Adjusted EBITDA grows 17% in constant currency; New enterprise agreements signed in 2015 expected to exceed $100 million in future annual revenue
CHICAGO - InnerWorkings, Inc., the leading global marketing execution firm, today reported results for the three months ended June 30, 2015. For all Non-GAAP references, please refer to the Non-GAAP reconciliation table below for more information.
Second Quarter Highlights
- Revenue was $252.2 million as reported and $268.6 million in constant currency, reflecting 3% growth in constant currency over $260.3 million in the second quarter of 2014.
- Gross profit for the quarter was $59.0 million as reported and $62.9 million in constant currency, reflecting 7% growth in constant currency over $58.9 million in the second quarter of 2014.
- Non-GAAP Adjusted EBITDA was $10.1 million as reported and $11.1 million in constant currency, reflecting 17% growth in constant currency over $9.5 million in the second quarter of 2014.
- Non-GAAP diluted earnings per share were $0.04 on a reported basis and $0.05 in constant currency, compared to Non-GAAP diluted earnings per share of $0.04 in the second quarter of 2014.
- Non-GAAP adjusted operating cash flow was $7.8 million on a reported basis, compared to Non-GAAP adjusted operating cash flow of $6.4 million in the second quarter of 2014.
"With our most recent client wins, the new enterprise agreements we have signed so far in 2015 are expected to exceed $100 million in annual revenue once implemented," said Eric D. Belcher, Chief Executive Officer of InnerWorkings. "Our enterprise solution continues to resonate with Fortune 500 companies, which illustrates the growth opportunity in front of us."
New Enterprise Client Agreements
InnerWorkings has recently been awarded several new enterprise contracts, highlighting the broad range of its marketing execution capabilities:
- AstraZeneca, a global biopharmaceutical company that focuses on the discovery, development and commercialization of prescription medicines. Under this seven-year agreement, InnerWorkings will exclusively manage marketing print operations across North America utilizing three onsite teams based in Delaware, Maryland and Pennsylvania.
- The leading retailer and distributor of automotive replacement parts and accessories in the U.S. to manage all in-store marketing materials and direct mail for over 5,000 retail locations.
- A global leader of online commerce to manage branded packaging materials for all goods shipped to customers in the U.S. This solution is an extension of InnerWorkings' emerging packaging offering and capitalizes on the growing trend of shipments driven by e-commerce.
- A global, full-service events and engagement agency to execute marketing events for some of the most prominent brands at the most prestigious events around the world, starting with the 2016 Olympics in Brazil.
- The leading gaming and entertainment venue operator in Las Vegas with 19 properties offering casinos, restaurants, entertainment venues and conference spaces. The contract includes all marketing and operational materials, and represents InnerWorkings first enterprise agreement in the gaming industry.
- The largest and most prominent retailer of personalized gifts in the U.S. to manage in-store and at-home marketing efforts. By leveraging its VALO® technology platform, InnerWorkings will shorten delivery cycles of in-store marketing materials for over 600 retail locations.
- The leading provider of manufacturing and building materials in North America to manage marketing materials, point-of-sale displays and permanent fixtures for their residential division.
"We are pleased with our profit growth and margin expansion during the quarter," said Ryan K. Spohn, Interim Chief Financial Officer of InnerWorkings. "These improvements combined with our new business momentum keeps us on track to drive long-term leverage in the business."
The Company reaffirms its 2015 revenue guidance of 8% to 11% growth over 2014 in constant currency. The Company reaffirms its 2015 Non-GAAP Adjusted EBITDA guidance of $49 million to $51 million and Non-GAAP diluted earnings per share guidance of $0.25 to $0.27 in reported terms.