EnerNOC, Inc. (EnerNOC) has reported revenues of $106.1 million for the year-end 2008, up 74%, compared with the revenues of $60.8 million in the previous year-end. It has also reported a net loss of $36.7 million, or $1.88 loss per share, for the year-end 2008, compared with the net loss of $23.6 million, or $1.80 loss per share, in the previous year-end.

Financial Summary

Revenues:

Revenues for the fourth quarter of 2008 were $19.7 million, compared with $19.7 million in the year- ago quarter.

Cost of Revenues:

Cost of revenues for the fourth quarter of 2008 was $12.1 million, compared with $12.7 million in the year- ago quarter, down $0.6 million, or 5%. Cost of revenues for the year ended December 31, 2008 was $64.8 million, compared with $38.9 million for the year ended December 31, 2007, up $25.9 million, or 66%.

Gross Profit/Gross Margin:

Gross profit for the fourth quarter of 2008 was $7.6 million, compared with $7.0 million in the year- ago quarter, up $0.6 million, or 9%. Gross profit for the year ended December 31, 2008 was $41.3 million, compared with $21.9 million for the year ended December 31, 2007, up $19.4 million, or 89%. Gross margin was 38.6% for the fourth quarter of 2008 and 38.9% for the year ended December 31, 2008, compared with 35.5% and 36.0%, respectively, in the year- ago quarter.

Operating Expenses:

Operating expenses for the fourth quarter of 2008 were $19.7 million, compared with $16.5 million in the year- ago quarter, up $3.2 million, or 20%. Total operating expenses for the year ended December 31, 2008 were $78.5 million (including $10.4 million of non-cash stock-based compensation expense) compared with $48.2 million (including $7.6 million of non-cash stock-based compensation expense) for the year ended December 31, 2007, up $30.3 million, or 63%. The company improved its operating leverage throughout the year, as evidenced by an increase in megawatts under management per full-time employee to 6.0 as of December 31, 2008, compared with 4.4 as of December 31, 2007.

Net Loss – GAAP Results:

GAAP net loss for the fourth quarter of 2008 was $12.2 million, or $0.61 per basic and diluted share, compared with the net loss of $9.0 million, or $0.48 per basic and diluted share, in the year- ago quarter. GAAP net loss for the year ended December 31, 2008 was $36.7 million, or $1.88 per basic and diluted share, compared with the net loss of $23.6 million, or $1.80 per basic and diluted share, for the year ended December 31, 2007.

Non-GAAP Results:

Excluding stock-based compensation charges and amortization of intangibles, non-GAAP net loss for the fourth quarter of 2008 was $9.0 million, or $0.45 per basic and diluted share, compared with the non-GAAP net loss of $6.6 million, or $0.35 per basic and diluted share, in the year- ago quarter. Non-GAAP net loss for the year ended December 31, 2008 was $25.2 million, or $1.29 per basic and diluted share, compared with the non-GAAP net loss of $13.7 million, or $1.05 per basic and diluted share, for the year ended December 31, 2007.

Cash and Cash Equivalents:

As of December 31, 2008, the company had cash and cash equivalents totaling $60.8 million, up $7.5 million from cash and cash equivalents as of September 30, 2008, and down $9.5 million from cash and cash equivalents as of December 31, 2007.

Business Update

EnerNOC’s 2008 business highlights include:

Dispatching emergency demand response resources in its network over 100 times during 2008, delivering performance that averaged over 100% during the year, based on nominated versus delivered capacity.

Nearly doubling its demand response megawatts under management from around 1,100 as of December 31, 2007 to over 2,050 as of December 31, 2008.

More than doubling its commercial, institutional, and industrial demand response customer base from around 800 as of December 31, 2007 to over 1,650 as of December 31, 2008, and nearly doubling the number of customer sites in its demand response network from around 2,200 as of December 31, 2007 to around 4,000 as of December 31, 2008.

Company Update

Subsequent to the end of the fourth quarter of 2008, the company:

Signed a three-year demand response contract with Salt River Project (SRP) to provide around 50 megawatts (MW) of capacity in SRP’s Arizona service territory.

Signed an eight-year demand response contract with Xcel Energy, Inc. (Xcel Energy) to provide around 44 MW of capacity in Xcel Energy’s Colorado service territory.

Signed an energy efficiency contract with a Fortune 50 company to deliver guaranteed energy cost reductions through its proprietary monitoring-based commissioning application.

Increased megawatts under management by around 500, an amount of which resulted from sales efforts in the PJM Interconnection region, bringing the company’s total megawatts under management as of the date of this release to over 2,500.

The fourth quarter marked a strong conclusion to an outstanding 2008, a year in which more and more organizations identified energy savings as a top priority. We nearly doubled our megawatts under management and more than doubled our customer base in 2008 relative to 2007, said Tim Healy, EnerNOC’s chairman and chief executive officer. We believe that we are well positioned to generate positive cash flow from operations in the second half of 2009, and to deliver positive earnings for the year ending December 31, 2010.

One year ago, we expressed confidence in our ability to achieve specific revenue, gross margin, and megawatt growth targets in 2008, and also provided insight into our expected operating expenses and operating leverage, Healy added. I am pleased to report that we achieved every component of that guidance.