Dive Brief:
- Shares of EnerNOC were up 5% Friday after the demand response provider said it beat analyst estimates and posted revenue in excess of $329 million. Observers had been looking for revenues around $318 million.
- EnerNOC now has about 6,000 customers, and in the third quarter the company signed more contracts for its energy data services than it had in any previous quarter. Revenues were up 23% year-over-year through the first nine months of 2014.
- Net income for the quarter was $96.7 million, compared to $107 million in the third quarter of last year. The company has been on a buying spree as it expands into new markets, and recently announced it would acquire World Energy Solutions, a cloud-based supply procurement software vendor.
Dive Insight:
EnerNOC is continuing to expand its energy intelligence operations, and said it grew enterprise revenue contracts from 33,300 at the end of the second quarter to 35,300 at the end of the third quarter. The company signed new deals with brand name companies including 3M, AEW Capital Management, Alberta Health Services, and Performance Food Group.
"Our third quarter results reflect strong financial performance, but what was even more exciting was the traction achieved by our enterprise sales team, including signing subscription contracts with 200 enterprise customers and 2,000 additional sites," said EnerNOC Chairman and CEO Tim Healy, according to the Boston Business Journal. "We look forward to further building out our product portfolio to deliver more value to an expanding enterprise customer base, as exemplified by our recently announced agreement to acquire World Energy Solutions."
World Energy generated $18.9 million in revenue and a gross margin of 77% for the six months ended June 30, 2014, EnerNOC revealed. The deal is expected to add approximately $30 million to EnerNOC's annual recurring revenue from enterprise customers.
