Bentley Systems, Incorporated · NASDAQ:BSY

Bentley Systems — Q1 2024 Earnings Presentation

44 slides from Bentley Systems's earnings presentation, May 7, 2024

  1. Slide 1: 24Q1 Results

    24Q1 Results Greg Bentley, CEO, Nicholas Cumins, COO, Werner Andre, CFO May 7, 2024 | © 2024 Bentley Systems, Incorporated 1 © 2024 Bentley Systems, Incorporated |

  2. Slide 2: Disclaimer

    Disclaimer This presentation includes forward-looking statements regarding the future in which we operate; the quality of our products; our ability to develop and results of operations and financial position, business strategy, and plans and market new products to address our accounts’ rapidly chang

  3. Slide 3: Infrastructure Yearbook

    Software Industries Engineering Services Digital Twins Support Company Shop About Awards Categories Resources Gallery 2023 Infrastructure Yearbook Explore the world’s best infrastructure projects honored at the Going Digital Awards. Download FREE 2023 Yearbook Explore All Yearbooks Showcasing Infras

  4. Slide 4: We Recently Published our 2023 ESG Report

    We Recently Published our 2023 ESG Report https://investors.bentley.com/ 4 © 2024 Bentley Systems, Incorporated |

  5. Slide 5: Agenda

    Agenda Directions and Developments Greg Bentley, Chief Executive Officer Operational Perspectives Nicholas Cumins, Chief Operating Officer Financial Performance Werner Andre, Chief Financial Officer 5 © 2024 Bentley Systems, Incorporated |

  6. Slide 6: Directions and Developments

    Directions and Developments Greg Bentley, Chief Executive Officer 6 © 2024 Bentley Systems, Incorporated |

  7. Slide 7: CEO Transition

    CEO Transition Marking Its 40th Anniversary, Bentley Systems Announces CEO Transition Plan COO Nicholas Cumins To Be Promoted To CEO July 1, 2024, As Greg Bentley Will Transition To Executive Chair PRESS RELEASE March 21, 2024 https://www.bentley.com/news/bentley-systems-announces-ceo-transition-pla

  8. Slide 8: Transition to Executive Chair

    Transition to Executive Chair 56yrs the average age of incoming S&P 500 CEOs 78% of incoming CEO's had never been CEO of a public company 74% were internal promotions 41% of former CEOs becoming Executive Chair on transitions Report Courtesy of SpencerStuart This report sets out the trends revealed

  9. Slide 9: 8 Bishopsgate

    Bentley Office - 43rd 8 Bishopsgate London Office Launch, March 21 2024 Ben Bateman Lendlease Project Director The Builders of 8 Bishopsgate Graham Murphy BIM Manager Project: 910,000 sq.ft. GIA | 52 Storeys Sustainability Credentials • BREEAM Outstanding and an EPC A rating • 25% reduction in steel

  10. Slide 10: © 2024 Bentley Systems, Incorporated |

    10 © 2024 Bentley Systems, Incorporated |

  11. Slide 11: YoY ARR Growth

    YoY ARR Growth8 Constant Currency Business Performance 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Note: Annualized Recurring Revenue (“ARR”)6 Footnotes 6,8 : See appendix for KPI and non-GAAP definitions 11 ©

  12. Slide 12: YoY ARR Growth: Programmatic Acquisitions

    YoY ARR Growth8 Programmatic Acquisitions Constant Currency 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 As reported Excluding programmatic acquisitions Note: Annualized Recurring Revenue (“ARR”)6 Footnotes 6,8

  13. Slide 13: YoY ARR Growth: Organic

    YoY ARR Growth8 Organic12 Constant Currency 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Organic12 Note: Annualized Recurring Revenue (“ARR”)6 Footnotes 6,8,12: See appendix for KPI and non-GAAP definitions 13

  14. Slide 14: YoY ARR Growth: Organic and Ex-China

    YoY ARR Growth8 Organic12 Constant Currency 14% 13% 12% Organic: 11% Relative 10% Consistency 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Organic12 Organic12 Ex-China Note: Annualized Recurring Revenue (“ARR”)6 Footnotes 6,8,12:

  15. Slide 15: YoY ARR Growth: Organic Ex-China

    YoY ARR Growth8 Organic12 Ex-China Constant Currency 14% 13% 12% Organic Ex-China: 11% Relative 10% Consistency 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Organic12 Ex-China Note: Annualized Recurring Revenue (“ARR”)6 Footnotes

