021 Bentley Systems, Incorporated

  44. Slide 44: Entering 2021…

    Entering 2021… Greg Bentley, CEO 44 | © 2021 Bentley Systems, Incorporated

  45. Slide 45: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Success programs to accelerate accretion • Direct (digital) engagement for SMB expansion • Digital Twin mainstreaming • Programmatic and opportunistic acquisitions 45 | © 2021 Bentley Systems, Incorporated

  46. Slide 46: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Success programs to accelerate accretion • Direct (digital) engagement for SMB expansion • Digital Twin mainstreaming • Programmatic and opportunistic acquisitions 46 | © 2021 Bentley Systems, Incorporated

  47. Slide 47: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Success programs to accelerate accretion • Direct (digital) engagement for SMB expansion • Digital Twin mainstreaming • Programmatic and opportunistic acquisitions 47 | © 2021 Bentley Systems, Incorporated

  48. Slide 48: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Success programs to accelerate accretion • Direct (digital) engagement for SMB expansion • Digital Twin mainstreaming • Programmatic and opportunistic acquisitions 48 | © 2021 Bentley Systems, Incorporated

  49. Slide 49: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Success programs to accelerate accretion • Direct (digital) engagement for SMB expansion • Digital Twin mainstreaming • Programmatic and opportunistic acquisitions 49 | © 2021 Bentley Systems, Incorporated

  50. Slide 50: Going Digital—2020s Growth Initiatives

    Going Digital— 2020s Growth Initiatives… • Success programs to accelerate accretion • Direct (digital) engagement for SMB expansion • Digital Twin mainstreaming • Programmatic and opportunistic acquisitions 50 | © 2021 Bentley Systems, Incorporated

  51. Slide 51: Exiting 2020 and Entering 2021…

    Exiting 2020 and Entering 2021… David Hollister, CFO 51 | © 2021 Bentley Systems, Incorporated

  52. Slide 52: Revenue Performance

    Revenue Performance Fourth Quarter Full Year $ in millions $ in millions $801.5 +8.8% $736.7 64.9 -5.5% 68.7 57.4 -3.9% 59.7 $219.6 +8.2% $202.9 679.3 +11.7% 19.9 +7.7% 18.5 21.4 608.3 21.4 163.0 178.3 +9.4% 2019 2020 2019 2020 Subscriptions Licenses Services Subscriptions Licenses Services 52 | © 2

  53. Slide 53: Recurring Revenue Performance

    Recurring Revenue Performance ARR: 8% 2020 constant currency growth $752.7 million at 12/31/2020 spot Recurring Revenues1 Recurring Revenue Retention $ in millions 108% 107% 108% 105% $696.7 +10.4% 10.0 10.0 7.0 9.0 $631.1 98% 98% 98% 98% LTM Q419 LTM Q420 2017 2018 2019 2020 Account Retention (Doll

  54. Slide 54: Profitability Performance

    Profitability Performance GAAP Operating Income Adjusted EBITDA4 $ in millions $ in millions $150.2 $141.9 $266.2 +41% $188.1 $54.3 $42.7 $77.1 $56.0 +38% Q419 Q420 FY 2019 FY 2020 Q419 Q420 FY 2019 FY 2020 Footnotes: 4 – See appendix for KPI and non-GAAP definitions and reconciliations 54 | © 2021

  55. Slide 55: Adjusted EBITDA and margin normalization

    Adjusted EBITDA4 and margin5 normalization $ in millions $285 to $295 31.8% 33.2% to 30.9% 32.1% 29.6% 25.5% 2019 SBC v. Cash6 2019 2020 SBC v. Cash6 Normalize 2020 2021 Exec. Comp. Normalized Exec. Comp. Expenses Normalized Guidance Footnotes: 4, 5, 6 – See appendix for non-GAAP definitions and rec

  56. Slide 56: 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 •

  57. Slide 57: Liquidity and Capital Structure

    Liquidity and Capital Structure GAAP Operating Cash Flows January 2021 Financing Transactions Fourth Quarter Full Year • $850 million Senior Secured Revolver due 2025 $ in millions • Refinanced existing revolver; $3.7 million fees 258.3 +51% • Retained $200 million swap paying fixed .73% 170.8 • $69

  58. Slide 58: 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

  59. Slide 59: Q&A

    Q&A 59 | © 2021 Bentley Systems, Incorporated

  60. Slide 60: Thank You

    Thank You 60 | © 2021 Bentley Systems, Incorporated

Bentley Systems — Q4 2020 Earnings Presentation on 6ix