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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________

FORM 10-Q
___________________________________

(Mark One)
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to

Commission File Number: 001-39548
___________________________________

BENTLEY SYSTEMS, INCORPORATED
(Exact name of registrant as specified in its charter)
___________________________________
Delaware
95-3936623
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
685 Stockton Drive
Exton, Pennsylvania
19341
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (610) 458-5000
___________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of each exchange on which registered
Class B Common Stock, $0.01 Par ValueBSY
The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S‑T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.
Large accelerated filer ☒
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐  No ☒

As of October 31, 2024, the registrant had 11,537,627 shares of Class A and 290,712,297 shares of Class B common stock outstanding.


BENTLEY SYSTEMS, INCORPORATED
FORM 10-Q
TABLE OF CONTENTS

2

EXPLANATORY NOTE
This Quarterly Report on Form 10‑Q is for the three and nine months ended September 30, 2024. This Quarterly Report on Form 10‑Q modifies and supersedes documents filed before it. The United States (“U.S.”) Securities and Exchange Commission (“SEC”) allows us to “incorporate by reference” information that we file with it, which means that we can disclose important information to you by referring you directly to those documents. Information incorporated by reference is considered to be part of this Quarterly Report on Form 10‑Q. In addition, information that we file with the SEC in the future will automatically update and supersede information contained in this Quarterly Report on Form 10‑Q.
Unless indicated otherwise, throughout this Quarterly Report on Form 10‑Q, we refer to Bentley Systems, Incorporated and its consolidated subsidiaries, as “Bentley Systems,” “Bentley,” the “Company,” “we,” “us,” and “our.”
This Quarterly Report on Form 10‑Q contains trademarks, service marks, brands, or product names owned by us, as well as those owned by others.
Numerical information in this report is presented on a rounded basis using actual amounts. Minor differences in totals and percentage calculations may exist due to rounding.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10‑Q includes forward‑looking statements. All statements contained in this Quarterly Report on Form 10‑Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy, and plans and our objectives for future operations, are forward‑looking statements. The words “believe,” “may,” “will,” “could,” “would,” “seeks,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions, as well as statements regarding our focus for the future, are intended to identify forward‑looking statements. We have based these forward‑looking statements largely on our current expectations, projections, and assumptions about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short‑term and long‑term business operations and objectives, and financial needs. These forward‑looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in the section titled “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward‑looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Quarterly Report on Form 10‑Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward‑looking statements. The forward‑looking statements, as well as our Quarterly Report on Form 10‑Q as a whole, are subject to risks and uncertainties.
These statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from those anticipated by the forward‑looking statements. We discuss many of these risks in this Quarterly Report on Form 10‑Q in greater detail in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10‑Q. You should not rely upon forward‑looking statements as predictions of future events.
Although we believe that the expectations reflected in the forward‑looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, events, or circumstances reflected in the forward‑looking statements will occur. Except as required by law, we undertake no obligation to update any of these forward‑looking statements after the date of this Quarterly Report on Form 10‑Q to conform these statements to actual results or revised expectations.
3


PART I. FINANCIAL INFORMATION
Item 1. Unaudited Consolidated Financial Statements
BENTLEY SYSTEMS, INCORPORATED
Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)