  16. Slide 16: YoY ARR Growth: 2024 Outlook

    YoY ARR Growth8 2024 Outlook Constant Currency Business Performance 14% 13% 12% Annual Outlook 11% 10.5% to 13.0% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Note: Annualized Recurring Revenue (“ARR”)6 Footnotes 6,8 : See app

  17. Slide 17: ARR by Account Size

    ARR6 by Account Size End of 23Q4 E365 SMB E365 Prospects Note: Chart segment sizing corresponds to underlying % of 23Q4 ARR6 Footnote 6 : See appendix for KPI and non-GAAP definitions 17 © 2024 Bentley Systems, Incorporated |

  18. Slide 18: ARR by Account Size

    ARR6 by Account Size E365 Growth Continues to Be Driven by Mix Accretion (Upsell and Cross Sell) End of 24Q1 E365 SMB E365 Prospects E365 growth during 24Q1 Note: Chart segment sizing corresponds to underlying % of 24Q1 ARR6 Footnote 6 : See appendix for KPI and non-GAAP definitions 18 © 2024 Bentle

  19. Slide 19: YoY LTM Recurring Revenues Dollar-Based Net Retention Rate

    YoY LTM Recurring Revenues Dollar-Based Net Retention Rate5 (NRR) Constant Currency Business Performance 111% 110% 109% 108% 107% 106% 105% 104% 103% 102% 101% 100% 20Q1 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Footnote 5: See appendix for KPI and non-GAAP defi

  20. Slide 20: (Daily) Consumption-based ARR

    (Daily) Consumption-based ARR6 Floor Resets ARR6 End 2022 35% Total ARR6 ARR6 End 2023 41% Total ARR6 Note: Annualized Recurring Revenue (“ARR”)6 measured in Constant Currency at budget rate 20 © 2024 Bentley Systems, Incorporated |

  21. Slide 21: ARR by Account Size

    ARR6 by Account Size Fifth straight quarters SMB new logos accounted for 300 bps of ARR growth E365 SMB New logos contribute 4% to ARR growth! E365 Prospects Note: Chart segment sizing corresponds to underlying % of 24Q1 ARR6 Footnote 6 : See appendix for KPI and non-GAAP definitions 21 © 2024 Bentl

  22. Slide 22: Virtuosity ARR

    Virtuosity ARR 6 Eight Straight Quarters of Over 600 New Logos $50M $45M $40M $35M $30M $25M $20M $15M $10M $5M $- 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 23Q3 23Q4 24Q1 Notes: All periods use exchange rates as of March 31, 2024 Footnotes 6 : See appendix for KPI and non-GAA

  23. Slide 23: Blyncsy to Release Map of U.S. 35+ MPH Roadway System

    Blyncsy to Release Map of U.S. 35+ MPH Roadway System featuring FHWA Retroreflectivity Minimum Standards PRESS RELEASE May 7, 2024 www.bentley.com/newsroom 23 © 2024 Bentley Systems, Incorporated |

  24. Slide 24: Operational Perspectives

    Operational Perspectives Nicholas Cumins, Chief Operating Officer 24 © 2024 Bentley Systems, Incorporated |

  25. Slide 25: Higher Backlog 12 Months from Now

    Higher Backlog 12 Months from Now Net Rating Trend +40 +37 +37 +32 +27 23Q1 23Q2 23Q3 23Q4 24Q1 Source: ACEC Research Institute Engineering Business Sentiment © | 2024 Q1- https://programs.acec.org/impact-report-21/ 25 © 2024 Bentley Systems, Incorporated |

  26. Slide 26: Economic Sentiment 12 Months from Now vs. Previous Quarters

    Economic Sentiment 12 Months from Now vs. Previous Quarters Condition of the Condition of the engineering Condition of your firm’s U.S. Economy and design services industry overall finances 50 43 48 40 40 33 35 30 30 25 19 20 13 16 9 10 0 23Q1 23Q2 23Q3 23Q4 24Q1 23Q1 23Q2 23Q3 23Q4 24Q1 -10 -2 -20

  27. Slide 27: Artificial Intelligence and Decarbonization

    The world’s infrastructure leaders collaborating to address the key challenges facing the industry Artificial intelligence . Decarbonization https://lnkd.in/eWtVhWGF 27 © 2024 Bentley Systems, Incorporated | Images courtesy of FIDIC

  28. Slide 28: Tone of Business by Infrastructure Sector

    Tone of Business by Infrastructure Sector Growth in Public Works/Utilities Continues to Lead the Way Commercial/Facilities Industrial Public Works/ Utilities 24Q1 ARR6 Resources Resources Note: Chart segment sizing corresponds to underlying % of 24Q1 Sector-attributable ARR6 Footnote 6 : See appendi

