InnerWorkings Achieves Record FY Revenue of $1B; Wins Consumer Packaged Goods Contract
CHICAGO—February 13, 2015—InnerWorkings Inc. (NASDAQ: INWK), a leading global marketing execution firm, reported results for the fourth quarter and fiscal year ended Dec. 31, 2014. For all Non-GAAP references, please refer to the Non-GAAP reconciliation table at right for more information.
Fourth Quarter Highlights
- Revenue of $246.6 million, an increase of 2 percent year-over-year (4 percent on a constant currency basis).
- Record Non-GAAP Adjusted EBITDA of $12.5 million, an increase of 127 percent year-over-year (129 percent on a constant currency basis).
- Non-GAAP diluted earnings per share of $0.07 on a reported and constant currency basis, up from a $0.02 loss in the fourth quarter of 2013.
- Non-GAAP Adjusted Cash Flow of $3.6 million, compared to $27.1 million in the same period last year, primarily attributable to timing of accounts payable.
Fiscal Year Highlights
- Record revenue of $1.0 billion, an increase of 12 percent on a year-over-year basis (13 percent on a constant currency basis). Over two thirds of the revenue growth in 2014 was organic. Please refer to the revenue growth table below for more information.
- Record Non-GAAP Adjusted EBITDA of $42.8 million, an increase of 59 percent compared to $26.9 million in 2013 (60 percent growth on a constant currency basis).
- Non-GAAP diluted earnings per share of $0.20, an increase of 122 percent over 2013. Full year Non-GAAP diluted earnings per share on a constant currency basis were $0.21.
- Non-GAAP Adjusted Cash Flow of $(9.7) million, compared to $33.5 million in 2013, primarily attributable to timing of accounts payable.
"2014 was a very successful year for InnerWorkings as we drove double digit revenue growth again and improved our profitability profile significantly during the year,” said Eric Belcher, CEO of InnerWorkings. “We reached an important milestone as we crossed the one billion dollar revenue mark, and more importantly, we leveraged our newer capabilities, added depth to our global management team, and shifted our focus to long-term organic growth.”
Today, the Company announces a new four-year client agreement signed in January 2015 with a Fortune 500 consumer packaged goods company. With this addition, InnerWorkings is under long-term contracts with seven of the largest CPG companies in the world.
This win adds to an impressive roster of new clients launched in 2014, which includes Callaway, Energizer, FedEx, Novartis, Pizza Hut, Sanofi and Staples.
The North America segment accounted for 68 percent of revenue and international segments accounted for 32 percent in 2014, compared to a 74 percent/26 percent mix in 2013.
InnerWorkings also announced today that its Board of Directors authorized a share repurchase program. Under the program, InnerWorkings is authorized to repurchase up to $20 million of its outstanding common stock over the next two years. The timing and amount of any share repurchases will be determined based on market conditions, share price and other factors, and the program may be discontinued or suspended at any time. Repurchases will be made in compliance with SEC rules and other legal requirements.
“The share repurchase program gives us the option to capitalize on opportunities provided by the market to create additional shareholder value, while maintaining the flexibility to invest in our growth,” Belcher commented.
The Company expects 2015 annual revenue to range between $1.04 billion and $1.06 million, representing growth of 4 percent to 6 percent over 2014 (8 percent to 11 percent over 2014 on a constant currency basis). 2015 Non-GAAP Adjusted EBITDA is forecasted to be between $49 million and $51 million, representing growth of 14 percent to 19 percent over 2014. 2015 Non-GAAP diluted earnings per share, which exclude contingent liability impacts, are expected to be $0.25 to $0.27, representing growth of 25 percent to 35 percent over 2014.
Belcher concluded, “In the year ahead, we will continue our focus on driving organic growth by acquiring new customers and expanding existing relationships, while demonstrating increased operating leverage as we grow our profitability faster than the top-line. We are proud of the many new Fortune 500 clients that have adopted our solution, and we are very excited about the opportunity ahead.”
About InnerWorkings Inc.
InnerWorkings Inc. (NASDAQ: INWK) is the leading global marketing execution firm serving Fortune 500 brands across a wide range of industries. As a comprehensive outsourced enterprise solution, the Company leverages proprietary technology, an extensive supplier network and deep domain expertise to streamline the production of branded materials and retail experiences across geographies and formats. InnerWorkings is based in Chicago, employs approximately 1,500 individuals, and maintains 67 global offices in 30 countries. Among the many industries InnerWorkings serves are retail, financial services, hospitality, consumer packaged goods, not-for-profits, healthcare, food and beverage, broadcasting and cable and transportation.
Source: InnerWorkings Inc.