Opower sets IPO price range at $17 to $19, could raise $110M

Energy software company Opower intends to sell 6.1 million shares at a range of $17 to $19 per share during its planned upcoming IPO, it said Monday. At the mid-point of that price range, Opower could raise $110 million in the offering; the company is also offering another 915,000 shares to underwriters. Opower made the disclosure in an updated S-1 filing on Monday.

Founded in 2007 by entrepreneurs Alex Laskey and Dan Yates, Opower works with utilities to make energy efficiency products like itemized energy bills, emailed energy efficiency tips, and thermostat software. The company is essentially a big data and behavior analytics play, and Opower uses utility energy consumption data to create ways to convince utility customers to reduce their energy consumption. Earlier this month the company launched the fifth version of its software.

Honeywell & Opower smart thermstat website

Honeywell & Opower smart thermstat website

Opower’s revenues are growing, and it’s continuing to grow its headcount and customer list. The company has 465 employees and 133 of those are in sales. The sales cycle to bring in utility customers is pretty long, and a lot of big utility customers make up a significant portion of Opower’s revenue. Its ten largest customers represented 61 percent of its revenue.

However Opower is still not profitable. In 2013 the company generated revenue of $88.70 million up from $51.76 million in 2012, but lost $14.16 million in 2013, a bigger loss than its $12.33 million loss in 2012.

When the company goes public it will be a big win for the founders, Laskey and Yates, and its investors NEA, MHS, Accel and Kleiner Perkins.