September 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$72,175 $68,412 
Accounts receivable271,689 302,501 
Allowance for doubtful accounts(8,846)(8,965)
Prepaid income taxes15,846 12,812 
Prepaid and other current assets52,955 44,797 
Total current assets403,819 419,557 
Property and equipment, net34,533 40,100 
Operating lease right-of-use assets36,425 38,476 
Intangible assets, net225,788 248,787 
Goodwill2,390,392 2,269,336 
Investments24,724 23,480 
Deferred income taxes207,821 212,831 
Other assets72,985 67,283 
Total assets$3,396,487 $3,319,850 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$30,514 $18,094 
Accruals and other current liabilities494,911 457,348 
Deferred revenues225,291 253,785 
Operating lease liabilities12,079 11,645 
Income taxes payable19,434 9,491 
Current portion of long-term debt— 10,000 
Total current liabilities782,229 760,363 
Long-term debt1,418,870 1,518,403 
Deferred compensation plan liabilities97,932 88,181 
Long-term operating lease liabilities27,954 30,626 
Deferred revenues15,820 15,862 
Deferred income taxes11,815 9,718 
Income taxes payable3,615 7,337 
Other liabilities4,242 5,378 
Total liabilities2,362,477 2,435,868 
Commitments and contingencies (Note 18)
Stockholders’ equity:
Preferred stock, $0.01 par value, authorized 100,000,000 shares; none issued or outstanding as of September 30, 2024 and December 31, 2023
— — 
Class A common stock, $0.01 par value, authorized 100,000,000 shares; issued and outstanding 11,537,627 shares as of September 30, 2024 and December 31, 2023
115 115 
Class B common stock, $0.01 par value, authorized 1,800,000,000 shares; issued and outstanding 290,505,175 and 284,728,210 shares as of September 30, 2024 and December 31, 2023, respectively
2,905 2,848 
Additional paid-in capital1,201,442 1,127,234 
Accumulated other comprehensive loss
(82,959)(84,987)
Accumulated deficit(88,197)(161,932)
Non-controlling interest704 704 
Total stockholders’ equity1,034,010 883,982 
Total liabilities and stockholders’ equity
$3,396,487 $3,319,850 

See accompanying notes to consolidated financial statements.
4


BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)

Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Revenues:
Subscriptions$303,239 $270,751 $907,772 $807,839 
Perpetual licenses11,274 11,887 31,649 33,152 
Subscriptions and licenses314,513 282,638 939,421 840,991 
Services20,660 23,974 63,852 76,781 
Total revenues335,173 306,612 1,003,273 917,772 
Cost of revenues:
Cost of subscriptions and licenses44,220 42,088 126,870 124,175 
Cost of services20,612 22,588 62,985 74,111 
Total cost of revenues64,832 64,676 189,855 198,286 
Gross profit270,341 241,936 813,418 719,486 
Operating expense (income):
Research and development70,068 65,465 204,148 203,382 
Selling and marketing64,940 53,757 176,455 160,262 
General and administrative51,359 42,678 152,695 128,743 
Deferred compensation plan6,983 (3,160)13,665 4,763 
Amortization of purchased intangibles8,361 9,517 25,717 29,567 
Total operating expenses201,711 168,257 572,680 526,717 
Income from operations
68,630 73,679 240,738 192,769 
Interest expense, net(4,669)(10,047)(16,289)(30,623)
Other (expense) income, net
(5,087)5,953 4,330 7,207 
Income before income taxes
58,874 69,585 228,779 169,353 
Provision for income taxes
(16,522)(16,514)(44,099)(22,107)
Equity in net (losses) income of investees, net of tax
(14)(44)14 (44)
Net income
$42,338 $53,027 $184,694 $147,202 
Per share information:
Net income per share, basic
$0.13 $0.17 $0.59 $0.47 
Net income per share, diluted
$0.13 $0.16 $0.57 $0.46 
Weighted average shares, basic315,207,216 313,069,132 314,820,679 311,915,808 
Weighted average shares, diluted333,789,636 332,825,186 333,724,425 332,144,893 

See accompanying notes to consolidated financial statements.
5


BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Comprehensive Income
(in thousands)
(unaudited)

Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Net income
$42,338 $53,027 $184,694 $147,202 
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustments10,306 (7,294)1,928 (5,416)
Actuarial (loss) gain on retirement plan, net of tax effect of $0, $(8), $(28), and $(15), respectively
(1)(6)100 28 
Total other comprehensive income (loss), net of taxes
10,305 (7,300)2,028 (5,388)
Comprehensive income
$52,643 $45,727 $186,722 $141,814 

See accompanying notes to consolidated financial statements.
6

BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Stockholders’ Equity
(in thousands, except share data)
(unaudited)

