NASDAQ$BSY

Bentley Systems, Incorporated · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Bentley Systems' operating results announced for the third quarter of 2022, demonstrating growth in revenues and ARR.

Bentley Systems reported a 6.7% increase in total revenues, reaching $268.3 million. The company's ARR grew to $983.7 million, with a constant currency ARR growth rate of 14%. GAAP net income improved to $37.0 million, a significant turnaround from the previous year's net loss.

  • Total revenues increased by 6.7% year-over-year, reaching $268.3 million.
  • ARR reached $983.7 million, representing a 14% constant currency growth rate.
  • GAAP net income was $37.0 million, a significant improvement from the net loss in the same period last year.
  • The last twelve-month recurring revenues dollar-based net retention rate was 110%.

Headline financials

Total Revenue

$268M

Previous: $248M+8.0%
EPS (adj)

$0.19

Previous: $0.17+11.8%
Annualized Recurring Revenue

$984M

Previous: $904M+8.8%
Constant currency ARR growth

14.0%

Previous: 26.0%-46.2%
Net retention rate

110.0%

Previous: 106.0%+3.8%
Capital Expenditures

-$13M

Previous: -$11.2M-16.4%
Free Cash Flow

$24M

Previous: -$61.3M+139.2%
Net Income

$37M

Previous: -$50.1M+173.8%
Operating Income

$55.5M

Previous: -$40.4M+237.3%
Gross Profit

$209M

Previous: $194M+7.7%
Cash & Equivalents

$72.9M

Previous: $156M-53.2%
Total Assets

$3.04B

Previous: $2.45B+23.9%
Stock-Based Comp

$18.8M

Previous: $12.3M+53.3%

Revenue & EPS history

Bentley Systems · Revenue · Quarterly

$268M

Q3 2022+8%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Bentley Systems · $33M total across 2 segments · Q3 2022

  • Services
    $23.6M
  • Perpetual Licenses
    $9.46M

Forward guidance

Bentley Systems reaffirmed its full-year 2022 financial outlook in constant currency metrics, including total revenues growth of 16.9% to 20.1% and constant currency ARR growth rate of 14% to 16%.

Tailwinds

  • Total revenues growth of 16.9% to 20.1% in constant currency is expected.
  • Constant currency ARR growth rate of 14% to 16% is anticipated.
  • New business is accelerating noticeably in the U.S.
  • Civil engineering organizations are growing globally.
  • Enterprise success teams are increasing ARR accretion within the E365 program.

Headwinds

  • Reported revenues are subject to foreign exchange fluctuations.
  • The ongoing impact of volatile exchange rates will negatively impact full year total revenues.
  • Full year outlook for 2022 adjusted EBITDA margin of 33% may be affected by exchange rates.
  • Losses from Russia are affecting the outlook.
  • Circumstantially fewer programmatic acquisitions during 2022 to date.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.5%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

16 / 29 earnings

Positive

+14.2%

Q4 2025

Best reaction

-23.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.8%+1.8%+2.6%
Q4 2025+14.2%+19.3%+7.0%
Q3 2025-1.0%-5.4%-11.8%
Q1 2025+5.6%+9.0%+13.7%
Q4 2024-2.3%-6.2%-13.1%
Q3 2024-2.7%-1.1%-0.4%
Q2 2024+4.6%+8.0%+8.6%
Q1 2024+1.5%+3.6%-5.9%
Q4 2023-3.2%-2.5%-0.5%
Q3 2023+7.0%+8.1%+5.5%
Q2 2023-6.2%-8.4%-2.5%
Q1 2023+9.1%+7.1%+19.0%
Q4 2022+1.7%+8.3%+7.8%
Q3 2022+1.7%+14.4%+16.3%
Q2 2022+1.1%+1.1%-6.0%
Q1 2022-23.4%-11.3%-5.4%
Q4 2021+6.1%-0.9%+15.1%
Q3 2021-5.5%-5.9%-21.3%
Q2 2021-3.6%-1.2%+6.6%
Q1 2021+8.1%+9.5%+39.6%
Q1 2020+8.1%+9.5%+39.6%
Q4 2020+3.8%+6.0%+7.7%
Q2 2020+3.8%+6.0%+7.7%
Q4 2018+3.8%+6.0%+7.7%
Q3 2019-10.2%-12.5%-4.2%
Q2 2019-10.2%-12.5%-4.2%
Q3 2020-10.2%-12.5%-4.2%
Q4 2019-10.2%-12.5%-4.2%
Q1 2019-10.2%-12.5%-4.2%

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