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Professional Diversity Network, Inc. Announces First Quarter 2014 Financial Results

CHICAGO, May 14, 2014 (GLOBE NEWSWIRE) -- Professional Diversity Network, Inc. (Nasdaq:IPDN), 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 March 31, 2014.

Highlights include:

  • Total revenue recognized for fiscal first quarter of 2014 grew 35% as compared to the first quarter of 2013, from $919,803 to $1,237,653 respectively
  • Direct sales bookings increased for the third consecutive quarter to $764,000, representing a 526% increase over the first quarter of 2013. First quarter 2014 direct sales bookings include $275,000 from our events division, which was purchased at the end of the third quarter of 2013.
  • Registered users grew by 9.9% in the first quarter of 2014 compared to a 3.4% growth in the first quarter of 2013.

First Quarter 2014 Financial Results

For the quarter ended March 31, 2014, the Company reported total revenues of $1,237,653, a 35% increase from $919,803 in the same period one-year prior, attributable primarily to an increase in revenue from direct sales.

The Company narrowed its comprehensive net loss by 45% in the fiscal first quarter of 2014 to ($262,543). This is compared to a comprehensive net loss of ($478,378) in the same period one-year prior, attributable primarily to interest earned on investments, an increase in revenue from direct sales and recognition of a tax benefit.

Total operating expenditures during the first quarter of 2014 increased by 53% compared to the same period one year prior, from $1,166,778 to $1,789,518 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.

Comprehensive net loss per share for the quarter ended March 31, 2014 was $0.04/share, compared to a comprehensive net loss in the first quarter one-year prior of $0.11/share.

Loss from operations during the fiscal first quarter of 2014 was ($551,865) compared to an operating loss of ($246,975) in the first quarter one year prior, representing a 123% loss increase, attributable to our investment in our Sales and Marketing team and costs of being a public company.

As of March 31, 2014 total assets for the period were $21,755,815, a decrease from $22,020,197 that the Company reported during for the quarter ended December 31, 2013, attributable to operating losses incurred by the company.

"We are pleased with the growth and diversification of our revenues, gains in registered users and reception of our products and services by employers seeking to recruit diverse talent. 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:
First Quarter 2014 Financial Results Conference Call Details:
Date: Wednesday, May 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 March 31, 2014 and 2013
Three Months Ended March 31,
2014 2013
Revenues
Recruitment services $816,343 $535,680
Consumer advertising and consumer marketing solutions revenue 421,310 384,123
Total revenues 1,237,653 919,803
Costs and expenses:
Cost of services 366,471 239,213
Sales and marketing 796,444 455,809
General and administrative 535,696 421,066
Depreciation and amortization 90,907 55,424
Gain on sale of property and equipment -- (4,734)
Total costs and expenses 1,789,518 1,166,778
Loss from operations (551,865) (246,975)
Other income (expense)
Interest expense -- (155,137)
Interest and other income 66,246 5,225
Other income (expense), net 66,246 (149,912)
Change in fair value of warrant liability 43,809 110,808
Loss before income taxes (441,810) (286,079)
Income tax (benefit) expense (179,267) 195,737
Net loss $(262,543) $(481,816)
Other comprehensive (loss) income:
Net loss $(262,543) $(481,816)
Unrealized gains on marketable securities -- 3,438
Comprehensive loss $(262,543) $(478,378)
Net loss per common share, basic and diluted $(0.04) $(0.11)
Shares used in computing pro forma net loss per common share:
Basic and diluted 6,316,207 4,307,794
Pro-forma computation related to conversion to a C corporation upon completion of initial public offering:
Historical pre-tax net loss before taxes $(441,810) $(286,079)
Pro-forma tax (benefit) provision (179,267) (164,370)
Pro-forma net loss $(262,543) $(121,709)
Pro-forma loss per share - basic and diluted
Unaudited pro-forma loss per share $(0.04) $(0.03)
Weighted average number of shares outstanding 6,316,207 4,307,794
Professional Diversity Network, Inc.
Condensed Balance Sheets (Unaudited)
March 31, 2014 and December 31, 2013
March 31, December 31,
2014 2013
Current Assets:
Cash and cash equivalents 10,829,109 18,736,495
Accounts receivable 959,957 1,218,112
Short-term investments 7,500,341 --
Prepaid expenses and other current assets 351,641 99,094
Total current assets $19,641,048 $20,053,701
Property and equipment, net 60,498 54,781
Security deposits 12,644 12,644
Capitalized technology, net 655,798 692,511
Goodwill 735,328 735,328
Trade name 90,400 90,400
Deferred tax asset 560,099 380,832
Total assets $21,755,815 $22,020,197
Current Liabilities:
Accounts payable 399,554 222,961
Accrued expenses 263,538 188,462
Deferred revenue 814,721 1,024,420
Warrant liability 41,412 85,221
Total current liabilities $1,519,225 $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 21,883,593 21,883,593
Accumulated deficit (1,698,930) (1,436,387)
Treasury stock, at cost; 2,200 shares at March 31, 2014 and December 31, 2013 (11,255) (11,255)
Total stockholders' equity 20,236,590 20,499,133
Total liabilities and stockholders' equity $21,755,815 $22,020,197

About Professional Diversity Network, Inc.

The Professional Diversity Network platform provides employers that value diversity with access to diverse talent to meet their hiring needs. Professional Diversity Network owns and operates professional networking communities including: iHispano.com for Hispanic professionals, BlackCareerNetwork.com for African-American professionals, WomensCareerChannel.com for professional women, Military2Career.com for Veterans, ProAble.net for professionals with disabilities, OutProNet.com for professionals in the LGBT community, and AsianCareerNetwork.com for Asian-American professionals. For more information, visit www.prodivnet.com.

CONTACT: Professional Diversity Network, Inc. David Mecklenburger, CFO 312-614-0944 dmecklenburger@prodivnet.com Capital Markets Advisor Merriman Capital, Inc. Douglas Rogers, Managing Director Head of Capital Markets Advisory Group 415-248-5612 drogers@merrimanco.comSource:Professional Diversity Network, Inc.