Three Months Ended September 30, 2024
Accumulated
Class A and Class BAdditionalOtherNon-Total
Common StockPaid-InComprehensiveAccumulatedControllingStockholders’
SharesPar ValueCapitalLossDeficitInterestEquity
Balance, June 30, 2024299,747,133 $2,997 $1,176,630 $(93,264)$(102,561)$704 $984,506 
Net income
— — — — 42,338 — 42,338 
Other comprehensive income
— — — 10,305 — — 10,305 
Dividends declared— — — — (18,134)— (18,134)
Shares issued in connection with deferred compensation plan
2,181,214 22 (22)— — — — 
Deferred compensation plan elective participant deferrals— — 43 — — — 43 
Shares issued in connection with executive bonus plan
88,296 1 4,282 — — — 4,283 
Shares issued in connection with employee stock purchase plan, net
131,558 1 5,667 — (173)— 5,495 
Stock-based compensation expense— — 14,843 — — — 14,843 
Shares related to restricted stock, net77,657 1 (1)— (1,415)— (1,415)
Repurchases of Class B common stock under approved program(183,056)(2)— — (8,252)— (8,254)
Balance, September 30, 2024302,042,802 $3,020 $1,201,442 $(82,959)$(88,197)$704 $1,034,010 

Nine Months Ended September 30, 2024
Accumulated
Class A and Class BAdditionalOtherNon-Total
Common StockPaid-InComprehensiveAccumulatedControllingStockholders’
SharesPar ValueCapitalLossDeficitInterestEquity
Balance, December 31, 2023296,265,837 $2,963 $1,127,234 $(84,987)$(161,932)$704 $883,982 
Net income
— — — — 184,694 — 184,694 
Other comprehensive income
— — — 2,028 — — 2,028 
Dividends declared— — — — (53,985)— (53,985)
Shares issued in connection with deferred compensation plan
4,655,277 46 (46)— — — — 
Deferred compensation plan elective participant deferrals— — 144 — — — 144 
Shares issued in connection with executive bonus plan
256,587 3 13,196 — — — 13,199 
Shares issued in connection with employee stock purchase plan, net
253,578 2 11,226 — (348)— 10,880 
Stock option exercises, net844,283 8 3,999 — (2,195)— 1,812 
Shares issued for stock grants, net11,391 — 600 — — — 600 
Stock-based compensation expense— — 45,096 — — — 45,096 
Shares related to restricted stock, net668,586 7 (7)— (8,671)— (8,671)
Repurchases of Class B common stock under approved program(912,737)(9)— — (45,760)— (45,769)
Balance, September 30, 2024302,042,802 $3,020 $1,201,442 $(82,959)$(88,197)$704 $1,034,010 

See accompanying notes to consolidated financial statements.
7

BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Stockholders’ Equity
(in thousands, except share data)
(unaudited)

Three Months Ended September 30, 2023
Accumulated
Class A and Class BAdditionalOtherNon-Total
Common StockPaid-InComprehensiveAccumulatedControllingStockholders’
SharesPar ValueCapitalLossDeficitInterestEquity
Balance, June 30, 2023294,712,983 $2,947 $1,085,066 $(87,828)$(357,117)$704 $643,772 
Net income
— — — — 53,027 — 53,027 
Other comprehensive loss
— — — (7,300)— — (7,300)
Dividends declared— — — — (14,768)— (14,768)
Shares issued in connection with deferred compensation plan, net
63,267 — — — (2,127)— (2,127)
Deferred compensation plan elective participant deferrals— — 61 — — — 61 
Shares issued in connection with executive bonus plan, net
34,313 — 3,251 — (1,430)— 1,821 
Shares issued in connection with employee stock purchase plan, net
162,459 2 5,429 — (623)— 4,808 
Stock option exercises, net185,255 2 888 — (419)— 471 
Stock-based compensation expense— — 14,122 — — — 14,122 
Shares related to restricted stock, net85,929 1 (1)— (1,726)— (1,726)
Balance, September 30, 2023295,244,206 $2,952 $1,108,816 $(95,128)$(325,183)$704 $692,161 

