InnerWorkings Revenue Up for Q2, New Enterprise Business Strengthens Growth
CHICAGO—August 8, 2013— InnerWorkings Inc., a leading global marketing supply chain company, has reported results for the three months ended June 30, 2013.
Quarterly Highlights:
- Revenue was $210.9 million, compared to $201.4 million in the second quarter of 2012.
- Non-GAAP Adjusted EBITDA was $5.4 million, compared to $11.9 million in the same period last year, due to a previously-announced loss of a portion of a significant client, lower inside sales profitability, and lower profitability in the EMEA region.
- GAAP diluted earnings per share were $0.04, compared to GAAP diluted earnings per share of $0.09 in the second quarter of 2012.
- Non-GAAP Adjusted Operating Cash Flow was $3.9 million, compared to Non-GAAP Adjusted Operating Cash Flow of $0.8 million in the second quarter of 2012.
- New organic enterprise account growth was $19.9 million in the second quarter.
"As expected, this wasn't a particularly strong quarter by our standards," said Joseph M. Busky, CFO of InnerWorkings. "However, we expect growth will accelerate in the second half of the year due to recent new enterprise wins, contributions from acquisitions, and the overall seasonality of our business."
Additional second quarter 2013 financial and operational highlights include the following:
- 77 percent of the company's revenues were generated from the enterprise channel, with the remaining 23 percent derived from the middle market channel.
- A major new enterprise agreement was announced with Mondelez, one of the world's largest snack companies. The long-term partnership encompasses $45 million of annual spending in Brazil and represents one of the largest agreements in the company's history.
- Other new client agreements were recently signed with a large publisher, as well as with a Fortune 1000 financial services firm, both headquartered in North America.
"We continue to add new blue-chip clients in many regions around the world, as evidenced most recently by the new commitment from Mondelez," noted Eric D. Belcher, CEO of InnerWorkings. "Further, our multinational clients are taking advantage of our new global scale by expanding with us into additional markets. This is a trend we expect will drive significant long-term growth for us."
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Revenue Growth - Comparing 2013 to 2012 |
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Q2 |
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YTD |
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$(MM) |
Q2 % |
$(MM) |
YTD % |
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Change |
Change |
Change |
Change |
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New Enterprise Account Growth |
$20 |
10% |
$38 |
10% |
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New Middle Market Growth |
$0 |
0% |
$2 |
1% |
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Same Customer Spend |
($8) |
-4% |
($14) |
-4% |
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Lost Customer Spending |
($8) |
-4% |
($8) |
-2% |
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Acquisitive Growth |
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$6 |
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3% |
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$8 |
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2% |
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Total Revenue Growth |
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$10 |
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5% |
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$25 |
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6% |
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Total Organic Revenue Growth (1) |
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$12 |
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6% |
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$25 |
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6% |
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(1) Organic Revenue Growth excludes Lost Customer Spending and Acquisitive Growth. |
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Outlook
The company is increasing its 2013 revenue guidance range from $900 to $930 million to $910 to $940 million, representing 14 to 18 percent growth over 2012. The company is reaffirming its 2013 GAAP EPS guidance of $0.45 to $0.50, which represents 10 to 22 percent growth over 2012 adjusted diluted earnings per share. Projected revenue and profit from recent acquisitions is expected to be offset by lower Inside Sales profitability and lower same-customer spending projections.
About InnerWorkings
InnerWorkings, Inc. (NASDAQ: INWK) is a leading global marketing supply chain company servicing corporate clients across a wide range of industries. With proprietary technology, an extensive supplier network and deep domain expertise, the company procures, manages and delivers printed materials and promotional products as part of a comprehensive outsourced enterprise solution. InnerWorkings is based in Chicago, employs approximately 1,400 individuals, and maintains 49 global offices. Among the many industries InnerWorkings services are: retail, financial services, hospitality, non-profits, healthcare, food and beverage, broadcasting and cable, education, transportation and utilities.
Source: InnerWorkings.
