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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Total stock‑based compensation expense consists of the following:
|  |  | Three Months Ended
|  |  | March 31,
|  |  |  |  | 2024 |  | 2023
Restricted stock and restricted stock units (“RSUs”) expense |  |  |  |  | $ | 13,690 |  |  | $ | 13,923 |
Bonus Plan expense (see Note 11) |  |  |  |  | 5,301 |  |  | 4,546 |
ESPP expense (see Note 13) |  |  |  |  | 624 |  |  | 575 |
Stock option expense |  |  |  |  | — |  |  | 343 |
DCP elective participant deferrals expense (1) (see Note 12) |  |  |  |  | 43 |  |  | 97 |
Total stock-based compensation expense (2) |  |  |  |  | $ | 19,658 |  |  | $ | 19,484 |
(1)DCP elective participant deferrals expense excludes deferred incentive bonus payable pursuant to the Bonus Plan. (2)As of March 31, 2024 and December 31, 2023, $6,300 and $4,043 remained in Accruals and other current liabilities in the consolidated balance sheets, respectively. Total stock‑based compensation expense is included in the consolidated statements of operations as follows:
|  |  | Three Months Ended
|  |  | March 31,
|  |  |  |  | 2024 |  | 2023
Cost of subscriptions and licenses |  |  |  |  | $ | 1,094 |  |  | $ | 1,034 |
Cost of services |  |  |  |  | 882 |  |  | 1,007 |
Research and development |  |  |  |  | 4,881 |  |  | 5,286 |
Selling and marketing |  |  |  |  | 2,778 |  |  | 2,870 |
General and administrative |  |  |  |  | 10,023 |  |  | 9,287 |
Total stock-based compensation expense |  |  |  |  | $ | 19,658 |  |  | $ | 19,484 |
Stock‑based compensation expense is measured at the grant date fair value of the award and is recognized ratably over the requisite service period, which is generally the vesting period. Specifically for performance‑based RSUs, stock‑based compensation expense is measured at the grant date fair value of the award and is recognized ratably over the requisite service period based on the number of awards expected to vest at each reporting date. The Company accounts for forfeitures of equity awards as those forfeitures occur. Bentley Systems, Incorporated 2020 Omnibus Incentive Plan The Bentley Systems, Incorporated 2020 Omnibus Incentive Plan (the “2020 Plan”) provides for the granting of stock, stock options, restricted stock, RSUs, and other stock‑based or performance‑based awards to certain directors, officers, colleagues, consultants, and advisors of the Company, and terminates in September 2030. The 2020 Plan provides that 25,000,000 shares of Class B common stock may be issued for equity awards. Equity awards that are expired, canceled, forfeited, or terminated for any reason will be available for future grant under the 2020 Plan. As of March 31, 2024, equity awards available for future grants under the 2020 Plan were 20,273,484. Restricted Stock and RSUs Under the equity incentive plans, the Company may grant both time‑based and performance‑based shares of restricted Class B common stock and RSUs to eligible colleagues. Time‑based awards generally vest ratably on each of the first four anniversaries of the grant date. Performance‑based awards vesting is determined by the achievement of certain business growth targets, which include growth in annualized recurring revenues (“ARR”), as well as actual bookings for perpetual licenses and non‑recurring services. Performance targets are generally set for performance periods of one year to three years. The following is a summary of unvested restricted stock and RSU activity and related information under the Company’s applicable equity incentive plans:
|  |  |  |  |  |  | Time- |  | Performance-
|  |  |  |  |  |  | Based |  | Based
|  |  | Time- |  |  |  | Weighted |  | Weighted
| Total |  | Based |  |  |  | Average |  | Average
| Restricted |  | Restricted |  | Performance- |  | Grant Date |  | Grant Date
| Stock |  | Stock |  | Based |  | Fair Value |  | Fair Value
| and RSUs |  | and RSUs |  | RSUs |  | Per Share |  | Per Share
Unvested, December 31, 2023 | 3,303,849 |  |  | 2,938,208 |  | (3) | 365,641 |  | (4) | $ | 39.87 |  |  | $ | 39.21 |
Granted | 830,534 |  | (1) | 670,560 |  |  | 159,974 |  | (5) | 51.36 |  | 48.60