Nine Months Ended September 30, 2023
Accumulated
Class A and Class BAdditionalOtherNon-Total
Common StockPaid-InComprehensiveAccumulatedControllingStockholders’
SharesPar ValueCapitalLossDeficitInterestEquity
Balance, December 31, 2022289,014,487 $2,890 $1,030,466 $(89,740)$(370,866)$704 $573,454 
Net income
— — — — 147,202 — 147,202 
Other comprehensive loss
— — — (5,388)— — (5,388)
Dividends declared— — — — (43,992)— (43,992)
Shares issued in connection with deferred compensation plan, net
2,845,448 28 (28)— (38,456)— (38,456)
Deferred compensation plan elective participant deferrals— — 1,712 — — — 1,712 
Shares issued in connection with executive bonus plan, net
171,510 2 13,055 — (5,756)— 7,301 
Shares issued in connection with employee stock purchase plan, net
315,840 3 9,985 — (845)— 9,143 
Stock option exercises, net2,422,082 24 10,566 — (6,408)— 4,182 
Shares issued for stock grants, net12,639 — 600 — — — 600 
Stock-based compensation expense— — 42,465 — — — 42,465 
Shares related to restricted stock, net462,200 5 (5)— (6,062)— (6,062)
Balance, September 30, 2023295,244,206 $2,952 $1,108,816 $(95,128)$(325,183)$704 $692,161 

See accompanying notes to consolidated financial statements.
8


BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Nine Months Ended
September 30,
20242023
Cash flows from operating activities:
Net income
$184,694 $147,202 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization48,397 52,787 
Deferred income taxes7,056 (14,632)
Stock-based compensation expense57,856 56,092 
Deferred compensation plan13,665 4,763 
Amortization of deferred debt issuance costs5,554 5,469 
Change in fair value of derivative5,570 (4,102)
Foreign currency remeasurement (gain) loss
(126)3,198 
Other(1,733)2,464 
Changes in assets and liabilities, net of effect from acquisitions:
Accounts receivable34,588 56,065 
Prepaid and other assets(9,952)(1,246)
Accounts payable, accruals, and other liabilities36,356 33,437 
Deferred revenues(31,512)(17,688)
Income taxes payable, net of prepaid income taxes3,247 5,834 
Net cash provided by operating activities
353,660 329,643 
Cash flows from investing activities:
Purchases of property and equipment and investment in capitalized software(8,499)(18,906)
Acquisitions, net of cash acquired (128,774)(23,110)
Purchases of investments(807)(11,352)
Proceeds from investments— 2,123 
Other2,400 — 
Net cash used in investing activities
(135,680)(51,245)
Cash flows from financing activities:
Proceeds from credit facilities233,281 442,566 
Payments of credit facilities(207,608)(634,718)
Repayments of term loan(140,000)(3,750)
Payments of contingent and non-contingent consideration(3,022)(3,039)
Payments of dividends(53,985)(43,992)
Proceeds from stock purchases under employee stock purchase plan11,228 9,988 
Proceeds from exercise of stock options4,007 10,590 
Payments for shares acquired including shares withheld for taxes(11,199)(57,527)
Repurchases of Class B common stock under approved program(45,769)— 
Other(151)(137)
Net cash used in financing activities
(213,218)(280,019)
Effect of exchange rate changes on cash and cash equivalents(999)(3,100)
Increase (decrease) in cash and cash equivalents
3,763 (4,721)
Cash and cash equivalents, beginning of year68,412 71,684 
Cash and cash equivalents, end of period
$72,175 $66,963 
9


BENTLEY SYSTEMS, INCORPORATED
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Nine Months Ended
September 30,
20242023
Supplemental information:
Cash paid for income taxes$33,948 $29,467 
Income tax refunds925 764 
Interest paid12,130 29,370 
Non-cash investing and financing activities:
Cost method investment— 3,500 
Deferred, non-contingent consideration, net— 525 
Share-settled executive bonus plan awards13,199 13,057 
Deferred compensation plan elective participant deferrals144 1,712 

See accompanying notes to consolidated financial statements.
10


BENTLEY SYSTEMS, INCORPORATED
Notes to Consolidated Financial Statements
(in thousands, except share and per share data)
(unaudited)

