Professional Diversity Network, Inc. Announces Financial Results for the Quarter Ended March 31, 2025
CHICAGO, May 14, 2025 (GLOBE NEWSWIRE) -- Professional Diversity Network, Inc. (NASDAQ: IPDN), ("IPDN" or the "Company"), a global developer and operator of online and in-person networks that provides access to networking, training, educational and employment opportunities for diverse individuals, today announced its financial results for the quarter ended March 31, 2025.
"Despite ongoing market challenges, we have attracted increased investor interest, driven by enhanced operational efficiency and stronger cost control measures. Since December, our new investor, Aurous Vertex Limited, has committed approximately $1.8 million to the company," said Adam He, CEO of Professional Diversity Network, Inc. "At the same time, we are advancing the transformation of our platform's technological infrastructure through AI integration and strategic revenue diversification. To support this initiative, we invested $1.3 million in AI Geometric Ltd., securing a 13% equity stake to further strengthen our AI-driven recruitment ecosystem."
First Quarter Financial Highlights:
-- The consolidated net loss from continuing operations for the three months
ended March 31, 2025 decreased approximately $66,000 or 8.2%, as compared
to the same period in the prior year.
-- Net cash used in operating activities from continuing operations for the
three months ended March 31, 2025, was approximately $284,000, a
reduction of approximately $259,000 compared to the same period in the
prior year.
Financial Results for the Three Months Ended March 31, 2025
Revenues
Total revenues for the three months ended March 31, 2025 decreased approximately $222,000, or 12.9%, to approximately $1,505,000 from approximately $1,727,000 during the same period in the prior year. The decrease was predominantly attributable to an approximate $188,000 decrease in recruitment services due to the Executive Orders targeting diversity, equity, and inclusion programs in the public and private sectors and an approximate $31,000 decrease in membership and related services.
During the three months ended March 31, 2025, our TalentAlly network generated approximately $921,000 in comparable revenues compared to approximately $1,115,000 in revenues during the three months ended March 31, 2024, a decrease of approximately $194,000 or 17.4%.
During the three months ended March 31, 2025, NAPW network revenues were approximately $96,000, compared to revenues of approximately $127,000 during the same period in the prior year, a decrease of approximately $31,000 or 24.4%.
During the three months ended March 31, 2025, RemoteMore revenue was approximately $488,000, compared to revenues of approximately $485,000 during the same period in the prior year, an increase of approximately $3,000, or 0.6%.
Costs and Expenses
Cost of revenues during the three months ended March 31, 2025 was approximately $719,000, an increase of approximately $66,000, or 10.1%, from approximately $653,000 during the same period of the prior year.
Sales and marketing expense during the three months ended March 31, 2025 was approximately $571,000, a decrease of approximately $259,000, or 31.2%, from $830,000 during the same period in the prior year.
General and administrative expenses during the three months ended March 31, 2025 decreased by approximately $116,000, or 11.7%, to approximately $879,000, as compared to approximately $995,000 the same period in the prior year.
Net Loss from Continuing Operations, Net of Tax
As a result of the factors discussed above, during the three months ended March 31, 2025, we incurred a net loss from continuing operations of approximately $741,000, a decrease in the net loss of approximately $66,000, compared to a net loss of approximately $807,000 during the three months ended March 31, 2024.
Summary of the Quarter's Financial Information
Amounts in following tables are in thousands except for per share amounts and outstanding shares.
Summary of Financial Position
March 31, December 31,
2025 2024
--------------- --------------
(in thousands)
Current Assets:
Cash and cash equivalents $ 496 $ 1,731
Other current assets 1,291 1,496
-------------- ----------
Total current assets $ 1,787 $ 3,227
Long-term assets 5,952 4,755
-------------- ----------
Total Assets $ 7,739 $ 7,982
============== ==========
Total current liabilities $ 3,280 $ 2,956
Total long-term liabilities 160 185
-------------- ----------
Total liabilities $ 3,440 $ 3,141
Total stockholders' equity 4,915 5,322
Total stockholders' equity --
noncontrolling interests (616) (481)
-------------- ----------
Total liabilities and
stockholders' equity $ 7,739 $ 7,982
============== ==========
Summary of Financial Operations
Three Months Ended
March 31, Change Change
-----------------------
2025 2024 (Dollars) (Percent)
---------- ---------- ----------- ---------
(in thousands)
Revenues:
Membership
fees and
related
services $ 96 $ 127 $ (31) (24.4)%
Recruitment
services 916 1,104 (188) (17.0)%
Contracted
software
development 488 485 3 0.6%
Consumer
advertising
and
marketing
solutions 5 11 (6) (54.5)%
--------- --------- --- ------ ---------
Total revenues $ 1,505 $ 1,727 $ (222) (12.9)%
Cost and
expenses:
Cost of revenues $ 719 $ 653 $ 66 10.1%
Sales and
marketing 571 830 (259) (31.2)%
General and
administrative 879 995 (116) (11.7)%
Depreciation and
amortization 41 52 (11) (21.2)%
--------- --------- --- ------ ---------
Total pre-tax
cost and
expenses: $ 2,210 $ 2,530 $ (320) (12.6)%
--------- --------- --- ------ ---------
Consolidated net
loss from
continuing
operations, net
of tax $ (741) $ (807) $ 66 8.2%
========= ========= === ====== =========
Basic and
diluted loss
per share:
Net loss per
share $ (0.39) $ (0.70)
Weighted
average
outstanding
shares used in
computing net
loss per common
share:
Basic and
diluted 1,893,493 1,148,118
Summary of Cash Flows from Continuing Operations
Three Months Ended March 31,
------------------------------------
Cash (used in) provided by
continuing operations 2025 2024
-------------------------------- ------------------ ------------
(in thousands)
Operating activities $ (284) $ $(543.SI)$
Investing activities (1,300) (83)
Financing activities 349 95
Net increase in cash and cash
equivalents from continuing
operations $ (1,235) $ (531)
=== ============= ========
Professional Diversity Network, Inc. and Subsidiaries
Non-GAAP (Adjusted) Financial Measures
We believe Adjusted EBITDA provides a meaningful representation of our operating performance that provides useful information to investors regarding our financial condition and results of operations. Adjusted EBITDA is commonly used by financial analysts and others to measure operating performance. Furthermore, management believes that this non-GAAP financial measure may provide investors with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. However, while we consider Adjusted EBITDA to be an important measure of operating performance, Adjusted EBITDA and other non-GAAP financial measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Further, Adjusted EBITDA, as we define it, may not be comparable to EBITDA, or similarly titled measures, as defined by other companies.
The following non-GAAP financial information in the tables that follow are reconciled to comparable information presented using GAAP, derived by adjusting amounts determined in accordance with GAAP for certain items presented in the accompanying selected operating statement data.
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