InnerWorkings Reports Q3 Results with Record Gross Revenue, Profit Growth
InnerWorkings Inc., Chicago, announced financial results for the three months ended Sept. 30, 2017.
Financial and Business Highlights
- Record gross revenue was $288.4 million in the third quarter, an increase of 3 percent, compared with $280.0 million in the third quarter of 2016. Year-to-date gross revenue was $835.3 million, a 2 percent increase compared with $820.3 million in the prior period.
- Record gross profit (net revenue) was $72.5 million, or 25.1 percent of gross revenue in the third quarter, a 7 percent increase compared to $67.8 million, or 24.2 percent of gross revenue, in the same period of last year. Year-to-date gross profit (net revenue) was $207.0 million, or 24.8 percent of gross revenue, an increase of 6 percent compared to the prior-year period.
- Net income was $7.5 million or $0.14 per diluted share in the third quarter, compared to net income of $4.3 million or $0.08 per share in the third quarter of 2016. Year-to-date net income was $17.5 million or $0.32 per diluted share, compared to net income (loss) of $(0.7) million or $(0.01) per diluted share in the same period of 2016.
- Record non-GAAP diluted earnings per share was $0.15 in the third quarter, an increase of 46 percent compared to $0.11 in the third quarter of 2016. Year-to-date non-GAAP diluted earnings per share was $0.35, a 34 percent increase compared to $0.26 in the same period of 2016.
- Record non-GAAP adjusted EBITDA was $18.8 million in the third quarter, reflecting 11 percent growth as compared to $16.9 million in the third quarter of 2016.
- Year-to-date non-GAAP adjusted EBITDA was $47.7 million, an increase of 10 percent compared to $43.4 million in the same period of 2016.
- Non-GAAP adjusted EBITDA as a percentage of gross profit (net revenue) was 25.9 percent in the third quarter and 23.0 percent year to date, compared to 25.0 percent in the third quarter of 2016 and 22.3 percent for the first nine months of 2016.
- InnerWorkings Inc. has continued to sign new enterprise contracts in recent months, bringing the year-to-date cumulative total to more than $100 million of annual gross revenue at full run-rate.
- The largest of the new wins during the third quarter is a partnership with a Detroit-based financial services firm to manage the company's direct marketing and creative services execution.
"The investments we have made to build our global capabilities and technology platform are paying off in a meaningful way," said Eric D. Belcher, CEO of InnerWorkings Inc. "Our large backlog of new business awards and pipeline of pursuits position us well for 2018 and beyond."
"We are continuing to improve our mix of high value-add services leading to stronger net revenue and profit performance,” added Jeffrey P. Pritchett, chief financial officer of InnerWorkings Inc. “We expect 2017 to be another record year on both the top and bottom line."
The company is raising its 2017 guidance for non-GAAP diluted earnings per share to be $0.47 to $0.50, compared to prior guidance of a range of $0.46 to $0.49. InnerWorkings Inc. is maintaining its 2017 gross revenue guidance to range between $1.115 billion and $1.145 billion and non-GAAP adjusted EBITDA to be between $65.0 million and $68.0 million.
For more information, visit www.inwk.com.
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