Q3 revenue is $33.8 million, representing 50%
top line growth year over year
Behavioral Demand Response pilot delivers 5%
energy savings at peak
Opower (NYSE: OPWR), a leading provider of cloud-based software
for the utility industry, today announced its financial results for
the third quarter ended September 30, 2014.
“We are succeeding on the strength of our solutions and our
consistent execution over the 7-year history of our company,” said
Daniel Yates, Chief Executive Officer of Opower. “We attribute our
success to the power of our platform and our ability to digitize
the customer experience for utilities.”
Revenue of $33.8 million exceeded Opower’s Q3 guidance by $2.2
million. Adjusted EBITDA loss of $(1.1) million was also well ahead
of expectations.
During Q3, Opower demonstrated the effectiveness of its
Behavioral Demand Response (BDR) solution. Across ten peak events
called by three separate customers, Opower BDR delivered an average
load reduction of nearly 3 percent with peak load reduction of 5
percent. Opower BDR uses smart meter data, proprietary analytics,
behavioral science and high volume messaging to deliver peak
reduction for utility customers. “I cannot think of a better way to
demonstrate our technology and data lead,” said Yates.
Third Quarter 2014 Financial Highlights
Revenue
- Revenue was $33.8 million, an increase
of 50% from the comparable period in 2013.
Operating Loss
- GAAP operating loss was $(7.4) million,
compared to an operating loss of $(3.6) million for the comparable
period in 2013.
- Non-GAAP operating loss was $(2.9)
million, compared to a non-GAAP operating loss of $(2.4) million
for the comparable period in 2013.
Net Loss
- GAAP net loss was $(8.2) million,
compared to a net loss of $(3.2) million for the comparable period
in 2013. GAAP net loss per share was $(0.17), based on 49.1 million
weighted-average common shares outstanding, compared to a GAAP net
loss per share of $(0.15) for the comparable period in 2013.
- Non-GAAP net loss was $(3.7) million,
compared to a non-GAAP net loss of $(2.0) million for the
comparable period in 2013. Non-GAAP net loss per share was $(0.08),
based on 49.1 million non-GAAP weighted-average common shares
outstanding, compared to a non-GAAP net loss per share of $(0.05)
for the comparable period in 2013.
Adjusted EBITDA
- Adjusted EBITDA was a loss of $(1.1)
million, compared to a loss of $(1.2) million for the comparable
period in 2013.
Balance Sheet
- Cash and cash equivalents as of
September 30, 2014 totaled $137.6 million, an increase of $108.7
million from the prior year-end.
Business Outlook
Opower is issuing guidance for the fourth quarter and full year
of 2014 as indicated below:
Fourth Quarter 2014
- Total revenue is expected to be in the
range of $33.2 million to $33.6 million.
- Adjusted EBITDA is expected to be a
loss in the range of $(5.5) million to $(6.0) million.
Full Year 2014
- Total revenue is expected to be in the
range of $126.8 million to $127.2 million, an increase from prior
expectations of total revenue between $120.0 and $123.5
million.
- Adjusted EBITDA is expected to be a
loss in the range of $(14.7) million to $(15.2) million.
Conference Call Information
What:
Opower Third Quarter 2014 Financial Results Conference Call
When:
Tuesday, November 11, 2014
Time:
5:00 p.m. ET
Live Call:
(877) 201-0168, domestic
(647) 788-4901, international Conference ID #19810499
Webcast:
http://investor.opower.com (live and
replay)
The webcast will be archived on Opower’s website for three
months.
About Opower
Working with 95+ utility partners and serving 50+ million homes
and businesses across the world, Opower is a leading provider of
cloud-based software to the utility industry, and is transforming
the way utilities relate to their customers. By combining data
management, insightful analytics, and behavioral science, Opower's
customer engagement platform positions utilities as trusted energy
advisors to the customers they serve. Founded in 2007 and listed on
the NYSE as OPWR, Opower is headquartered in Arlington, Virginia,
with offices in San Francisco, London, Singapore and Tokyo.
Opower's technology platform analyzes more than 300 billion meter
reads to deliver its services, and has created enough energy
savings through behavior change to power all the homes in a city of
1 million people for a year. For more information, please visit
www.opower.com and follow us on Twitter at @Opower.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial
measures: Non-GAAP operating loss, non-GAAP net loss, non-GAAP net
loss per share, non-GAAP weighted-average common shares outstanding
and adjusted EBITDA.
