InnerWorkings Reports Record Growth
Results Strengthened By New Deals With Several Clients
Chicago-based Top 40 distributor InnerWorkings (asi/168860) has announced its total second-quarter sales increased 23% to $260.3 million – a record period of gains for the firm. Organic enterprise account growth reached $27 million in Q2, a 13% rise year-over-year. “A large portion of this growth came from expanding our relationships with several of our long-standing Fortune 500 customers,” said Eric Belcher, CEO of InnerWorkings.
The company’s Q2 results were strengthened by new deals with several clients, including pharmaceutical firm Sanofi, publisher Newsday and spirits brand Edrington. InnerWorkings’ North American segment accounted for 70% of its revenue, while international segments generated 30% of sales. A year ago, only 23% of company revenues were gained abroad in Q2.
“Our international regions continue to generate strong organic growth, which positions us well for improved EBITDA margin in the second half of the year,” said Joseph M. Busky, InnerWorkings’ CFO.
InnerWorkings has reaffirmed its full-year outlook, forecasting 2014 sales of $965 million to $1 billion, reflecting growth of between 8% and 12%. The company is expecting non-GAAP diluted earnings per share of $0.23 to $0.27, compared to $0.09 last year. Still, markets were anticipating an even better full-year performance, which led InnerWorkings’ (NASDAQ: INWK) stock to dip 3.6% in late Wednesday trading.
InnerWorkings, which did not break out Q2 promotional products revenues in its earnings statement, reported 2013 North American ad specialty sales of $115 million, a year-over-year increase of just under 1%.