Top 40 distributor InnerWorkings (asi/168860) reported Tuesday that its third quarter revenue rose to a record $288.4 million, an increase of 3% over the same quarter the prior year. Gross profit also reached a record $72.5 million, a 7% increase compared to the third quarter of 2016, while net income was $7.5 million, up from $4.3 million in Q3 of last year.

“We are continuing to improve our mix of high value-add services leading to stronger net revenue and profit performance,” said Jeffrey P. Pritchett, chief financial officer of InnerWorkings. “We expect 2017 to be another record year on both the top and bottom line.”

The company increased its year-to-date revenue by 2% to $835.3 million, while gross profit for the first three quarters was $207 million, an increase of 6% compared to the same time period in 2016. Diluted earnings per share for the year to date increased 34%, from 26 cents to 35 cents.

The company continues to sign new enterprise contracts, with a year-to-date collective total of over $100 million of annual gross revenue. InnerWorkings reported that the largest of the new contracts is a partnership with a Detroit-based financial services firm to manage the company's direct marketing and creative services execution. 

According to InnerWorkings, record non-GAAP diluted earnings per share rose to $0.15 in the third quarter – a step up from $0.11 in Q3 of last year. Meanwhile, non-GAAP adjusted EBITDA climbed 11% to $18.8 million. So far for 2017, EBITDA is up 10% to $47.7 million. 

“The investments we have made to build our global capabilities and technology platform are paying off in a meaningful way,” said Eric Belcher, CEO of InnerWorkings. “Our large backlog of new business awards and pipeline of pursuits position us well for 2018 and beyond.” 

InnerWorkings expects annual gross revenue for 2017 to fall in the range of $1.115 billion to $1.145 billion. Earlier this year, the company anticipated that 2017 revenue would be between $1.155 billion and $1.185 billion. With estimated 2016 North American promo product revenue of $147 million, InnerWorkings ranked 15^th on Counselor’s 2017 list of the largest distributors in the industry.