We define non-GAAP operating loss, non-GAAP net loss and
non-GAAP net loss per share as excluding the impact of stock-based
compensation. The weighted-average shares outstanding used to
calculate non-GAAP net loss per share gives effect to the
conversion of the preferred stock as of the beginning of each of
the periods presented.
We define adjusted EBITDA as net loss adjusted to exclude our
income tax provision, other income (expense), including interest,
depreciation and amortization, and stock-based compensation.
We believe that these non-GAAP measures of financial results
provide useful information to management and investors regarding
certain financial and business trends relating to Opower's
financial condition and results of operations. We use these
non-GAAP measures for financial, operational and budgetary
decision-making purposes, and to compare our performance to that of
prior periods for trend analyses. We believe that these non-GAAP
financial measures provide useful information regarding past
financial performance and future prospects, and permit us to
analyze key financial metrics used to make operational decisions
more thoroughly. We believe that the use of these non-GAAP
financial measures provides an additional tool for investors to use
in evaluating ongoing operating results and trends and in comparing
our financial measures with other software companies, many of which
disclose similar non-GAAP financial measures.
We do not consider these non-GAAP measures in isolation or as an
alternative to financial measures determined in accordance with
GAAP. The principal limitation of these non-GAAP financial measures
is their exclusion of significant income and expenses that are
required by GAAP to be recorded in the Company's financial
statements. In addition, they are subject to inherent limitations
as they reflect the exercise of judgment by management on which
income and expenses are excluded or included in determining these
non-GAAP financial measures. In order to compensate for these
limitations, management presents non-GAAP financial measures in
connection with GAAP results. We urge investors to review the
reconciliation of our non-GAAP financial measures to the comparable
GAAP financial measures that is included in this press release, and
not to rely on any single financial measure to evaluate our
business.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, statements regarding our revenue, net income and profitability
metrics for the company’s fourth quarter and full year 2014, and
statements regarding our market position in our industry. These
forward-looking statements are made as of the date of this press
release and were based on current expectations, estimates,
forecasts and projections as well as the beliefs and assumptions of
management. Words such as "expect," "anticipate," "should,"
"believe," "hope," "target," "project," "goals," "estimate,"
"potential," "predict," "may," "will," "might," "could," "intend,"
variations of these terms or the negative of these terms and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are subject to a number of
risks and uncertainties, many of which involve factors or
circumstances that are beyond our control. Our actual results could
differ materially from those stated or implied in forward-looking
statements due to a number of factors, including but not limited
to, unpredictable sales cycles and implementation times; changes to
the regulatory landscape could alter our customers’ buying
patterns; our ability to respond to evolving technological changes;
our ability to retain and attract customers; the risk of
technological developments and innovations by others; failure to
manage growth and effectively scale the organization; failure to
protect and enforce our intellectual property rights; assertions by
third parties that we infringe their intellectual property rights;
the risk of losing key employees; changes to current accounting
rules; and general political or destabilizing events, including
war, conflict or acts of terrorism. For a detailed discussion of
these and other risk factors, please refer to the risks detailed in
our filings with the Securities and Exchange Commission, including,
without limitation, our final prospectus for our initial public
offering filed on April 4, 2014 and most recent Quarterly Report on
Form 10-Q. Past performance is not necessarily indicative of future
results. We anticipate that subsequent events and developments will
cause our views to change. We undertake no intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. These
forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date of
this press release.
