InnerWorkings Registers 41 Percent Adjusted EBITDA Growth in Q3, Success in Cross-Selling
CHICAGO—November 6, 2014—InnerWorkings Inc. (NASDAQ: INWK) has reported results for the three months ended Sept. 30, 2014. For all non-GAAP references, please refer to the non-GAAP reconciliation table here for more information.
- Revenue of $251.7 million, an increase of 8 percent compared to $232.6 million in the third quarter of 2013.
- Non-GAAP Adjusted EBITDA of $12.3 million, an increase of 41 percent compared to Non-GAAP Adjusted EBITDA of $8.7 million in the third quarter of 2013.
- Non-GAAP diluted earnings per share of $0.07, an increase of 40 percent compared to Non-GAAP diluted earnings per share of $0.05 in the third quarter of 2013.
- Non-GAAP Adjusted Operating Cash Flow of $(11.3) million, compared to Non-GAAP Adjusted Operating Cash Flow of $1.6 million in the third quarter of 2013.
"Our consistent growth and solid momentum continued in the third quarter as we landed major new client contracts, underscoring our opportunity within a large and underpenetrated market,” said Eric Belcher, CEO of InnerWorkings. “We also continued to grow both globally and through new service offerings with our existing clients. We had success in cross-selling our new retail displays and product packaging solutions and we look forward to rolling them out with additional clients.”
Additional financial and operational highlights include the following:
- Organic enterprise account growth was $19 million in the third quarter.
- Among several new enterprise agreements signed during the quarter, the most significant was with one of the world’s largest office supply retailers to manage in-store and corporate marketing materials.
- The North America segment accounted for 66 percent of revenue and international segments accounted for 34 percent, compared to a 70 percent / 30 percent mix in the third quarter of 2013.
The Company updated and narrowed its 2014 revenue guidance to $1 billion to $1.01 billion, which reflects 12 to 13 percent growth over 2013. 2014 Non-GAAP diluted earnings per share guidance was also updated to $0.20 to $0.23, compared to $0.09 in 2013.
“We’re delivering on our commitment to accelerate our bottom-line results, generating meaningful Adjusted EBITDA growth in each of the first three quarters this year,” said Joseph Busky, CFO of InnerWorkings. “Our updated outlook reflects foreign exchange impacts from our growing international business, as well as some ramp-up costs related to our large new enterprise partnership.”
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, IL, 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.