InnerWorkings Announces Q4 and Full-Year Financial Results
InnerWorkings, a leading global marketing execution firm based in Chicago, announced financial results for the three months and year ended Dec. 31, 2017.
"We had a strong finish to 2017 with a growth rate that exceeded our expectations,” said CEO Eric D. Belcher. “In addition, we've won several large new contracts in recent months, and we're well down the path on a number of exciting sales pursuits. This combination sets us up for strong growth in 2018."
Fourth Quarter 2017 Results
- Record gross revenue was $301.0 million in the fourth quarter, an increase of 11 percent compared with $270.4 million in the fourth quarter of 2016.
- Gross profit (net revenue) was $71.3 million, or 23.7 percent of gross revenue, in the fourth quarter, an increase of 4 percent compared to $68.7 million, or 25.4 percent of revenue, in the same period of 2016.
- Net income for the fourth quarter was $1.5 million, or $0.03 per diluted share, compared to $5.0 million, or $0.09 per diluted share, in the prior year period.
- Non-GAAP adjusted EBITDA was $14.6 million in the fourth quarter, compared to $15.7 million in the fourth quarter of 2016.
- Non-GAAP diluted earnings per share for the fourth quarter was $0.06, compared to $0.12 in the fourth quarter of 2016.
Full-Year 2017 Results and Recent Highlights
- Gross revenue was $1,136.3 million in 2017, an increase of 4 percent compared with $1,090.7 million in 2016.
- Gross profit (net revenue) was $278.3 million, or 24.5 percent of gross revenue, in 2017, a 6 percent increase compared to $263.5 million, or 24.2 percent of revenue, in 2016.
- Net income in 2017 was $19.0 million, or $0.35 per diluted share, compared to $4.4 million, or $0.08 per diluted share, in 2016.
- Non-GAAP adjusted EBITDA was $62.3 million in 2017, reflecting growth of 5 percent compared to $59.2 million in 2016.
- Non-GAAP diluted earnings per share for 2017 was $0.41, compared to $0.38 in 2016.
- Cash flow from operations was $16.1 million in 2017, compared to $10.5 million in the year before.
- InnerWorkings signed new client contracts during 2017 totaling $130 million of annual revenue at full run-rate. This growth is a blend of expansions with existing accounts as well as the addition of a number of first time clients.
- In 2018 to date, InnerWorkings has already signed several new client contracts totaling $41 million of annual revenue at full run-rate.
"Our expected growth in 2018 will generate meaningful operating leverage and free cash flow in 2018, giving us the ability to reinvest in our business on behalf of our clients, employees and shareholders," said Chip Hodgkins, interim chief financial officer of InnerWorkings.
"InnerWorkings has evolved its business over the past five years to be at the forefront of software, digital and other growing components of marketing execution,” added Rich Stoddart, incoming CEO. “I look forward to helping the company capitalize on its early lead in this emerging market."
InnerWorkings reaffirms the existing full-year 2018 guidance announced previously. The company expects 2018 annual gross revenue to range between $1,195 million and $1,230 million, representing growth of 5 percent to 8 percent compared to 2017. Non-GAAP adjusted EBITDA is expected to be between $74 million and $77 million in 2018, representing growth of 19 percent to 24 percent compared to 2017. The company forecasts 2018 non-GAAP diluted earnings per share to be $0.56 to $0.59, representing growth of 37 percent to 44 percent compared to 2017.