During the company’s second-quarter earnings call, Dan Yates, CEO of Opower, announced that the energy-efficiency platform provider had landed a utility deal worth $50 million over six years. The contract is for Opower’s digital engagement solution and a large energy-efficiency program with an existing client. The utility was not named.
In the first quarter, Opower signed its largest deal to date, a nearly $90 million, seven-year contract with Pacific Gas & Electric and a significant deal with Sacramento Municipal Utility District for enterprise-wide digital engagement and energy efficiency.
“Despite the large size of these deals, it is important to note that there is still plenty of room to expand with these clients,” Yates said on the call, especially with demand response and the now-renamed Billing Advisor product.
After refining its approach in the international market, Opower signed a new deal in a competitive market overseas for its digital engagement product. Yates also said more than 1 million of E.ON U.K.’s customers were using Opower’s digital engagement tool that the utility branded as an energy savings toolkit.
Opower is also expanding its digital toolbox. The company had previously developed webpages that utilities could white-label and customize -- now the firm has a web platform that utilities can customize more extensively with standalone pages in addition to widgets and APIs. Yates expects the enhanced customization to be a particularly strong sell in competitive markets where the goal is engagement and not just efficiency.
The latest contract for $50 million is 80 percent new business and 20 percent renewal of existing business. The length of the contract, similar to the seven-year deal with PG&E, is more than double the average contract length for Opower. The contract was anticipated, so it is already reflected in Opower’s guidance for 2015.
Total revenue for the second quarter was $35.8 million, a 15 percent increase over the same period in 2014. Revenue expectations remained steady between $144 million and $149 million for this year. Non-GAAP net loss has been adjusted down slightly to $27.5 million to $32 million for the full year. Opower’s CFO Thomas Kramer said the company is on track to hit 20 percent growth in 2016 and beyond, as well as to achieve profitability in 2017.