InnerWorkings (asi/168860) has announced that revenue in the first quarter of 2016 reached $271.1 million, an increase of 12% compared to $242.1 million in the first quarter of 2015. Gross profit was $61.9 million (or 22.9% of revenue) up 12.5% from $55.1 million (22.7% of revenue) in the same quarter last year.
“InnerWorkings is off to a very strong start in 2016 in terms of profitable organic growth and new contracts signed,” said CEO Eric D. Belcher in an official statement. “By leveraging our technology, breadth of capabilities and strong reputation, we are on track to achieve our financial targets in 2016 while continuing to deliver greater value for large, marketing-intensive companies globally.” InnerWorkings previously reported 9.3% growth in constant currency year-over-year for 2015.
In the first quarter of 2016, non-GAAP adjusted EBITDA reached $12.6 million, compared to $9.5 million in the first quarter of 2015, an increase of 32.5%. Non-GAAP diluted earnings per share were $.06, an increase of 112.2% from $.03 a year ago.
GAAP net loss per share was $.04 and GAAP net loss was $2.1 million, primarily as a result of an after-tax charge of $3 million related to an increase of $1.9 million in the company’s earnout obligation due to the strong performance of two acquired companies, as well as to a global realignment strategy announced in December 2015. InnerWorkings expects the realignment to be largely complete by the end of the second quarter of 2016, resulting in at least $3 million in profit growth during 2016 and $5 million to $6 million annually thereafter.
InnerWorkings also reported that it has been awarded several new enterprise contracts in 2016, which are expected to exceed $30 million of annual revenue at full run-rate.
“We succeeded in growing the top line while managing our cost structure to achieve meaningful operating leverage in the first quarter,” said CFO Jeffrey P. Pritchett, in an official statement. “We expect to achieve additional margin improvement as we move through the year, and to increase operating leverage beyond 2016 as we on-board a growing list of new enterprise clients and continue to expand our partnerships with current clients.”
InnerWorkings expects 2016 annual revenue to range between $1.06 billion and $1.08 billion, non-GAAP adjusted EBITDA to be between $58 million and $62 million, and non-GAAP diluted earnings per share to be between $0.30 to $0.33.