Bentley Systems, Incorporated · NASDAQ:BSY

Bentley Systems — FY2024 Earnings Presentation

49 slides from Bentley Systems's earnings presentation, Feb 26, 2025

  1. Slide 1: Bentley Systems Fourth Quarter and Full Year 2024 Results and 2025 Financial Outlook

    Bentley Systems Fourth Quarter and Full Year 2024 Results and 2025 Financial Outlook February 26, 2025 © 2025 Bentley Systems, Incorporated. 1

  2. Slide 2: Agenda

    01 Perspectives from the Executive Chair 02 Perspectives from the CEO 03 Perspectives from the CFO 04 Q&A © 2025 Bentley Systems, Incorporated. 2

  3. Slide 3: 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

  4. Slide 4: Perspectives from the Executive Chair, Greg Bentley

    01 Perspectives from the Executive Chair, Greg Bentley © 2025 Bentley Systems, Incorporated. 4

  5. Slide 5: BSY Investment Virtues

    BSY Investment Virtues… A “Classic Compounder” The entrenched leading provider of infrastructure engineering software globally Founder-led company with a strong management bench and well-choreographed succession Large direct recurring revenue base, low revenue concentration, and long-term account re

  6. Slide 6: Compounding: share count management

    Compounding: share count management (Millions) 400 350 300 250 200 150 CAGR of 2.8% 100 in total share count as a proxy for 50 growth in our capitalization 0 2020 2021 2022 2023 2024 Bentley family yearend Bentley family, DCP yearend Other outstanding and dilutive shares, weighted (except for conver

  7. Slide 7: Compounding: revenues

    Compounding: revenues (in constant currency)* ($ millions) 1,400 1,200 1,000 800 600 400 Constant-currency revenues 200 CAGR of 14.5% 0 2020 2021 2022 2023 2024 Constant-currency revenues Reported revenues Footnote*: Constant currency1 calculated using our disclosed constant currency growth rates in

  8. Slide 8: Compounding: revenues

    Compounding: revenues (in constant currency)* ($ millions) 1,400 Level of subscription 1,200 revenues to double over 90% these five 1,000 years since 88% 2020 800 87% 84% 600 Subscription 85% revenue in 400 constant currency 200 CAGR of 16.3%. 0 2020 2021 2022 2023 2024 2025 Subscriptions Licenses P

  9. Slide 9: Compounding: ARR

    6 Compounding: ARR ($ millions) 1,400 1,200 ARR in constant 1,000 currency CAGR of 16.3%. 800 Same as for constant-currency subscription revenue 600 ARR in constant 400 currency ex-China and ex-onboarded 200 acquisitions CAGR of 13.6%. 0 2020 2021 2022 2023 2024 ARR excluding China, and excluding AR

  10. Slide 10: Compounding: ARR

    6 Compounding: ARR ($ millions) 1,400 Level of ARR at the end of 2025 to double over 1,200 these five years since 2020 1,000 800 600 400 200 0 2020 2021 2022 2023 2024 2025 ARR excluding China, and excluding ARR onboarded with platform acquisitions and programmatic acquisitions China Onboarded with

  11. Slide 11: Compounding: profitability

    Compounding: profitability ($ millions) 500 450 Level for profitability in 400 2025 to double over these five 350 years since 2020 300 250 200 Adjusted OI w/SBC and 150 less covid 100 windfall CAGR 50 of 20.4%. 0 2020 2021 2022 2023 2024 2025 Adjusted OI w/SBC and less covid windfall Stock-based com

  12. Slide 12: Compounding: FREE cash flow

    Compounding: FREE cash flow 13 ($ millions) 500 450 Level of FCF 400 (net of SBC) in 2025 to double 350 over these five years since 2020 300 250 200 FCF generation, 150 net of SBC 100 CAGR of 18.5%. 50 0 2020 2021 2022 2023 2024 2025 Free cash flow less SBC and covid windfall Stock-based compensatio

  13. Slide 13: Compounding: FREE cash flow

    Compounding: FREE cash flow 13 Dividends ($ millions) 500 450 400 350 300 250 200 150 Proportions of annual Free cash 100 flow (net of SBC) allocated to 50 dividends 0 2020 2021 2022 2023 2024 Free cash flow less SBC and covid windfall Stock-based compensation Covid windfall Dividends Footnote 13: S