OPOWER, INC. CONSOLIDATED BALANCE
SHEETS (Unaudited, in thousands)
December 31,
2013
September 30,
2014
Assets Current assets:
Cash and cash equivalents
$
28,819
$
137,565
Accounts receivable, net 20,228 21,529
Prepaid expenses and other current
assets
1,988 3,854 Total current assets 51,035
162,948 Property and equipment, net 10,813 15,017 Other
assets 1,287 206 Total assets $ 63,135
$ 178,171
Liabilities and Stockholders'
Equity (Deficit) Current liabilities: Accounts payable $ 1,163
$ 943 Accrued expenses 4,452 5,545 Deferred revenue 50,623 54,931
Accrued compensation and benefits 4,817 6,167 Other current
liabilities 1,831 1,350 Total current
liabilities 62,886 68,936 Deferred revenue 1,767 558 Notes
payable 2,418 - Other liabilities 2,327 1,351
Total liabilities 69,398 70,845
Stockholders' equity (deficit): Convertible preferred stock:
Series A preferred stock 1,466 - Series B preferred stock 16,355 -
Series C preferred stock 49,872 - Total
convertible preferred stock 67,693 -
Preferred stock
- - Common stock - - Additional paid-in capital 9,407 220,636
Accumulated deficit (83,243 ) (113,224 ) Accumulated other
comprehensive loss (120 ) (86 ) Total stockholders'
equity (deficit) (6,263 ) 107,326
Total liabilities and stockholders' equity (deficit) $
63,135 $ 178,171
OPOWER, INC. CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2013 (2)
2014
2013 (2)
2014 Revenue $ 22,491 $ 33,774 $ 62,743 $ 93,594 Cost
of revenue (1) 7,970 11,212
23,239 31,920 Gross profit 14,521 22,562
39,504 61,674 Operating expenses (1): Sales and marketing
8,391 14,580 22,615 43,958 Research and development 7,821 11,177
19,666 34,131 General and administrative 1,886
4,241 4,948 13,010 Total
operating expenses 18,098 29,998
47,229 91,099 Operating loss (3,577 )
(7,436 ) (7,725 ) (29,425 ) Other income (expense): Gain
(loss) on foreign currency 370 (853 ) (30 ) (691 ) Interest expense
(61 ) (14 ) (122 ) (99 ) Other, net 84 144
17 287 Loss before income taxes
(3,184 ) (8,159 ) (7,860 ) (29,928 ) Provision for (benefit from)
income taxes (9 ) 37 24
53 Net loss $ (3,175 ) $ (8,196 ) $ (7,884 ) $ (29,981 )
Weighted-average common stock outstanding: Basic and diluted
21,303 49,091 20,959 39,253 Net loss per share: Basic and
diluted $ (0.15 ) $ (0.17 ) $ (0.38 ) $ (0.76 )
(1) Stock-based compensation was allocated as
follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2013 (2)
2014
2013 (2)
2014 Cost of revenue $ 67 $ 305 $ 133 $ 918 Sales and
marketing 492 2,019 748 6,994 Research and development 328 1,195
677 4,088 General and administrative 291 968
362 3,425 Total stock-based
compensation $ 1,178 $ 4,487 $ 1,920 $ 15,425
(2) During the first quarter of 2014, the Company updated its
methodology for allocating certain general and administrative costs
to more closely align these costs to the functional departments
consuming the related services. As a result, certain prior period
costs have been reclassified from general and administrative
expenses to cost of revenue, sales and marketing expenses, and
research and development expenses primarily based on the headcount
in each of these functional areas. The reclassifications for the
three months ended September 30, 2013 reduced general and
administrative expenses by $1.4 million and increased cost of
revenue, sales and marketing expenses, and research and development
expenses by $0.2 million, $0.6 million and $0.6 million,
respectively. The reclassifications for the nine months ended
September 30, 2013 reduced general and administrative expenses by
$3.5 million and increased cost of revenue, sales and marketing
expenses, and research and development expenses by $0.4 million,
$1.6 million, and $1.5 million, respectively. These
reclassifications had no effect on previously reported operating
loss, net loss or cash flows.
