InnerWorkings Q1 Revenue Dips

Top 40 distributor InnerWorkings (asi/168860) generated gross revenue of $267.4 million during the first quarter of 2017, the Chicago-based firm revealed Monday in an earnings statement. The sales tally represented a 1% decrease from the same quarter the prior year.

Meanwhile, InnerWorkings said that Q1 gross profit in 2017 reached $64.3 million – a 4% increase over 2016’s first quarter. Both non-GAAP diluted earnings per share and non-GAAP adjusted EBITDA also increased during the three months ending March 31, rising 66% (to $0.08) and 5% (to $12.3 million) respectively.

So far in 2017, InnerWorkings has earned additional work from new and existing clients. Collectively, it is expected to surpass $35 million in annual revenue at the full run-rate. The largest new client engagements are with Jaguar Land Rover and The Humane Society.

“The investments we have made to build our global capabilities and technology platform are paying off in a meaningful way,” said InnerWorkings CEO Eric D. Belcher. “We have won more new business year-to-date than we had at this time last year, and we expect 2017 to be another record year on the top and bottom line.”

Given the optimistic outlook, InnerWorkings is raising its guidance for 2017 non-GAAP diluted earnings per share to a range of $0.45 to $0.49, compared to a previous guidance range of $0.44 to $0.47. Guidance for gross revenue and non-GAAP adjusted EBITDA are unchanged. InnerWorkings expects gross revenue to range between $1.155 billion and $1.185 billion and non-GAAP adjusted EBITDA to be between $65 million and $68 million.

In February, InnerWorkings reported that it increased gross sales 6% in 2016 to $1.09 billion. With reported 2015 North American promotional product revenue of $147 million, InnerWorkings ranked 11th on Counselor’s most recent list of the Top 40 largest distributors in the ad specialty industry.