  14. Slide 14: Perspectives from the CEO, Nicholas Cumins

    02 Perspectives from the CEO, Nicholas Cumins © 2025 Bentley Systems, Incorporated. 14

  15. Slide 15: YoY ARR growth

    YoY ARR growth 8 Strong and consistent growth Constant Currency Business Performance (%) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 - 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 Our constant currency ARR growth rate from business performance excludes the

  16. Slide 16: ARR by account size

    ARR by account size 6 E365 and SMB new logos remain major growth drivers E365 SMB E365 Prospects Note: Chart segment sizing corresponds to underlying % of 24Q4 ARR Footnote 6: See appendix for KPI and non-GAAP definitions © 2025 Bentley Systems, Incorporated. 16

  17. Slide 17: Virtuosity ARR

    6 Virtuosity ARR Twelfth straight quarter of at least 600 new logos ($ in millions) 70 60 50 40 30 20 10 0 23Q1 23Q2 23Q3 23Q4 20Q2 20Q3 20Q4 22Q1 22Q2 22Q3 22Q4 21Q1 21Q2 21Q3 21Q4 24Q1 24Q2 24Q3 24Q4 Note: All periods use exchange rates as of December 31, 2024 Footnote 6: See appendix for KPI and

  18. Slide 18: Tone of business by infrastructure sector

    Tone of business by infrastructure sector Consistent trends with previous quarters Commercial/Facilities Industrial Public Works/Utilities 24Q4 ARR6 Resources Resources Note: Chart segment sizing corresponds to underlying % of 24Q4 Sector-attributable ARR6 Footnote 6: See appendix for KPI and non-GA

  19. Slide 19: Developments across geographic regions

    Developments across geographic regions Americas EMEA Asia Pacific Strong growth Stand out quarter Strong growth • Consistent trends within North • Strength across most of Europe • India and Southeast Asia leading America and Latin America • Middle East continues to be a the region once again • Engin

  20. Slide 20: Notable product developments

    Notable product developments Bentley Infrastructure Cloud Connecting data and people across the lifecycle Bentley Open Applications Bentley Asset Analytics Creating and optimizing engineering designs Project Delivery Asset Performance Optimizing asset reliability and resilience Seequent ® Modeling a

  21. Slide 21: State of the AEC industry 2024 report

    State of the AEC industry 2024 report Digital transformation survey participants: 95 AEC firms, totaling ~$34 billions in gross revenue1 1 2023 Gross Revenue figures © 2025 Bentley Systems, Incorporated. 21

  22. Slide 22: Top objectives today

    Top objectives today %’s = number of times objective is ranked 1, 2 ,3 or outside top 3, sorted by average score from highest to lowest Highest score Average score1 Lowest score Scale: 1-8 6.5 5.9 5.7 5.6 4.8 4.1 2.2 3% 5% 1% #1 top 15% objective 19% 13% 8% 29% 27% 5% 11% 20% # 2 top 25% 13% objecti

  23. Slide 23: Most important: digital technology

    Most important: digital technology %’s = number of times objective is ranked 1, 2 ,3 or outside top 3, sorted by average score from highest to lowest Highest score Average score1 Lowest score Scale: 1-6 5.1 4.8 3.5 2.9 2.7 4% 5% 3% #1 Top 8% 10% Objective 21% 38% 15% 47% 17% # 2 Top Objective 31% 27

  24. Slide 24: Digital investment currently underway

    Digital investment currently underway All firms 20% 9% 9% 3% 3% 13% 10% 20% 13% >$500 mil 14% 9% 11% 6% 1% 14% 10% 14% 21% $100 - 500 mil 19% 10% 12% 1% 3% 15% 11% 15% 14% $25 - 100 mil 17% 13% 13% 6% 1% 15% 13% 11% 11% <$25 mil 17% 10% 12% 4% 2% 14% 11% 14% 16% Allocating R&D funding for digital tr

  25. Slide 25: Digital investment currently underway

    Digital investment currently underway All firms 20% 20% 13% 13% 10% 9% 9% 3% 3% Allocating Compiling Establishing Allocating R&D Developing Capitalizing Marketing Acquisitions Minority R&D funding datasets for internal digital UAV (drone) proprietary intellectual for digital of digital investments i

