I didn't listen to the call yet but the report looks very good. I'm not suprised.
The other day in the Baird Conference, Healy gave a pretty tight strategic overview of the business. He focused on market size, current penetration, and the resulting size of the opportunity -- by offering (i.e. DR, software margins, etc) and market (US vs Int'l).
He said the total market for intelligent energy solutions (Enernoc's scope -- DR, efficiency and acquisition) will be $10-15Billio in 2016. That leaves a heck of a lot of room for growth.
International adoption is growing.
Software margins (Enernoc's) are growing. They've doubled the number of software customers this year from roughly 100 to 200, and the software margin business is incremental to the core businesses.
In 2010, Enernoc had no international business. In 2013, International is 20% of the business and growing fast.There are several unique situations, like the retirement of the nuclear plants in Japan (and resulting loss of generation), that make for the accelerated acceptance and develolpment of capacity markets.
Looking back to Domestic DR, Healy spoke about there being over 3,000 utilities in the US - about 300 large ones and 2,700 or so smaller ones - local generators, co-ops, etc. Enernoc is the #1 player in the market, and currently only works with a handful of utilities.
So penetration is currently low, and DR acceptance is proliferating (evidence the Public utility Commission decision in Texas two weeks ago to create capacity markets).
Finally, he spoke about the software market Enernoc is developing and how it's 2-3X the size of the domestic Demand Response market. Again - incremental to the current core business (upon which the current pps and multiple are based).
In my view, Enernoc is breaking out/upward to a new level here. Strategically, technologically, marketing-wise and financially.