Professional Diversity Network Adds 1.5M Registered Users in Q2
Professional Diversity Network (NASDAQ: IPDN) announced its Q2 numbers on August 12, with revenue surging more than 900% year-over-year to $10.4 million. While much of this growth is attributable to the Company’s acquisitions of Noble Voice and NAPW (National Association of Professional Women) in late 2014, IPDN reported significant growth in registered users during the quarter, adding 1.5 million new users.
The Company also reported impressive gross margins of 84% while slashing operating expenses by nearly $1.5 million from the first quarter of the year, putting it well on pace to reach its previously stated goal of reaching more than $4 million in annual cost savings by the end of the third quarter.
Moving forward, IPDN is on solid financial footing to execute on its growth plans, with $6.4 million in cash and short-term investments reported as of June 30 and no long-term debt.
Commenting on the Company’s plans during its Q2 earnings call, CEO Jim Kirsch stated, “Our goal remains to build a profitable platform that can meet the large addressable market for providing economic opportunity to those we serve, including women, multicultural American’s, LGBT professionals, our nation’s heroes, our Veterans and their spouses.”
In July, Sergio Zlobin, VP of Technology at IPDN, stated, “For a technology company to achieve success it must grow its user base in an efficient and sustainable way. At IPDN our users are job seekers, and we have created a formula that allows us to add new users, at a declining marginal cost per user, while we are seeing similar growth in our employer partners. This means that we are growing supply (job seekers) while growing demand (employers), and matching the two in a manner we believe we can sustain and continue to grow.”
The combination of lower expenses, a rapidly expanding user base, and growing employer demand for its services bodes well for IPDN in the quarters ahead. With the stock trading at just over 1x trailing 12-month sales, investors have a great opportunity to see significant share price gains. Learn more about this exciting story by visiting: http://www.redchip.com/company/Technology/IPDN/179/Technology.
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Professional Diversity Network (IPDN) is a client of RedChip Companies, Inc. IPDN agreed to pay RedChip Companies, Inc. a monthly cash fee, 50,000 warrants priced at $3.50 and 50,000 warrants priced at $4.00 for three (3) months of investor awareness services.
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