  29. Slide 29: Notable Q1 Developments Across Geographies

    Notable Q1 Developments Across Geographies Balanced Performance Across the Board Americas EMEA Asia Pacific Solid growth Solid growth Steady growth • North America steady performance • Resources and Public Works • India once again main growth driver lead the growth • Momentum with US DOTs • Momentum

  30. Slide 30: Bentley Infrastructure Cloud

    Bentley Infrastructure Cloud Powering Infrastructure Delivery and Performance Project Delivery ProjectWise SYNCHRO 4D Construction Infrastructure Digital Twins AssetWise Asset Performance 30 © 2024 Bentley Systems, Incorporated |

  31. Slide 31: EchoWater Project

    EchoWater Project Location: Sacramento, California, United States Project Playbook: iTwin, LumenRT, OpenRoads, SYNCHRO Image/Video Credit: Project Controls Cubed LLC https://lnkd.in/e-5C5rNT 31 Image courtesy of Sacramento Regional © 2024 Bentley County Systems, | District Sanitation Incorporated

  32. Slide 32: Financial Performance

    Financial Performance Werner Andre, Chief Financial Officer 32 © 2024 Bentley Systems, Incorporated |

  33. Slide 33: Revenue Performance

    Revenue Performance First Quarter Full Year (As Presented at our 23Q4 Results Call) $ in millions $ in millions CC constant currency1 CC constant currency1 $1,350 - $1,375 +10% to +12% $1,228 (CC +10% to +12%) 102 46 $338 +7% (CC +7%) $314 -22% (CC -22 %) 21 27 10 0% (CC +1%) 10 1,080 1,350 307 +11%

  34. Slide 34: Recurring Revenue Performance

    Recurring Revenue Performance LTM Recurring Revenues3 LTM Recurring Revenue Retention $ in millions Constant Currency1, YoY CC constant currency1 108% 109% 110% 109% 109% 108% 107% $1,126 10.0 9.0 11.0 12.0 11.0 9.0 $1,014 +11% (CC +10%) 98% 98% 99% 98% 98% 98% 99% LTM 23Q1 LTM 24Q1 2019 2020 2021 2

  35. Slide 35: Recurring Revenue Performance

    Recurring Revenue Performance ARR Growth7,8 ARR6: $1,186 million at 03/31/2024 Spot Rates 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% 15% Power Line Systems 14% 14% 22Q1 to 22Q4 2.5% 2.5%

  36. Slide 36: Profitability Performance

    Profitability Performance GAAP Operating Income Adjusted OI w/ SBC9 $ in millions $ in millions 33.3% Adj. OI w/ SBC Margin10 28.8% $112 Adj. OI w/ SBC $92 Margin10 $90 +24% $66 +40% 23Q1 24Q1 23Q1 24Q1 Footnote 9,10: See appendix for KPI and non-GAAP definitions 36 © 2024 Bentley Systems, Incorpora

  37. Slide 37: Liquidity and Capital Structure

    Liquidity and Capital Structure GAAP Operating Cash Flows 24Q1 Credit Metrics $ in millions $ in millions First Quarter Last Twelve Months Cash $ 142 $445 Senior Debta $ 188 Net Senior Debtb $ 46 $349 +28% Net Senior Debt Leveragec 0.1x Available Revolver Credit Capacity $ 850 $205 $176 • Senior deb

  38. Slide 38: Full Year 2024 Financial Outlook

    Full Year 2024 Financial Outlook Financial Metrics Outlook Total Revenues $1,350 million to $1,375 milliona (+10% to 12% in constant currencya) ARR Growth8 (constant currency1) 10.5% to 13%b Adjusted OI w/SBC Margin10 Approximately 100bps annual improvement Effective Tax Rate Approximately 20% Cash

  39. Slide 39: Q&A

    Q&A Live Session Monitored by Eric Boyer, Investor Relations Officer 39 © 2024 Bentley Systems, Incorporated |

  40. Slide 40: Appendix

    Appendix 40 © 2024 Bentley Systems, Incorporated |

  41. Slide 41: 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

  42. Slide 42: 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

  43. Slide 43: Adjusted EBITDA

    Adjusted EBITDA11 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 24Q1 $445 Cash flow from operations $ 445,442 Cash interest 32,173 Cash taxes 47,941 Cash deferred com

  44. Slide 44: 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 $ in thousands Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Impact of Foreign Impact of Foreign Constant C

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