Vested | (606,781) |  |  | (424,991) |  |  | (181,790) |  |  | 40.30 |  |  | 39.15 |
Forfeited and canceled | (55,497) |  |  | (55,497) |  |  | — |  |  | 36.01 |  |  | 0.00 |
Unvested, March 31, 2024 | 3,472,105 |  | (2) | 3,128,280 |  | (3) | 343,825 |  |  | $ | 42.34 |  |  | $ | 43.61 |
(1)For the three months ended March 31, 2024, the Company only granted RSUs. (2)Includes 51,638 RSUs which are expected to be settled in cash. (3)Includes 199,076 time‑based RSUs granted during the three months ended March 31, 2022 to certain officers and key employees, which cliff vest on January 31, 2025. (4)Primarily relates to the 2023 annual performance period, except for 185,186 performance‑based RSUs granted during the year ended December 31, 2022 with extraordinary terms, which are described below. (5)Primarily relates to the 2024 annual performance period, except for 1,335 additional shares earned based on the achievement of 2023 performance goals for performance-based RSUs granted during the year ended December 31, 2023. During the year ended December 31, 2022, the Company granted 185,186 performance‑based RSUs to certain officers and key employees, which vest subject to the achievement of certain performance goals over a three‑year performance period (the “Performance Period”). For each year of the Performance Period, one‑third of the performance‑based RSUs will be subject to a cliff, whereby no vesting of that portion will occur unless the Company’s applicable margin metrics (which, for 2022 was Adjusted EBITDA margin, and for 2023 was and 2024 will be Adjusted operating income inclusive of stock-based compensation expense (“Adjusted OI w/SBC”) margin, excluding the impact of foreign currency exchange fluctuations) also equals or exceeds the relevant target level for such year. Provided that the applicable margin targets are met, the total number of performance‑based RSUs that will vest is determined by the achievement of growth targets, which include growth in ARR, as well as actual bookings for perpetual licenses and non‑recurring services. Final actual vesting will be determined on January 31, 2025. The 2023 Adjusted OI w/SBC margin target, excluding the impact of foreign currency exchange fluctuations, and the 2022 Adjusted EBITDA margin target for the performance‑based RSUs were met. The weighted average grant date fair values of RSUs granted were $50.83 and $40.73, for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024 and 2023, restricted stock and RSUs were issued net of 113,790 and 78,993 shares, respectively, which were sold back to the Company to settle applicable income tax withholdings of $5,729 and $3,025, respectively. As of March 31, 2024, there was $102,848 of unrecognized compensation expense related to unvested time‑based restricted stock and RSUs, which is expected to be recognized over a weighted average period of approximately 2.0 years. As of March 31, 2024, there was $9,208 of unrecognized compensation expense related to unvested performance‑based RSUs, which is expected to be recognized over a weighted average period of approximately 0.8 years. Stock Options The following is a summary of stock option activity and related information under the Company’s applicable equity incentive plans:
|  |  | Weighted |  |  |  |
|  |  | Average |  |  |  |
| Stock |  | Exercise Price |  |  |  |
| Options |  | Per Share |  |  |  |
Outstanding, December 31, 2023 | 916,429 |  |  | $ | 5.74 |  |  |  |  |
Exercised | (911,429) |  |  | 5.74 |  |  |  |  |
Forfeited and expired | (5,000) |  |  | 5.74 |  |  |  |  |
Outstanding, March 31, 2024 | — |  |  | $ | — |  |  |  |  |
For the three months ended March 31, 2024 and 2023, the Company received cash proceeds of $4,007 and $4,202, respectively, related to the exercise of stock options. The total intrinsic value of stock options exercised for the three months ended March 31, 2024 and 2023 was $40,775 and $35,076, respectively. As of March 31, 2024, there was no remaining unrecognized compensation expense related to unvested stock options.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
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