  26. Slide 26: Top objectives in three years

    Top objectives in three years %’s = number of times objective is ranked 1, 2 ,3 or outside top 3, sorted by average score from highest to lowest Highest score Average score1 Lowest score Scale: 1-8 6.5 5.9 5.5 5.4 4.7 4.6 2.3 6% 3% 3% #1 top 8% 15% 9% objective 22% 9% 23% 19% 45% 20% 15% # 2 top 22%

  27. Slide 27: Future trends and strategy

    Future trends and strategy %’s = number of times objective is ranked 1, 2 ,3 or outside top 3, sorted by average score from highest to lowest | % of respondents Highest score Average score1 Lowest score Scale: 1-6 5.1 4.8 3.5 2.7 #1 Top 9% Objective 22% 31% 38% 26% # 2 Top Objective 36% 22% Where do

  28. Slide 28: Bentley Systems welcomes James Lee as Chief Operating Officer

    Bentley Systems EXTON, Pa., January 13, 2025 – Bentley Systems, Incorporated welcomes James Lee as (Nasdaq: BSY), the infrastructure engineering software company, today announced the appointment of James Lee as Chief Operating Officer Chief Operating Officer. Lee joins Bentley from Google, where he

  29. Slide 29: Bentley Systems welcomes James Lee as Chief Operating Officer

    Bentley Systems EXTON, Pa., January 13, 2025 – Bentley Systems, Incorporated welcomes James Lee as (Nasdaq: BSY), the infrastructure engineering software company, today announced the appointment of James Lee as Chief Operating Officer Chief Operating Officer. … Also consolidating product development

  30. Slide 30: Perspectives from the CFO, Werner Andre

    03 Perspectives from the CFO, Werner Andre © 2025 Bentley Systems, Incorporated. 30

  31. Slide 31: Revenue performance

    Revenue performance Fourth quarter Full year $ in millions $ in millions CC constant currency1 CC constant currency1 $1,353 +10% (CC +10%) $1,228 84 -18% (CC -18%) 46 0% (CC +1%) 102 46 $350 +13% (CC +13%) $311 20 -21% (CC -21%) 14 +11% (CC +12%) 1,223 +13% (CC +13%) 25 13 1,080 316 +16% (CC +16%) 2

  32. Slide 32: Recurring revenue performance

    Recurring revenue performance LTM recurring revenues3 LTM recurring revenue retention $ in millions $ in millions CC constant currency1 Constant currency1, YoY 108% 107% 109% 110% 109% 108% 108% 109% 110% $1,238 $1,097 +13% (CC +13%) Axis Title 98% 98% 98% 98% 98% 99% 99% 99% 99% LTM 23Q4 LTM 24Q4 2

  33. Slide 33: Recurring revenue performance

    Recurring revenue performance ARR growth7,8 ARR6: $1,283 million at 12/31/2024 spot rates $ in millions Business performance8 Constant currency1, YoY 27% 26% 26% Impact from the onboarding of platform acquisitions 23% 13% 13% 15% Seequent 21Q2 to 22Q1 and 13% 15% Power Line Systems 22Q1 to 22Q4 14%

  34. Slide 34: Profitability performance

    Profitability performance GAAP operating income Adjusted OI w/ SBC9 $ in millions $ in millions 27.5% Adj. OI w/ SBC Margin10 26.4% Adj. OI w/ SBC $372 Margin10 $325 $302 +15% $231 +31% 21.5% 24.0% Adj. OI w/ SBC Adj. OI w/ SBC Margin10 Margin10 $75 $75 $61 $38 +1% +63% 23Q4 24Q4 23Q4 YTD 24Q4 YTD 2

  35. Slide 35: Liquidity and capital structure

    Liquidity and capital structure GAAP operating cash flows 24Q4 full year capital allocation $ in millions Fourth Quarter Full year • $130 million for acquisitions $435 • $147 million in net bank debt reduction $417 +4% • $77 million in share repurchases, including $13M of de-facto share repurchases

