InnerWorkings Reports Second-Quarter Financials

Top 40 distributor InnerWorkings (asi/168860) announced last week that its revenues in the second quarter reached $268.6 million, an increase of 3% in constant currency over the same time period last year. The company also said that its gross profits grew to $62.9 million in the quarter, reflecting a 7% jump over 2014’s second quarter. Halfway through 2015, InnerWorkings further reaffirmed its full-year 2015 revenue guidance of growth between 8% and 11%.

"We are pleased with our profit growth and margin expansion during the quarter," said Ryan 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 attributed its growth so far this year and in recent years to enterprise client accounts that it has recently won. Companies like AstraZeneca, Things Remembered, and Gannett have signed marketing partnership agreements with the company this year, which have InnerWorkings providing them with everything from print and packaging products to point-of-purchase signage and promotional products.

"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 Belcher, CEO of InnerWorkings. "Our enterprise solution continues to resonate with Fortune 500 companies, which illustrates the growth opportunity in front of us."

While InnerWorkings doesn’t break out its promotional products revenue in its quarterly filings, the company ranks number 11 on Counselor’s Top 40 after reporting 2014 North American ad specialty sales of $140 million, a 22% increase over 2013.