Investors Earnings Recap : Professional Diversity Network (NASDAQ:IPDN)

Shares of Professional Diversity Network (NASDAQ:IPDN) were transacted with a volume of 5034 shares in last trading period as compared to its average volume of 14.35K shares over last three months period. The stock price scored -0.65% and valued at $3.02. Its 52 week price range is $ 0.73 – 4.46.

Professional Diversity Network (NASDAQ:IPDN) declared its financial results for the quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights:

Net loss from continuing operations was $1.1 million for the quarter ended March 31, 2019, a decrease of 37.3% from $1.8 million for the quarter ended March 31, 2018.

Total costs and expenses were $2.6 million for the quarter ended March 31, 2019, a 42.2% decrease compared to $4.4 million for the quarter ended March 31, 2018.

From April 1, 2019 to April 2, 2019, the Company sold an aggregate of 28,552 shares of its common stock at a purchase price ranging from $3.70 to $3.85 per share, representing 120% of the closing price the trading day immediately prior to the date of subscription. As of the date of this quarterly report, the Company has received an aggregate gross proceeds of $107,036 under this private placement.

Michael Wang, Chairman and CEO of Professional Diversity Network, said, “While the Company continued to sustain losses, we see positive momentum on our efforts in reducing costs and overheads. The beginning of 2019 marks the fifth consecutive quarter that we successfully reduce losses.

Mr. Wang continued, “This year we will continue enhancing our diversity recruitment and women’s networking segments and expanding our China business to increase shareholder value and move toward sustainable profitability.”

First Quarter 2019 Financial Results

Revenue

For the quarter ended March 31, 2019, IPDN reported total revenue of $1.3 million, a 41.8% decrease from $2.3 million for the quarter ended March 31, 2018. The decrease is mainly the result of management’s focus on reduction in sales and operations workforce as a means to improved efficiencies and operational effectiveness while rebranding the business.

Costs and Expenses

Total costs and expenses were $2.6 million for the quarter ended March 31, 2019, a 42.2% decrease compared to $4.4 million for the quarter ended March 31, 2018. The decrease is primarily the result of $992,000 or 42.2% decrease in general and administrative expenses, a $459,000 or 67.5% decrease in depreciation and amortization expenses, and a $312,000, or 28.5% decrease in sales and marketing expenses.

Net Loss

Net loss for the quarter ended March 31, 2019 was $1.2 million or $0.23 per share – compared to a net loss of $2.0 million, or $0.48 per share, for the quarter ended March 31, 2018.

Net Loss from Continuing Operations

Net loss from continuing operations was $1.1 million for the quarter ended March 31, 2019, a decrease of 37.3% from $1.8 million for the quarter ended March 31, 2018. The $680,000 decrease in net loss was primarily driven by $992,000 decrease in general and administrative expenses, a $459,000 decrease in depreciation and amortization expenses, and a $312,000 decrease in sales and marketing expenses, partially offset by a $756,000 decrease in revenues from membership fees, related services at the NAPW segment.

Cash and Financial Position

As of March 31, 2019, the Company had cash and cash equivalents of $0.8 million, compared to $1.4 million as of December 31, 2018. The Company had a working capital deficiency of $4.3 million as of March 31, 2019, compared to a working capital deficiency of $3.4 million as of December 31, 2018.

Net cash used in operating activities in continuing operations was $1.0 million for the quarter ended March 31, 2019, and net cash used in operating activities in continuing operations was 1.6 million for the quarter ended March 31, 2018.

The price moved ahead -7.39% from the mean of 20 days, -5.63% from 50 and separated 23.82% from 200 days average price. Its price volatility for a month and for a week remained 7.40% 4.74% respectively. It noted beta of 3.01. Company’s price to sales ratio for last 12 months was 1.76 while its price to book ratio for the most recent quarter was – and its Market Cap valued at $14.96M.

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