InnerWorkings Inc. Reports Increase in Revenue for Q2
InnerWorkings Inc., Chicago, announced financial results for the three months ended June 30, 2017.
Financial and Business Highlights
- Gross revenue was $279.5 million in the second quarter, an increase of 4 percent compared with $269.2 million in the second quarter of 2016. Year-to-date gross revenue was $546.9 million, a 1 percent increase compared with $540.3 million in the prior period.
- Gross profit (net revenue) was a record $70.2 million, or 25.1 percent of gross revenue in the second quarter, an 8 percent increase compared to $65.1 million, or 24.2 percent of gross revenue, in the same period of last year. Year-to-date gross profit (net revenue) was $134.5 million, or 24.6 percent of gross revenue, an increase of 6 percent compared to the prior-year period.
- Net income was $4.5 million or $0.08 per diluted share in the second quarter, compared to a net loss of $2.3 million or $0.04 per share in the second quarter of 2016. Year-to-date net income was $10.0 million or $0.18 per diluted share, compared to a loss of $5.0 million or $0.09 per diluted share in the same period of 2016.
- Non-GAAP diluted earnings per share was $0.12 in the second quarter, an increase of 11 percent compared to $0.11 in the second quarter of 2016. Year-to-date non-GAAP diluted earnings per share was $0.20, a 30 percent increase compared to $0.15 in the same period of 2016.
- Non-GAAP adjusted EBITDA was $16.6 million, reflecting 13 percent growth as compared to $14.8 million in the second quarter of 2016. Year-to-date non-GAAP adjusted EBITDA was $28.9 million, an increase of 9 percent compared to $26.5 million in the same period of 2016.
- InnerWorkings Inc. has continued to sign new enterprise contracts in recent months, bringing the year-to-date cumulative total to more than $75 million of annual gross revenue at full run-rate.
- The largest of the new wins is an expansion of the company's long-term business relationship with a global spirits producer, supporting its expansive brand portfolio across Latin America.
"Our second quarter results reflect strong execution of our strategy," said Eric D. Belcher, CEO of InnerWorkings Inc. "We continue to win more business with new and existing clients on the strength of our global capabilities and our technology. Our business is improving its mix of high value-add services leading to stronger bottom-line performance."
"We continue to see robust growth in net revenue, which we believe is the most important sales growth indicator for our business," said Jeffrey P. Pritchett, chief financial officer of InnerWorkings Inc. "Our net revenue and earnings outlook remain on track with additional profit improvement expected in the second half of the year, though we have moderated our gross revenue expectations for the second half of 2017."
The company is revising its guidance for 2017 gross revenue. InnerWorkings Inc. expects 2017 annual gross revenue to range between $1.115 billion and $1.145 billion, compared to previous guidance of a range of $1.155 and $1.185 billion. The reduction in expected gross revenue is offset by higher expected profitability, and therefore the company is maintaining its guidance for non-GAAP adjusted EBITDA to be between $65.0 million and $68.0 million, and raising the low end of its non-GAAP diluted earnings per share guidance to be $0.46 to $0.49, compared to previous guidance of $0.45 to $0.49.
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