Note 1: Basis of Presentation
The accompanying unaudited consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. The accompanying unaudited consolidated financial statements have been prepared in U.S. dollars, and in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the SEC regarding interim financial reporting. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10‑K. In management’s opinion, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal, recurring and non-recurring adjustments) that were considered necessary for the fair statement of the Company’s financial position, results of operations, and cash flows as of the dates and for the periods indicated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. Actual results could differ materially from those estimates. The December 31, 2023 consolidated balance sheet included herein is derived from the Company’s audited consolidated financial statements.
Note 2: Recent Accounting Pronouncements
In March 2024, the SEC adopted the final rule under SEC Release No. 33‑11275, The Enhancement and Standardization of Climate‑Related Disclosures for Investors. The final rule requires registrants to disclose certain climate‑related information in registration statements and annual reports. The final rule disclosure requirements will begin phasing in prospectively for the Company’s fiscal year beginning January 1, 2025. Subsequent to issuance, the final rule became the subject of litigation and the SEC issued a stay to allow the legal process to proceed. The Company is currently evaluating the impact of the final rule on its consolidated financial statements disclosures.
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023‑09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023‑09”), which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. ASU 2023‑09 is effective for the Company for the annual reporting period beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2023‑09 on its consolidated financial statements disclosures.
In November 2023, the FASB issued ASU No. 2023‑07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023‑07”), which expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how the Company’s chief operating decision maker (“CODM”) uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023‑07 is effective for the Company for the annual reporting period beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of the adoption of ASU 2023‑07 on its consolidated financial statements disclosures.
11


Note 3: Revenue from Contracts with Customers
Disaggregation of Revenues
The Company’s revenues consist of the following:
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Subscriptions:
Enterprise subscriptions (1)
$135,667 $111,318 $391,039 $318,896 
SELECT subscriptions64,607 63,406 191,796 190,834 
Term license subscriptions102,965 96,027 324,937 298,109 
Subscriptions303,239 270,751 907,772 807,839 
Perpetual licenses11,274 11,887 31,649 33,152 
Subscriptions and licenses314,513 282,638 939,421 840,991 
Services:
Recurring3,387 3,606 11,241 12,733 
Other17,273 20,368 52,611 64,048 
Services20,660 23,974 63,852 76,781 
Total revenues$335,173 $306,612 $1,003,273 $917,772 
(1)Enterprise subscriptions includes revenue attributable to Enterprise 365 (“E365”) subscriptions of $133,347 and $107,681 for the three months ended September 30, 2024 and 2023, respectively, and $382,013 and $301,260 for the nine months ended September 30, 2024 and 2023, respectively.
The Company recognizes perpetual licenses and the term license component of subscriptions as revenue when either the licenses are delivered or at the start of the subscription term. For the three months ended September 30, 2024 and 2023, the Company recognized $166,035 and $147,340 of license related revenues, respectively, of which $154,761 and $135,453, respectively, were attributable to the term license component of the Company’s subscription‑based commercial offerings recorded in Subscriptions in the consolidated statements of operations. For the nine months ended September 30, 2024 and 2023, the Company recognized $504,802 and $444,186 of license related revenues, respectively, of which $473,153 and $411,034, respectively, were attributable to the term license component of the Company’s subscription‑based commercial offerings recorded in Subscriptions in the consolidated statements of operations.
The Company derived 6% and 8% of its total revenues through channel partners for the three months ended September 30, 2024 and 2023, respectively, and 7% of its total revenues through channel partners for the nine months ended September 30, 2024 and 2023.
12


