Professional Diversity Network, Inc. Announces Second Quarter 2014 Financial Results
CHICAGO, Aug. 14, 2014 (GLOBE NEWSWIRE) -- Professional Diversity Network, Inc. (Nasdaq:IPDN), ("PDN" or the "Company"), an Internet software and services company specializing in diversity recruitment resources for corporations, government agencies and job seekers, announced today its quarterly financial results for the quarter ended June 30, 2014.
Highlights include:
- Total revenue recognized for fiscal second quarter of 2014 grew 5.7% as compared to the second quarter of 2013, from $977,000 to $1,032,000 respectively;
- Direct sales bookings increased for the fourth consecutive quarter to $802,000 representing a 663% increase over the second quarter of 2013. Second quarter 2014 direct sales bookings include $225,000 from our events division;
- Launch of new AudioEye, Inc. cloud-based solution to provide internet application accessibility to persons with disabilities.
Second Quarter 2014 Financial Results
For the quarter ended June 30, 2014, the Company reported total revenues of $1,032,000, a 5.7% increase from $977,000 in the same period one-year prior, attributable primarily to an increase in revenue from direct sales, offset by a decrease in our LinkedIn revenue.
The Company reported a comprehensive net loss in the fiscal second quarter of 2014 of ($488,000). This is compared to a comprehensive net loss of ($142,000) in the same period one-year prior, attributable primarily to increases in the costs of building a direct salesforce and costs directly related to the Career Events division. In addition, the Company recognized a benefit of over $200,000 in the second quarter of 2013 due to the decrease in fair value of its outstanding warrant liabilities.
Total operating expenditures during the second quarter of 2014 increased by 29% compared to the same period one year prior, from $1,411,000 to $1,825,000 attributable primarily to the investment we made in our direct salesforce, the costs of being a public company and costs of operating our career events division acquired in the third quarter of 2013.
Comprehensive net loss per share for the quarter ended June 30, 2014 was $0.08/share, compared to a comprehensive net loss in the first quarter one-year prior of $0.02/share.
Loss from operations during the fiscal second quarter of 2014 was ($792,000) compared to ($434,000) in the second quarter one year prior, attributable to our investment in our Sales and Marketing team and costs of being a public company.
As of June 30, 2014 total assets were $22,214,000, an increase from $22,020,000 that the Company reported at December 31, 2013, attributable to a combination of operating losses incurred by the Company and the capitalization of certain software license agreements that the company entered into as of June 30, 2014.
"We are excited about the continued growth of our direct sales, additional gains in registered users and the new products we are unveiling to our customers and potential customers. We will be discussing the details of our quarter on the forthcoming conference call this afternoon," said Professional Diversity Network's CEO James Kirsch.
The Company will be hosting a conference call to discuss its full financial results as follows:
| Second Quarter 2014 Financial Results Conference Call Details: | |
| Date: | Thursday, August 14, 2014 |
| Time: | 4:30PM Eastern / 1:30PM Pacific |
| Participant Dial-In: | 877-407-9205 (Toll Free), 201-689-8054 (International) |
It is recommended that participants dial in approximately 10 minutes prior to the start of the 4:30PM Eastern call. There will also be an archived recording of the conference call available under the Investor Relations section of the Company website at http://investor.prodivnet.com.
