InnerWorkings Reports Revenue Growth and Sales Force Additions in Q1
Press release from the issuing company
Chicago, IL, May 9, 2007 – InnerWorkings, Inc., a leading
provider of print procurement solutions to corporate clients in the United
States, today reported record results for the three months ended March 31,
* Revenue grew 163 percent versus the first quarter of 2006 to a record
* Operating income rose 177 percent to $3.8 million, up from $1.4 million in
the first quarter of 2006.
* Year-over-year enterprise revenue increased 113 percent to $35 million.
* During the quarter the Company added seven new enterprise clients.
* The Company increased its sales force through the addition of 12 new
account executives during the quarter for a total of 163.
* Diluted earnings per share were $0.05.
Revenue for the Company's first quarter was $58.9 million, an increase of
163 percent compared to revenue of $22.4 million in the first quarter of
2006. Operating income was $3.8 million, an increase of 177 percent from
$1.4 million during the same quarter of 2006. Operating income was 6.4
percent of revenue during the first quarter, up from 6.1 percent during the
same quarter of the prior year.
For the three months ended March 31, 2007, net income was $2.7 million, an
increase of 222 percent from $0.8 million during the first quarter of 2006.
For the quarter, diluted earnings per share were $0.05.
“Our focused growth produced outstanding results, particularly given that
the first quarter is not seasonally our strongest,” stated Steve Zuccarini,
Chief Executive Officer of InnerWorkings. “The results indicate that our
team continues to execute on our strategy, strengthening customer
relationships and increasing our presence in the marketplace. During the
quarter we had seven new enterprise wins, and we continue to see extremely
positive results in the strategic investments we have made.”
“While we continue to invest and add staff to build our business and capture
market share, profitability remains a core objective. Our margins improved
over the first quarter of 2006 and were in line with our expectations,”
stated Nick Galassi, Chief Financial Officer of InnerWorkings. “At the same
time, we’re encouraged by our integration efforts to date and the resulting
efficiencies that have been realized.”
Additional first quarter 2007 financial and operational highlights include
* For the first quarter of 2007, 60 percent of the Company’s revenue was
generated from sales to enterprise clients, with the remaining 40 percent
coming from transactional clients.
* The Company had a cash and marketable securities balance of $66.0 million
as of March 31, 2007.
* The Company’s balance sheet contained no debt as of March 31, 2007.
* In March 2007, the Company acquired Spectrum Printing Systems, a leading
West Coast provider of print management services. Prior to its acquisition,
Spectrum had five sales representatives and generated revenue of $12.9
million in 2006. Spectrum contributed $1.0 million in revenue in the first
quarter of 2007.
The Company continues to anticipate revenue for fiscal year 2007 in the
range of $260 million to $280 million with resulting net income and diluted
earnings per share in the ranges of $16.0 million to $17.0 million and $0.30
to $0.33, respectively. The Company’s diluted earnings per share reflect the
new capital structure as of its IPO and follow-on offering.
“We’re very proud of our team’s exceptional performance to start off the
year, and we continue to have confidence in our short- and long-term
prospects,” Zuccarini concluded. “Our sales pipeline is as robust as it has
ever been, and we believe there remains abundant opportunity in the market
for our model.”
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