Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of demand response company EnerNOC, (ENOC) fell as much as 12% today after reporting earnings. Shares recovered late in trading, and ended the day with a 3.5% loss.
So what: First-quarter revenue was up 59.8%, to $52.5 million, but the company still lost $30.4 million, and burned through $17.7 million of free cash flow. Updated full-year guidance was also mixed, with non-GAAP earnings per share increasing slightly to $1.28-$1.40, but adjusted EBITDA reduced $2 million to $72 million-$76 million.
Now what: This is a seasonally weak quarter, so I wouldn't read too much into the loss in the quarter. I think the early reaction was probably overdone, and I don't see any major surprises. The key for EnerNOC will be continued growth and turning that expanded presence into profits in summer months. That's when we'll find out if the business plan is working as investors hope.
