A Visit from Momentum

’Twas the night before launch, and all through the city,
not a boiler was upgraded — which seemed such a pity.
The buildings stood waiting with LL97 in sight,
with fines on the horizon and futures not bright.

The co-op boards huddled with worry and dread,
while questions of heat pumps and retrofits spread.
“Which pathway is right? What will contractors charge?
For Washington Heights and for buildings quite large?”

In Staten Island, a small co-op stirred with a hunch
that the answer might not need a whole capital crunch.
“Maybe controls and optimization will do the trick —
a targeted fix, and we fix it up quick.”

When up on the platform there arose such a feature,
a pathway comparison for every building and creature.
With baselines and benchmarks pulled fast from the cloud,
Momentum cut through all the noise, all the loud.

It laid out the scopes with a clarity rare —
not confusion and guesswork, but choices laid bare.
An RFP here, a bid comparison there,
with standardized pricing for everyone, fair.

“Now contractors! Now owners! Now boards, come align!
On dashboards! On data! On projects — let’s shine!
From the roof to the basement, from Bronx to the Bay,
let’s get these old buildings to launch day, today!”

Twenty years of real projects — the lessons, the knowing —
are baked in the platform and ready and glowing.
Soft costs reduced, and the rework made rare,
real price competition now floating in air.

For owners who need it, a clear decision to make.
For contractors bidding, a clean scope to take.
For buildings with small fines — a modest small fix.
For bigger exposures — the deep-upgrade mix.

And we heard it proclaimed as we shipped the last line,
ere the press event dawned and the city could shine:
“From ideas to projects — completed, not stalled.
Happy launch to New York, to its buildings, to all!”

Metrics

• Unique Buildings: Updates next week
• Annual Run Rate: $2.9M

Financials

We have closed out both March and Q1 - here’s a look at where we stand.

We’re making money! A year ago we were spending $416K more than we were bringing in. Today we have flipped that completely and are $141K ahead through Q1 and revenue has grown nearly 5X year-over-year.

Are we profitable now? On paper, we continue to be, yes. On an accrual basis (what we’ve earned, not just collected), net income is +$9,568 for March, and the annual run rate based on subscriptions is $2.9M. However, cash profitability is fragile. We collected 70% of invoiced revenue in March, but the goal is 85%-90%. Though uncollected revenue is current ~$293K in accounts receivable - it is real money we’ver earned but haven’t seen yet.

What does this mean for the business? The business is healthy, but not bulletproof yet. We still need to manage our spending; think carefully about how we hire and how each hire will impact our revenue goals; build our cash reserves to buffer ourselves from leaner cash revenue months and collect on our accounts receivables faster.

What’s ahead in Q2?

• Our projected monthly cash in from Willdan - ConEd will decrease by ~$20K starting in April. This has already been accounted for in the budget.
• We will receive our first quarterly payment from HPD, $200K - an important cash milestone for Q2.
• Tracking how many months in a row we break even or are profitable on a cash basis.

Monthly Metrics

Metric	Value	Takeaway
Revenue (YTD)	$765,241.14	YTD revenue is up 182% YoY
Transaction fees	$18,608 (2.43% of YTD revenue)	Consistent share of revenue MoM
Annual run rate	$2.91M (+0% MoM)	No increase expected - no new subscriptions in Mar
Cash	$525,095 (+5.92% MoM)	Cash increase is positive
YTD Cash In / Out	$803,145 in / $662,472 out	More money in than out = good
Accounts receivable	$293,378 (-85.7% MoM)	Collections improving
Net burn (monthly, accrual)	$9,568 (-89.8% MoM)	Positive - this represents a small profit
Net burn (YTD-to-last-month, cash)	$46,891 (-77% MoM)	Positive - this represents a small profit

Details:

• Cash The increase in cash on hand is positive and we want to see this increase over the coming months. The YTD cash in/cash out is also positive and reflects both the revenue growth and responsible spending; both of which are indicators of a healthy company.
• AR Collection is improving and all outstanding AR is current except for the Tower Road Construction invoice (~$11K), which represents a relatively small percentage of the total.

