Top 40 distributor InnerWorkings (asi/168860) reported Monday that its second quarter revenue rose to $279.5 million, an increase of 4% over the same quarter the prior year. Through the first half of 2017, the Illinois-based company’s sales are up 1% to $546.9 million.

“Our second quarter results reflect strong execution of our strategy,” said Eric D. Belcher, CEO of InnerWorkings. “We continue to win more business with new and existing clients on the strength of our global capabilities and our technology. Our business is improving its mix of high value-add services, leading to stronger bottom-line performance.” 

Executives at InnerWorkings were especially excited about the company’s performance in the area of gross profit (net revenue). During the second quarter, which ended June 30, net revenue/gross profit tallied a record $70.2 million, or 25.1% of gross Q2 revenue. That represents a rise of 8% over the same period in 2016. Year-to-date, InnerWorkings has brought in a gross profit/net revenue of $134.5 million, or 24.6% of gross revenue, which is a 6% increase.

“We continue to see robust growth in net revenue, which we believe is the most important sales growth indicator for our business,” said Jeffrey P. Pritchett, Chief Financial Officer of InnerWorkings. 

According to InnerWorkings, non-GAAP diluted earnings per share rose to $0.12 in the second quarter – a step up from $0.11 in Q2 of last year. Meanwhile, non-GAAP adjusted EBITDA climbed 13% to $16.6 million. So far for 2017, EBITDA is up 9% to $28.9 million, InnerWorkings said.

InnerWorkings expects annual gross revenue 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. “The reduction in expected gross revenue is offset by higher expected profitability,” InnerWorkings said in a statement. Pritchett added: “Our net revenue and earnings outlook remain on track with additional profit improvement expected in the second half of the year.”

With estimated 2016 North American promotional product revenue of $147 million, InnerWorkings ranked 15^th on Counselor’s 2017 list of the largest distributors in the industry.