OPOWER, INC. CONSOLIDATED STATEMENT OF CASH
FLOWS (Unaudited, in thousands)
Nine Months Ended
September 30,
2013 2014 Operating Activities Net loss
$ (7,884 ) $ (29,981 ) Adjustments to reconcile net loss to net
cash provided by operating activities: Depreciation and
amortization 2,779 4,841 Stock-based compensation expense 1,920
15,425 Non-cash interest expense 109 51 Asset impairment - 82 Other
59
263
Changes in operating assets and liabilities: Accounts
receivable (6,999 ) (1,102 ) Prepaid expenses and other current
assets (339 )
(1,236
) Other assets (571 )
62
Accounts payable 547 (215 ) Accrued expenses 1,495 1,256 Accrued
compensation and benefits 446 1,363 Deferred revenue 14,779 2,755
Other liabilities (360 ) (319 ) Net cash provided by
(used in) operating activities 5,981
(6,755
)
Investing Activities Additions to property and
equipment (5,660 )
(8,081
) Net cash used in investing activities (5,660 )
(8,081
)
Financing Activities Proceeds from issuance of
common stock 2,548 1,777 Proceeds from initial public offering, net
of underwriting discounts and commissions - 123,955 Issuance of
notes payable 2,500 - Payment of offering costs - (1,687 )
Principal payments on capital lease obligations (24 )
(358 ) Net cash provided by financing activities 5,024
123,687 Effect of exchange rate changes
on cash and cash equivalents (11 )
(105
) Net increase in cash and cash equivalents 5,334 108,746
Cash and cash equivalents, beginning of period 24,597
28,819 Cash and cash equivalents, end of period $
29,931 $ 137,565
OPOWER, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (Unaudited, in thousands, except per share
data) Three Months
Ended
September 30,
Nine Months Ended
September 30,
2013 2014 2013
2014 Reconciliation of Net Loss to Adjusted
EBITDA: Net loss $ (3,175 ) $ (8,196 ) $ (7,884 ) $ (29,981 )
Provision for (benefit from) income
taxes
(9 ) 37 24 53 Other (income) expense, including interest (393 ) 723
135 503 Depreciation and amortization 1,158 1,852 2,779 4,841
Stock-based compensation 1,178 4,487
1,920 15,425 Adjusted EBITDA $ (1,241 )
$ (1,097 ) $ (3,026 ) $ (9,159 )
Reconciliation of Cost
of Revenue to Non-GAAP Cost of Revenue: Cost of revenue $ 7,970
$ 11,212 $ 23,239 $ 31,920 Less: Stock-based compensation 67
305 133 918
Non-GAAP cost of revenue $ 7,903 $ 10,907 $ 23,106
$ 31,002
Reconciliation of Gross Margin to
Non-GAAP Gross Margin: Gross margin 64.6 % 66.8 % 63.0 % 65.9 %
Add back: Stock-based compensation 0.3 % 0.9 %
0.2 % 1.0 % Non-GAAP gross margin 64.9 % 67.7
% 63.2 % 66.9 %
Reconciliation of Operating
Expenses to Non-GAAP Operating Expenses: Operating expenses $
18,098 $ 29,998 $ 47,229 $ 91,099 Less: Stock-based compensation
1,111 4,182 1,787
14,507 Non-GAAP operating expenses $ 16,987 $ 25,816
$ 45,442 $ 76,592
Reconciliation of
Operating Loss to Non-GAAP Operating Loss: Operating loss $
(3,577 ) $ (7,436 ) $ (7,725 ) $ (29,425 ) Add back: Stock-based
compensation 1,178 4,487 1,920
15,425 Non-GAAP operating loss $ (2,399 ) $
(2,949 ) $ (5,805 ) $ (14,000 )
Reconciliation of Net
Loss to Non-GAAP Net Loss: Net loss $ (3,175 ) $ (8,196 ) $
(7,884 ) $ (29,981 ) Add back: Stock-based compensation
1,178 4,487 1,920 15,425
Non-GAAP net loss $ (1,997 ) $ (3,709 ) $ (5,964 ) $ (14,556
)
Shares used in computing Non-GAAP Per Share
Amounts: Weighted-average common stock outstanding, basic and
diluted 21,303 49,091 20,959 39,253 Add: Additional
weighted-average shares giving effect to the conversion of
preferred stock as of the beginning of the period 19,247
- 19,247 6,909
Non-GAAP weighted-average common stock outstanding, basic and
diluted 40,550 49,091 40,206
46,162
Non-GAAP net loss per share
$ (0.05 ) $ (0.08 ) $ (0.15 ) $ (0.32 )
Media ContactOpowerCarly
Llewellynpr@opower.comorInvestor ContactICRGaro Toomajanian,
571-483-5200investor@opower.com
OPOWER, INC. (NYSE:OPWR)
Historical Stock Chart
From Jun 2024 to Jul 2024
OPOWER, INC. (NYSE:OPWR)
Historical Stock Chart
From Jul 2023 to Jul 2024