Company continues strong momentum with 27% quarterly revenue growth and record new enterprise account growth
CHICAGO - InnerWorkings, Inc., a leading global marketing supply chain company, today reported results for the three months ended September 30, 2012.
- Revenue of $199.8 million, an increase of 27% compared to $157.8 million in the third quarter of 2011. Organic revenue growth in the quarter was 19%.
- Record new enterprise account growth of $29 million, an increase of 18% compared to the third quarter of 2011. Year-to-date, new enterprise account growth has reached $77 million, an increase of 17% over the same period last year. Please refer to the revenue growth table below for more information.
- Non-GAAP Adjusted EBITDA was $11.3 million, an increase of 21% compared to $9.4 million in the year-earlier period. Please refer to the non-GAAP reconciliation table below for more information.
- Operating income was $7.6 million, an increase of 28% compared to $5.9 million in the year-earlier period. Excluding proceeds from the sale of Echo Global Logistics stock in the period, non-GAAP Earnings per Diluted share in the third quarter of 2012 were $0.09 compared to $0.07 per diluted share in the third quarter of 2011. Please refer to the non-GAAP reconciliation table below for more information.
- Year-over-year enterprise revenue growth was 32% and middle market revenue growth was 12%.
- Company expanded its Brazilian market presence with the opening of São Paulo office in July to support multiple global consumer packaged goods customers in the region.
"We hit two significant milestones this quarter. First, we signed yet another large client contract, our fourth major enterprise deal in the last twelve months. Second, our inside sales team secured their 1,000th middle market business client," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "Given this recent success, we believe we are well positioned to maintain our momentum in 2013 and beyond."
Additional third quarter 2012 highlights include the following:
- 81% of the Company's revenue was generated from domestic sales, while 19% was derived from international sales activity.
- Enterprise clients accounted for 75% of sales with middle market clients accounting for 25% of sales.
- As of September 30, 2012, the Company had an outstanding balance of $74 million on its $150 million bank credit facility and retained cash and short-term investments of $9.5 million.
- "We continue to execute against our strategy while investing to support our growth," said Joseph M. Busky, Chief Financial Officer. "We are able to leverage our model across the globe which provides us with significant organic growth opportunities."
The Company is maintaining its previously stated 2012 guidance of $780 million to $810 million in revenue and $0.42 to $0.45 in earnings per share.
A conference call will be broadcast live on Thursday, November 8, 2012 at 4:30 p.m. Central Time (5:30 p.m. Eastern Time). The live webcast discussion, which will include a Q&A session, will be hosted by Eric D. Belcher, Chief Executive Officer, and Joseph M. Busky, Chief Financial Officer.
To access the conference call by telephone, interested parties may dial (877) 771-7024. Interested parties are also invited to listen to the live webcast by visiting the "Events & Presentations" section of InnerWorkings' website at investor.inwk.com/events.cfm.