Revenue from external customers is attributed to individual countries based upon the location of the customer. Revenues by geographic region are as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Americas (1)
$175,609 $162,367 $536,112 $489,548 
Europe, the Middle East, and Africa (“EMEA”)95,343 86,956 285,922 263,232 
Asia-Pacific (“APAC”)
64,221 57,289 181,239 164,992 
Total revenues$335,173 $306,612 $1,003,273 $917,772 
(1)Americas includes the U.S., Canada, and Latin America (including the Caribbean). Revenue attributable to the U.S. totaled $139,338 and $129,510 for the three months ended September 30, 2024 and 2023, respectively, and $416,600 and $384,807 for the nine months ended September 30, 2024 and 2023, respectively.
Unbilled Revenues
Unbilled revenues represent revenues that have not yet been billed to customers due to timing differences in usage and billing cycles, and are included in Accounts receivable in the consolidated balance sheets. As of September 30, 2024 and December 31, 2023, unbilled revenues were $159,172 and $129,494, respectively.
Contract Balances
As of September 30, 2024 and December 31, 2023, the Company’s contract assets relate to performance obligations completed in advance of the right to invoice and are included in Prepaid and other current assets in the consolidated balance sheets. Contract assets were not material as of September 30, 2024 or December 31, 2023.
Deferred revenues consist of billings made or payments received in advance of revenue recognition from subscriptions and services. The timing of revenue recognition may differ from the timing of billings to users. As of September 30, 2024 and December 31, 2023, total deferred revenues on the consolidated balance sheets were $241,111 and $269,647, respectively.
For the nine months ended September 30, 2024, $211,782 of revenues that were included in the December 31, 2023 deferred revenues balance were recognized. There were additional deferrals of $182,880 for the nine months ended September 30, 2024, which were primarily related to new billings. For the nine months ended September 30, 2023, $183,335 of revenues that were included in the December 31, 2022 deferred revenues balance were recognized. There were additional deferrals of $169,368 for the nine months ended September 30, 2023, which were primarily related to new billings.
As of September 30, 2024 and December 31, 2023, the Company has deferred $19,241 and $18,269, respectively, related to portfolio balancing exchange rights which is included in Deferred revenues in the consolidated balance sheets.
Remaining Performance Obligations
The Company’s contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. As of September 30, 2024, amounts allocated to these remaining performance obligations are $241,111, of which the Company expects to recognize approximately 93% over the next 12 months with the remaining amount thereafter.
13


Note 4: Acquisitions
The aggregate details of the Company’s acquisition activity are as follows:
Acquisitions Completed During
Nine Months Ended September 30,
20242023
Number of acquisitions2 2 
Cash paid at closing$141,310 $23,375 
Cash acquired(12,536)(265)
Net cash paid$128,774 $23,110 
(1)Of the cash paid at closing, $11,000 was held in an escrow account to secure any potential indemnification and other obligations of the seller as of September 30, 2024.
The operating results of the acquired businesses were not material, individually or in the aggregate, to the Company’s consolidated statements of operations.
The operating results of the acquired businesses are included in the Company’s consolidated financial statements from the closing date of each respective acquisition. The purchase price for each acquisition has been allocated to the net tangible and intangible assets and liabilities based on their estimated fair values at the respective acquisition date.
The Company is in the process of finalizing the purchase accounting for two acquisitions completed during the nine months ended September 30, 2024. Identifiable assets acquired and liabilities assumed were provisionally recorded at their estimated fair values on the respective acquisition date. The initial accounting for these business combinations is not complete because the evaluation necessary to assess the fair values of certain net assets acquired is still in process. The provisional amounts are subject to revision until the evaluations are completed to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. The allocation of the purchase price may be modified from the date of the acquisition as more information is obtained about the fair values of assets acquired and liabilities assumed, however, such measurement period cannot exceed one year.
Acquisition costs are expensed as incurred and are recorded in General and administrative in the consolidated statements of operations. For the three months ended September 30, 2024 and 2023, the Company’s acquisition costs were $877 and insignificant, respectively, and $1,306 and $5,803 for the nine months ended September 30, 2024 and 2023, respectively, which include costs related to legal, accounting, valuation, insurance, and other consulting and transaction fees.
14


