THG Energy Solutions Revenue, Valuation & Funding (2024)

THG Energy Solutions generated an estimated $5.4M in annual revenue in 2024.

THG Energy Solutions reported approximately $2 million in annual recurring revenue for full-year 2022, up from roughly $900,000 the prior year, representing growth of more than 100 percent year over year on a recurring basis. By the first quarter of 2023, the company was generating approximately $200,000 per month in recurring revenue, compared with roughly $125,000 per month a year earlier.

THG Energy Solutions had approximately 1,000 active paying customers as of early 2023, with 20,000 active utility meters billed at $5 per meter per month. The average active customer therefore had roughly 20 active meters under management, though Frey noted the company has access to a much broader base: the platform tracks or has visibility into approximately 300,000 utility accounts across more than 10,000 customer relationships, leaving an addressable but not yet fully deployed opportunity of 250,000 to 300,000 additional accounts.

The company prices its core SaaS platform at $5 per utility meter per month. At 30 meters per customer, the average customer would pay approximately $150 per month, or $1,800 per year, for the base platform. Frey confirmed the $5 per meter per month figure and the 30-meter average across the broader account universe. The platform covers electricity, natural gas, water, waste, and recycling accounts, and additional services around advanced energy management and demand response are available beyond the base tier. A free tier was not mentioned in the interview.

THG Energy Solutions generates revenue through two recurring streams. The first is the core SaaS platform, billed at $5 per active utility meter per month, which produced approximately $100,000 per month as of early 2023 based on 20,000 active meters. The second stream covers device integration and advanced energy management, including demand response products, which Frey described as contributing a similar but slightly smaller monthly amount, bringing the combined recurring run rate to approximately $200,000 per month in the first quarter of 2023.

The company distributes its platform primarily through 35 channel partners, which are energy suppliers and consultants that private-label the solution and bring their existing commercial customer portfolios to the platform. Frey described this as a value-added reseller model that allows channel partners to expand their revenue and deepen client relationships while THG Energy gains access to large pools of pre-existing utility account data.

Frey confirmed the company was not yet profitable as of March 2023, with a burn rate of approximately $100,000 per month, which he said was being reduced as revenue growth accelerated. He said profitability was visible within the next year. The company's capital partner, the George Kaiser Family Foundation, has continued to provide support beyond the initial seed round. Gross margin, churn, LTV, CAC, and net revenue retention were not discussed in the interview. The ARPU on active meters is $5 per meter per month, and with an average of 30 meters per account across the broader universe, the implied account-level ARPU is approximately $150 per month, though the active customer base currently averages closer to 20 meters per account based on 20,000 meters across roughly 1,000 paying customers.

THG Energy Solutions had 30 full-time employees as of the March 2023 interview. Twenty of those employees are based in Tulsa and focus on data management. The remaining approximately eight employees are based in Austin and concentrate on engineering, including integration of smart meter data and distributed energy resources.