  36. Slide 36: Liquidity and capital structure

    Liquidity and capital structure 12/31/2024 credit metrics 24Q4 senior secured credit facility refinancing $ in millions $ in millions Cash $ 64 • Refinanced credit facility in October 2024 Senior debta $ 135 • $1,300 revolving credit facility Net senior debtb $ 71 • 5 years Net senior debt leveragec

  37. Slide 37: Full year 2025 financial outlook

    Full year 2025 financial outlook Financial metrics Outlook Total Revenues $1,461 million to $1,490 milliona or $1,481 million to $1,510 million in constant currency Subscriptions Revenues +10.5% to 12.5% in constant currency Perpetual Licenses Revenues Approximately flat in constant currency Service

  38. Slide 38: Compounding: subscriptions revenues

    Compounding: subscriptions revenues (in constant currency)* ($ millions) 1,400 Outlook range +10.5% to 12.5% To double since 2020 1,200 1,000 800 600 400 200 0 2020 2021 2022 2023 2024 2025 Subscriptions revenues 2025 Subscriptions outlook Footnote*: Constant currency1 calculated using our disclosed

  39. Slide 39: Compounding: ARR

    6 Compounding: ARR Outlook range ($ millions) 1,400 +10.5% to 12.5% To double since 2020 1,200 1,000 800 600 400 200 0 2020 2021 2022 2023 2024 2025 ARR 2025 ARR outlook Footnote 6: See appendix for KPI and non-GAAP definitions © 2025 Bentley Systems, Incorporated. 39

  40. Slide 40: Compounding: profitability

    Compounding: profitability ($ millions) 500 450 Outlook To double range since 2020 400 350 To double since 2020 300 less covid windfall 250 200 150 100 50 - 2020 2021 2022 2023 2024 2025 Adjusted OI w/SBC and less covid windfall 2025 Adjusted OI w/SBC outlook © 2025 Bentley Systems, Incorporated. 40

  41. Slide 41: Compounding: FREE cash flow less SBC

    Compounding: FREE cash flow less SBC 13 ($ millions) 500 450 To double 400 since 2020 Outlook 350 range To double since 2020 less covid 300 windfall 250 200 150 100 50 - 2020 2021 2022 2023 2024 2025 Free cash flow less SBC and covid windfall outlook 2025 Free cash flow less SBC and covid windfall o

  42. Slide 42: Compounding: FREE cash flow less SBC

    Compounding: FREE cash flow less SBC 13 Dividends ($ millions) 500 450 To double 400 since 2020 Outlook 350 range To double since 2020 less covid 300 windfall 250 200 150 100 50 0 2020 2021 2022 2023 2024 2025 Free cash flow less SBC and covid windfall outlook 2025 Free cash flow less SBC and covid

  43. Slide 43: Appendix

    Appendix © 2025 Bentley Systems, Incorporated. 43

  44. Slide 44: 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 non-GAAP financial measures to their most directly comparable GAAP financial measures are included in our Form 8-K (Quarterly Earnings Release) announcin

  45. Slide 45: 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

  46. Slide 46: Adjusted EBITDA

    Adjusted EBITDA 11 Reconciliation of cash flow from operations to Adjusted EBITDA11 Last twelve months Reconciliation of cash flow from operations to adjusted EBITDA $ in millions $ in thousands LTM 24Q4 $465 Cash flow from operations $ 435,292 Cash interest 17,202 Cash taxes 57,526 Cash deferred co

  47. Slide 47: Non-GAAP reconciliations (constant currency)

    Non-GAAP reconciliations (constant currency) Reconciliation of total revenues and subscriptions revenues to total revenues and subscriptions revenues in constant currency Three months ended December 31, 2024 Three months ended December 31, 2023 Impact of foreign Impact of foreign Constant Constant A

  48. Slide 48: Historical OI to adjusted OI w/SBC

    Historical OI to adjusted OI w/SBC ($ in thousands) 2018 2019 2020 2021 2022 2023 2024 Operating income $ 121,391 $ 141,865 $ 150,150 $ 94,589 $ 208,612 $ 230,542 $ 302,150 Amortization of purchased intangibles 17,215 18,731 20,721 34,001 53,592 51,219 46,679 Deferred compensation plan (75) 408 177

  49. Slide 49: © 2025 Bentley Systems, Incorporated.

    © 2025 Bentley Systems, Incorporated. 49

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