Current expenses by department

Department	Spend	Explanation of MoM Change
COGS	$19,718 (-6.9% MoM)	Decrease in consulting fees and payroll expenses
G&A	$66,886 (-24.1% MoM)	Decrease in compliance fees for SOC1
R&D	$146,207 (+27.6% MoM)	Expected increase in consulting fees and salary
Sales	$19,695 (-0.8% MoM)	Small changes in benefits and payroll expenses

Development

• Bug Count (P-0 and P-1): Just 2, and 1 is already in code review!

This Week’s Highs and Lows

• So much new code made it out, and more continues to be deployed! (JMB)
• March and Q1 books are closed - maintaining our efficient, tears to a SOC auditor’s eyes, process. (EP)
• We had to activate the “Reuben signal” on Monday to get ourselves out a 3h downtime. Lots of good lessons learned ahead of the launch, after which such event would become consequential. (FH)
• Got a better sense of WES customer success needs for NYCA from spending a day in their office this week (MZ)

Any missing highlights? Please share in Discord comments.

Crow’s Nest

Looking out for icebergs: What are the risks on the horizon that we’re watching for and navigating around?

Jason’s List

• Improving clarity around our roadmap and prioritization process–I’ve met a handful of times with a PM coach to help me, which I think helped a little up front. But I’m back in the cycle of dealing with near-term stuff, so it may be a while before I make a lot more progress on this.
• We may have won some minds, and we’re winning some wallets, but will we win their fingers? Which users will actually use our software instead of just looking for the outputs and expecting consultant-style service? Let’s see what happens when NYCA is launched–very soon!
• What is our moat in a world and industry where data wants to be free, especially when some of our largest customers are city and state agencies?
• Honing our delivery process AI is helping us write new code quickly, but we haven’t unblocked the whole flow. We need to automate more of the testing to keep quality and velocity up, while keeping in mind that we are humans who need rest. I feel like the process is getting ironed out this week, and we’re moving in a good direction.

François’ List

• We’ve substantially improved the pace of delivery of “contained” features, as in “Momentum only”, “Calcs only”, or “Data only” features. Can we do the same for “fusion” features that require baton passing, like rebate explanations, LL97 pathway determination, tariffs?

Repeats:

• To get ready for NYCA launch, we need to project ourselves to a near future were a lot of variables are multiplied by 10-100x. Max number of concurrent users. Size of database backups. Occurrences of Sentry issues. Probability of a malicious actor trying to make us look bad. Let’s be creatively paranoid and prepare the ship!
• We have a lot of “almost there” large features or complex clean-ups that need to land soon: EPA Portfolio Manager v2 (almost there), new BKB supporting buildings beyond Multi-Family (shipped!), Building Attribute Guesser for NYSERDA BDP (shipped!), improved tariff support, etc.

Erika’s List

• Global People Compliance is still top of mind. We want to ensure that everyone is hired and retained compliantly, no matter where they are. We want to avoid liability and tax surprises for the company, employees and contractors.
• Looking at our legal guidelines and making sure anyone internally that is working on a legal document or agreement, understands how we work with our lawyers and what we look for when reviewing. This will empower us to really understand our business and what we need to protect and what will put us at risk.

Marc’s List

• Making sure the NYCA team at WES gets enough TLC support to take full advantage of Momentum

On Deck for Next Week

• NYCA press event Monday!
• NYCA Launch Tuesday!
• Marc moderating a panel Tuesday on co-op decarb planning and participating in a conference fireside chat on retrofit data transparency Wednesday
• 1080 worth of 360s: Jon, Marc, and Mike
• Meeting on Friday with CPC and Willdan about the potential to view projects across the CFHF program and AMEEP. I’m excited to have some customer desire to explore this since many projects, especially affordable ones, stack mutliple incentives in order to make the numbers work. And I think this will be a great impetus to finally move the legacy CFHF code to the new programs framework and send the original code to a farm upstate.

Upcoming Releases

Release 121 (aka 2.16.2)

• Program logos
• Program welcome text
• Improved created RFP flow
• Project sharing improvements
• Co-op/condo board member registration flow (behind flag for now)
• Multiple improvements to security, reliability, and performance

Please Leave Feedback

Please note your reaction to this update in the Discord channel. It helps us to know what is resonating, what is unclear, etc. Thanks!

• What are your highlights / low-lights?
• Did we miss a highlight? Something else you want to react to?