The following summarizes the fair values of the assets acquired and liabilities assumed, as well as the weighted average useful lives assigned to acquired intangible assets at the respective date of each acquisition (including contingent consideration):
Acquisitions Completed During
Nine Months EndedYear Ended
September 30, 2024December 31, 2023
Consideration:
Cash paid at closing$141,310 $26,287 
Deferred, non-contingent consideration, net— 525 
Other— 15 
Total consideration$141,310 $26,827 
Assets acquired and liabilities assumed:
Cash$12,536 $264 
Accounts receivable and other current assets5,272 1,742 
Operating lease right-of-use assets103 397 
Deferred income taxes— 2,151 
Other assets86 6 
Software and technology (weighted average useful life of 5 and 3 years, respectively)
7,025 3,077 
Customer relationships (weighted average useful life of 6 years)
— 3,900 
Trademarks (weighted average useful life of 10 and 5 years, respectively)
5,100 1,000 
Total identifiable assets acquired excluding goodwill30,122 12,537 
Accruals and other current liabilities(2,046)(624)
Deferred revenues(2,369)(4,623)
Operating lease liabilities(103)(397)
Deferred income taxes(509)— 
Total liabilities assumed(5,027)(5,644)
Net identifiable assets acquired excluding goodwill25,095 6,893 
Goodwill116,215 19,934 
Net assets acquired$141,310 $26,827 
Goodwill recorded in connection with the acquisitions was attributable to synergies expected to arise from cost saving opportunities, as well as future expected cash flows. The Company expects $5,756 of the goodwill recorded relating to the 2024 acquisitions will be deductible for income tax purposes.
15


Note 5: Property and Equipment, Net
Property and equipment, net consist of the following:
September 30, 2024December 31, 2023
Land$1,341 $2,811 
Building and improvements31,611 31,025 
Computer equipment and software50,748 46,202 
Furniture, fixtures, and equipment10,197 9,799 
Aircraft2,038 2,038 
Other83 89 
Property and equipment, at cost96,018 91,964 
Less: Accumulated depreciation(61,485)(51,864)
Total property and equipment, net$34,533 $40,100 
Depreciation expense was $3,361 and $3,135 for the three months ended September 30, 2024 and 2023, respectively, and $10,041 and $8,769 for the nine months ended September 30, 2024 and 2023, respectively.
Note 6: Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill are as follows:
Balance, December 31, 2023$2,269,336 
Acquisitions116,215 
Foreign currency translation adjustments5,674 
Other adjustments(833)
Balance, September 30, 2024$2,390,392 
Details of intangible assets other than goodwill are as follows:
September 30, 2024December 31, 2023
Estimated
Useful Life		Gross
Carrying
Amount		Accumulated
Amortization		Net Book
Value		Gross
Carrying
Amount		Accumulated
Amortization		Net Book
Value
Intangible assets subject to amortization:
Software and technology
3-5 years
$88,096 $(59,872)$28,224 $89,693 $(59,045)$30,648 
Customer relationships
3-10 years
323,403 (163,103)160,300 323,442 (142,378)181,064 
Trademarks
3-10 years
75,939 (38,698)37,241 70,710 (33,709)37,001 
Non-compete agreements
5 years
350 (327)23 350 (276)74 
Total intangible assets$487,788 $(262,000)$225,788 $484,195 $(235,408)$248,787 
16

