NASDAQ$BSY

Bentley Systems, Incorporated · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Bentley Systems' Q4 2022 operating results met expectations, driven by strong operating momentum and growth initiatives, despite challenges in Russia and China.

Bentley Systems reported Q4 2022 total revenues of $286.9 million, up 7.2% year-over-year, and ARR of $1,036.5 million, representing a 15% constant currency ARR growth rate. The company's adjusted EPS was $0.19, compared to $0.22 for the same period last year.

  • Total revenues increased by 7.2% year-over-year to $286.9 million.
  • ARR reached $1,036.5 million, with a constant currency ARR growth rate of 15%.
  • The last twelve-month recurring revenues dollar-based net retention rate was 110%.
  • Adjusted EPS was $0.19, compared to $0.22 for the same period last year.

Headline financials

Total Revenue

$287M

Previous: $268M+7.2%
EPS (adj)

$0.19

Previous: $0.23-17.4%
Annualized Recurring Revenue

$1.04B

Previous: $921M+12.5%
Constant currency ARR growth

15.0%

Previous: 26.0%-42.3%
Net retention rate

110.0%

Previous: 109.0%+0.9%
Capital Expenditures

$5.56M

Previous: $6.39M-12.9%
Free Cash Flow

$30.6M

Previous: $74.2M-58.8%
Net Income

$25.7M

Previous: $38.6M-33.4%
Operating Income

$40.8M

Previous: $43.3M-5.7%
Gross Profit

$225M

Previous: $208M+7.9%
Cash & Equivalents

$71.7M

Previous: $329M-78.2%
Total Assets

$3.17B

Previous: $2.66B+19.0%
Stock-Based Comp

$23.8M

Previous: $16.2M+47.3%

Revenue & EPS history

Bentley Systems · Revenue · Quarterly

$287M

Q4 2022+7.2%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Bentley Systems · $35.5M total across 2 segments · Q4 2022

  • Services
    $23.3M-6.5%
  • Perpetual Licenses
    $12.2M-38.3%

Forward guidance

The Company is sharing the following financial outlook for the full year 2023:

Tailwinds

  • Total revenues in the range of $1,205 million to $1,235 million, representing growth of approximately 9.5% to 12.5% (10.5% to 13.5% in constant currency);
  • Constant currency ARR growth rate (business performance) of 11.5% to 13.5%;
  • Adjusted OI w/SBC margin of approximately 26%;
  • Effective tax rate of approximately 20%;
  • Cash flow from operations representing a conversion rate from Adjusted EBITDA of approximately 80%;

Headwinds

  • The 2023 outlook is forward-looking, subject to significant business, economic, regulatory, and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and based upon assumptions with respect to future decisions, which are subject to change.
  • Actual results may vary and those variations may be material.
  • Our results may not fall within the ranges contained in this outlook.
  • The Company is unable to reconcile these forward-looking non-GAAP measures to GAAP without unreasonable efforts because it is not possible to predict with a reasonable degree of certainty the actual impact of certain items and unanticipated events, including stock‑based compensation charges, depreciation and amortization of acquired intangible assets, realignment expenses, and other items, which would be included in GAAP results.
  • The impact of such items and unanticipated events could be potentially significant.

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 Q4 2022

Historical avgQ4 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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