InnerWorkings Reports Record, 12.6 Percent Q3 Sales Growth; Fortune 1000 Wins
CHICAGO—November 6, 2015—InnerWorkings, a global marketing execution firm, announced record revenue and record non-GAAP earnings for the three months ended Sept. 30, 2015.
Third Quarter Highlights
- Revenue was $264.7 million as reported and $283.3 million in constant currency, reflecting 12.6 percent growth in constant currency compared with $251.7 million in the third quarter of 2014.
- Gross profit for the quarter was $63.6 million as reported and $68.0 million in constant currency, reflecting 19.1 percent growth in constant currency compared with $57.1 million in the third quarter of 2014.
- Non-GAAP Adjusted EBITDA was $17.6 million as reported and $19.4 million in constant currency, reflecting 57.8 percent growth in constant currency over $12.3 million in the third quarter of 2014.
- Non-GAAP diluted earnings per share were $0.11 on a reported basis and $0.14 in constant currency, compared to Non-GAAP diluted earnings per share of $0.07 in the third quarter of 2014.
- Non-GAAP adjusted operating cash flow was $(9.5) million on a reported basis, compared to non-GAAP adjusted operating cash flow of $(11.3) million in the third quarter of 2014.
"The record-breaking results we announced today illustrate the momentum we are seeing in our strategy to grow our enterprise business," Eric Belcher, CEO of InnerWorkings said. "Including the two new Fortune 1000 client wins that we're announcing today, the new enterprise accounts signed during this calendar year are expected to deliver over $115 million in annual revenue once implemented. We are very pleased with the significant growth in our enterprise accounts and expect a strong finish to the year."
InnerWorkings continues to win new enterprise contracts and has signed significant contract renewals and scope expansions with several of its largest clients. Two new clients include:
- A Fortune 1000 services provider to businesses and consumers that signed a multi-year agreement through which InnerWorkings will provide marketing execution services, including direct mail and marketing collateral, to support the company's business in North America.
- A Fortune 1000 grocery chain with 160+ locations that signed a multi-year agreement through which InnerWorkings will execute marketing activities, including direct mail, loyalty programs, point-of-sale displays and circulars.
"The strong earnings and top-line growth achieved in the quarter underscore the strength of InnerWorkings' service offerings, the ongoing commitment of our teams and our discipline in ensuring we maintain the appropriate margins to mitigate fluctuations in international currencies," Jeffrey Pritchett, chief financial officer of InnerWorkings noted. "We remain on track to achieve our growth targets and deliver earnings within the previously articulated ranges."
The company reaffirms its revenue guidance of 8 percent to 11 percent growth over 2014 in constant currency. The company also reaffirms its 2015 non-GAAP Adjusted EBITDA guidance of $49 million to $51 million and non-GAAP diluted earnings per share guidance of $0.25 to $0.27 in reported terms.
InnerWorkings, Inc. is a 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 1,700 individuals and maintains 62 global offices in 37 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.