InnerWorkings Reports Preliminary Select First Quarter Results

InnerWorkings, Inc. (NASDAQ: INWK), the leading global marketing engineering firm, today announces preliminary select financial results for the first quarter of 2020.

Preliminary First Quarter 2020 Results

• Gross revenue was $261.4 million in the first quarter, compared with $267.2 million in the first quarter of 2019.
• Gross profit was $63.4 million, or 24.3% of gross revenue, in the quarter, a 2% increase compared to $62.0 million, or 23.2% of gross revenue, in the first quarter of 2019.
• Selling, general and administrative expenses were $51.5 million in the quarter, a decrease of 8% compared to $55.8 million in the first quarter of 2019.

“Our global employee base has rallied together to safely support our clients through these challenging times and I’d like to thank them all for their commitment to ensuring the health and safety of our team, our customers, and the communities in which we do business,” said Rich Stoddart, Chief Executive Officer. “Our first quarter was off to a strong start through mid-March and we achieved our highest quarterly gross margin since 2017 while continuing to lower our SG&A. While we experienced some revenue headwind late in the first quarter stemming from COVID-19, the improved quality of our revenue and the success of our initiatives to reduce costs and drive efficiencies position us to better navigate changing economic conditions going forward.”

Cash and Liquidity

Cash and cash equivalents totaled $30.8 million and debt, including short- and long-term, totaled $150.0 million at quarter end. At March 31st, the Company had $41.1 million in available borrowings on its ABL credit facility.

Outlook

As a result of the uncertainty around the duration of the COVID-19 pandemic and its impact on the business, the Company is withdrawing its 2020 guidance.

“Visibility in the current environment is low, but we are encouraged by the conversations we’re having with our clients, who represent many of the world’s largest and most well-known brands,” said Rich Stoddart, Chief Executive Officer. “The breadth of our work across verticals and geographies, the stability of our longstanding client relationships, and our multi-year transformation underway give us confidence in the strength of our business long-term.”