The aggregate amortization expense for purchased intangible assets with finite lives was reflected in the Company’s consolidated statements of operations as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Cost of subscriptions and licenses$3,087 $3,161 $9,442 $9,471 
Amortization of purchased intangibles8,361 9,517 25,717 29,567 
Total amortization expense$11,448 $12,678 $35,159 $39,038 
Note 7: Investments
Investments consist of the following:
September 30, 2024December 31, 2023
Cost method investments$22,245 $21,044 
Equity method investments2,479 2,436 
Total investments$24,724 $23,480 
Cost Method Investments
The Company invests in technology development companies, generally in the form of equity interests or convertible notes. In March 2023, the Company acquired an equity interest in Worldsensing, a leading global connectivity hardware platform company for infrastructure monitoring, via contribution of its sensemetrics’ Thread connectivity device business (the “Thread business”) and cash. The non‑cash contribution of the Thread business resulted in an insignificant gain, which was recorded in Other (expense) income, net in the consolidated statements of operations for the nine months ended September 30, 2023.
During the second quarter of 2023, the Company recognized impairment charges of $7,318 to write-down certain cost method investments to their fair value primarily as a result of the investees’ decline in operating performance and the overall decline in the venture investment valuation environment. The impairment charges were recorded in Other (expense) income, net in the consolidated statements of operations for the nine months ended September 30, 2023 (see Note 20).
During the third quarter of 2023, the Company recognized gains on investments of $2,360, which was recorded in Other (expense) income, net in the consolidated statements of operations for the three and nine months ended September 30, 2023 (see Note 20).
During the nine months ended September 30, 2024, the Company invested a total of $807. During the nine months ended September 30, 2023, the Company invested a total of $12,591, including $8,928 of cash and non-cash for its investment in Worldsensing. As of September 30, 2024 and December 31, 2023, the Company’s investment balance in Worldsensing was $8,928.
During the second quarter of 2024, the Company acquired a business from Teralytics Holdings AG (“Teralytics”) for $5,000. As of September 30, 2024, the Company retained its ownership percentage in Teralytics. The carrying value of Teralytics was zero as of September 30, 2024 and December 31, 2023.
Equity Method Investments
The Company is party to joint ventures, which are accounted for using the equity method. No investments were made during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, the Company invested $2,261.
17


Note 8: Leases
The Company’s operating leases consist of office facilities, office equipment, and automobiles. As of September 30, 2024, the Company’s leases have remaining terms of less than one year to nine years, some of which include one or more options to renew, with renewal terms from one year to five years and some of which include options to terminate the leases from less than one year to five years.
The components of operating lease cost reflected in the consolidated statements of operations were as follows:
Three Months EndedNine Months Ended
September 30,September 30,
2024202320242023
Operating lease cost (1)
$4,146 $4,312 $11,399 $13,474 
Variable lease cost1,261 1,133 3,549 3,481 
Total operating lease cost$5,407 $5,445 $14,948 $16,955 
(1)Operating lease cost includes rent cost related to operating leases for office facilities of $3,884 and $4,180 for the three months ended September 30, 2024 and 2023, respectively, and $10,656 and $12,926 for the nine months ended September 30, 2024 and 2023, respectively.
Supplemental operating cash flows and other information related to leases was as follows:
Nine Months Ended
September 30,
20242023
Cash paid for operating leases included in operating cash flows$11,314 $13,830 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
$7,394 $14,794 
(1)Right‑of‑use assets obtained in exchange for new operating lease liabilities does not include the impact from acquisitions of $103 and $397 for the nine months ended September 30, 2024 and 2023, respectively.
The weighted average remaining lease term for operating leases was 4.4 years and 4.6 years as of September 30, 2024 and December 31, 2023, respectively. The weighted average discount rate was 5.1% and 4.8% as of September 30, 2024 and December 31, 2023, respectively.
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Note 9: Accruals and Other Current Liabilities
Accruals and other current liabilities consist of the following:
September 30, 2024December 31, 2023
Cloud Services Subscription deposits$343,452 $284,276 
Accrued benefits41,134 39,983 
Accrued compensation38,922 43,316 
Due to customers16,198 16,924 
Accrued indirect taxes6,719 10,722 
Accrued acquisition stay bonus6,625 4,336 
Accrued professional fees5,677 5,970 
Accrued cloud provisioning costs4,065 3,572 
Deferred compensation plan liabilities3,833 2,355 
Employee stock purchase plan contributions2,971 5,790 
Accrued realignment costs472 12,459 
Non-contingent consideration from acquisitions— 3,576 
Other accrued and current liabilities24,843 24,069 
Total accruals and other current liabilities$494,911 $457,348 
Note 10: Long-Term Debt
Long‑term debt consists of the following:
September 30, 2024December 31, 2023
Credit facility:
Revolving loan facility due November 2025$117,701 $92,028 
Term loan due November 202550,000 190,000 
Convertible senior notes due January 2026 (the “2026 Notes”)687,830 687,830 
Convertible senior notes due July 2027 (the “2027 Notes”)575,000 575,000 
Unamortized debt issuance costs(11,661)