| Professional Diversity Network, Inc. | ||
| Condensed Statements of Comprehensive Loss (Unaudited) | ||
| For the Three Months Ended June 30, 2014 and 2013 | ||
|
Three Months Ended June 30, |
||
| 2014 | 2013 | |
| Revenues | ||
| Recruitment services | $ 585,106 | $ 556,111 |
| Consumer advertising and consumer marketing solutions revenue | 447,181 | 420,809 |
| Total revenues | 1,032,287 | 976,920 |
| Costs and expenses: | ||
| Cost of services | 395,754 | 247,005 |
| Sales and marketing | 763,083 | 576,018 |
| General and administrative | 572,018 | 527,048 |
| Depreciation and amortization | 93,648 | 60,563 |
| Total costs and expenses | 1,824,503 | 1,410,634 |
| Loss from operations | (792,216) | (433,714) |
| Other income (expense) | ||
| Interest and other income | 1,010 | 9,132 |
| Other income (expense), net | 1,010 | 9,132 |
| Change in fair value of warrant liability | (30,277) | 200,495 |
| Loss before income taxes | (821,483) | (224,087) |
| Income tax (benefit) expense | (333,322) | (90,925) |
| Net loss | $ (488,161) | $ (133,162) |
| Other comprehensive (loss) income: | ||
| Net loss | (488,161) | (133,162) |
| Unrealized gains on marketable securities | -- | (8,799) |
| Comprehensive loss | $ (488,161) | $ (141,961) |
| Net loss per common share, basic and diluted | $ (0.08) | $ (0.02) |
| Shares used in computing pro forma net loss per common share: | ||
| Basic and diluted | 6,313,717 | 6,318,227 |
| Pro-forma computation related to conversion to a C corporation upon completion of initial public offering: | ||
| Historical pre-tax net loss before taxes | $ (821,483) | $ (224,087) |
| Pro-forma tax (benefit) provision | (333,322) | (90,925) |
| Pro-forma net loss | $ (488,161) | $ (133,162) |
| Pro-forma loss per share - basic and diluted | ||
| Unaudited pro-forma loss per share | $ (0.08) | $ (0.02) |
| Weighted average number of shares outstanding | 6,313,717 | 6,318,227 |
| Professional Diversity Network, Inc. | ||
| Condensed Balance Sheets (Unaudited) | ||
| June 30, 2014 and December 31, 2013 | ||
|
June 30, 2014 |
December 31, 2013 |
|
| Current Assets: | ||
| Cash and cash equivalents | $5,609,138 | 18,736,495 |
| Accounts receivable | 1,542,643 | 1,218,112 |
| Short-term investments | 11,876,078 | -- |
| Prepaid expenses and other current assets | 331,882 | 99,094 |
| Total current assets | 19,359,741 | $ 20,053,701 |
| Property and equipment, net | 55,957 | 54,781 |
| Security deposits | 12,644 | 12,644 |
| Prepaid license fee | 450,000 | -- |
| Capitalized technology, net | 616,296 | 692,511 |
| Goodwill | 735,328 | 735,328 |
| Trade name | 90,400 | 90,400 |
| Deferred tax asset | 893,421 | 380,832 |
| Total assets | $22,213,787 | $ 22,020,197 |
| Current Liabilities: | ||
| Accounts payable | 306,581 | 222,961 |
| Accrued expenses | 710,239 | 188,462 |
| Deferred revenue | 1,377,015 | 1,024,420 |
| Warrant liability | 71,689 | 85,221 |
| Total current liabilities | $ 2,465,524 | $ 1,521,064 |
| Commitments and contingencies | ||
| Stockholders' Equity | ||
| Common stock, $0.01 par value, 25,000,000 shares authorized, 6,318,227 shares issued and 6,316,027 shares outstanding as of March 31, 2014 and December 31, 2013 | 63,182 | 63,182 |
| Additional paid in capital | 21,909,289 | 21,883,593 |
| Accumulated deficit | (2,187,091) | (1,436,387) |
| Treasury stock, at cost; 2,200 shares at March 31, 2014 and December 31, 2013 | (37,117) | (11,255) |
| Total stockholders' equity | 19,748,263 | 20,499,133 |
| Total liabilities and stockholders' equity | $ 22,213,787 | $ 22,020,197 |
About Professional Diversity Network
Professional Diversity Network (PDN) develops and operates online professional networking communities dedicated to serving diverse professionals in the United States and employers seeking to hire diverse talent. PDN's networking communities harness its relationship recruitment methodology to facilitate and empower professional networking within common affinities. PDN believes that those within a common affinity often are more aggressive in helping others within their respective group progress professionally. PDN operates these relationship recruitment affinity groups within the following sectors: Women, Hispanic Americans, African Americans, Asian Americans, Disabled, Military Professionals, Lesbians, Gay, Bisexual and Transgender (LGBT) and Student and Graduates seeking to transition from education to career. The online platform of PDN provides employers a means to identify and acquire diverse talent and assist them with their efforts to comply with the Equal Employment Opportunity Office of Federal Contract Compliance Program.
CONTACT: Professional Diversity Network, Inc.
David Mecklenburger, CFO
312-614-0944
dmecklenburger@prodivnet.com
Capital Markets Advisor
Merriman Capital, Inc.
Alexandra Petek
Director of Client Services
415-248-5681
apetek@merrimanco.com
Source: Professional Diversity Network, Inc.
Released August 14, 2014