Dive Brief:
- Behavioral efficiency firm Opower has signed its largest contract to date with Pacific Gas & Electric, and expects to see revenue from the deal begin to filter in next year.
- Company officials said the partnership is proof that utilities are seeking to consolidate customer solutions by hiring a single energy management and customer engagement solutions provider.
- Opower made the announcement as part of its first quarter earnings release, in which the company noted that revenues had increased 17% year-over-year.
Dive Insight:
Opower's first quarter revenues reached $33.4 million, a significant gain over last year. But the company's biggest news was a new deal inked with PG&E.
While few details about the new deal were released, the company said it is the largest in Opower's history. Greentech Media reports it is a $90 million contract extending seven years.
“This contract with PG&E validates our belief that utilities seek to consolidate their customer engagement solutions with a single strategic vendor," Yates said. "We believe our platform is the solution that utilities need as they replace disjointed applications that are costly to maintain and produce an unsatisfying experience for customers."
Greentech Media also reported that Opower has resigned Sacramento Municipal Utility District as a client. The utility was Opower's first client, but SMUD selected another vendor in 2013.
The company reported a GAAP operating loss of $9.9 million, compared to an operating loss of $7.3 million in the first quarter of last year.
