Exhibit 99.1
PROFESSIONAL DIVERSITY NETWORKA Dynamic Operator Of Professional Networks Focused On Diversity www.prodivnet.com NASDAQ:IPDN Shares O/S 14.6MM Mgmt. Ownership 17.9%
SAFE HARBOR Notice Regarding Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding Professional Diversity Network’s (“PDN” or the “Company”) expected future financial position, results of operations, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include the words such as “expects,” “reaffirms,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “optimistic,” or variations of such words and similar expressions, are forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the heading “Risk Factors” in the Company’s Annual Report on Form 10K and filings with the Securities and Exchange Commission (the “SEC”). Moreover, the Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Company management to predict all risks, nor can the Company assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements the Company may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. These risk factors are listed from time to time in PDN’s SEC filings, including but not limited to its Annual Report on Form 10-K filed on March 31, 2015. Forward looking statements speak only as of the date they were made, and PDN does not assume any obligation to publicly update or revise any forward-looking statements for any reason. 2
WHO WE ARE Financial Data As of September 30, 2015 3 A Career Consultation And Lead Generation Service A Dynamic Operator Of Professional Networks Focused On Diversity Online Professional Networking Communities With Career Resources Tailored To The Needs Of Various Diverse Cultural Groups With 6.8MM Registered Users A Professional Women’s Networking Organization With Over 850,00 Members
MULTICULTURAL AMERICA Source: Bureau of Labor Statistics’ “The Employment Situation—June 2012” U.S. Census Data Estimates That By 205083% Of The Growth In The Working Age Population Will Be Comprised Of New Immigrants And Their Children. Continuing Population Shift Is Changing The Professional Workforce 4 2012 2050
PROFESSIONAL DIVERSITY NETWORK 5 * Source: Catalyst.org ONLINE DIVERSITY RECRUITMENTJob PostingsOnline Recruitment AdvertisingDiversity Recruitment Compliance ServicesCareer Fairs The PDN Network Consists Of Several Online Professional Networking Communities Dedicated To Serving Diverse Professionals AndEmployers Seeking To Hire Diverse Talent. PDN’s Primary Functionality Includes Contact Management, Networking Tools And A Recruiting Platform HIRE ADVANTEDGECost Per Qualified ApplicantAdditional Output of Career ConsultationMore Efficient Than Job Postings PDN Provides A Platform That Benefits All Aspects Of Its Market’s Ecosystem Including Users, Recruiters And AdvertisersServing Employers Who Are Subject To EEOC, Affirmative Action And OFCCP Regulations Mandating A Diverse WorkforceUsers Have The Ability To Manage And Build Their Professional Network As Well As Access A Large Job Listing DatabaseRecruiters Use PDN’s Platform To Post Job Listings As Well As Identify Potential CandidatesAdvertisers Can Target A Specific Audience / Demographic
Mobile And Tablet FriendlyOne Site For Every Screen Provides A Consistent ExperienceGeographically And Occupationally TargetedCulturally Relevant Recruitment For Active And Passive CandidatesPromotion Of Corporate Culture Of Diversity And InclusionConnect And Network With Recruiters And Diverse TalentSemantic Searching (Employer Or Seeker)Advanced Analytics To Match Diverse Talent To Career OpportunitiesIncorporation Of Location, Current Trends, Word Variations And Other Natural Language Elements PROFESSIONAL DIVERSITY NETWORK AFFINITIES African American Professionals 6
OUR DIVERSITY RECRUITING ECOSYSTEM 7 Nationwide Networking Conferences, Events & Career Fairs Compliance Suite Targeted Email Campaigns Employer Dashboard Patented Smart Online Resume Builder Recruitment Media Campaigns Social Media Platforms Talent Communities Sourcing + Text Message Jobs + Applies
HIREADVANTEDGE A Predictable Subscription Based Recurring Revenue Driven Model 8 In 000s
PROFESSIONAL DIVERSITY NETWORK 9 * Source: Catalyst.org Key MetricsEight Affinity Networking Communities6.8MM Users7 Million TCPA Opt-in Job SeekersHighest Number Of Page Views, Unique Monthly Visitors And Number Of Registered Users Compared To Other Minority Professional Networking Sites Access To 28 Million Minority Professionals Via Its Ad Network Web Properties As Well As Content Shared On Its Partners' Sites 3x The Reach Of The Next Largest Multicultural NetworkIn The U.S., PDN Has Penetrated 77% Of Hispanics And 54% Of African-Americans Online
1. Year ending December 31st of each year2. 2015 data as of September 303. Does not include NAPW membership4. Partner membership included beginning 2013 10 PDN Registered User Growth1.1MM New Registered Users Q3 2015 In 000s
Proven Results “The McGraw-Hill companies have worked with iHispano since 2005 to increase their diversity talent pipeline of candidates, and Professional Diversity Network is our go-to solution to build a diverse work environment.”Peter CastilloSenior Director, Talent Acquisition Inclusion & Diversity at The McGraw-Hill Companies“Diversity is a core value of The McGraw-Hill Companies, and our commitment to a diverse work environment spans generations. Today, our reputation for integrity, quality and innovation depends on our ability to transform the diverse experiences, perspectives and ideas of our employees into outstanding information services and analysis that meet the financial, education and business needs of our customers worldwide.I believe that we are at our best when the men and women of The McGraw-Hill Companies work and thrive in a dynamic environment where inclusion is encouraged, differences are respected, and diversity is of paramount importance.“Harold McGraw IIIChairman, President and CEO 11
NOBLE VOICE Financial Data As of September 30, 2015 12 A Career Consultation And Lead Generation Service The Noble Voice Call Centers Qualify Callers For Real-time Job Placement. Conducts Over 25,000 Career Consultations Per Week. Monetizes These Consultations By Using Proprietary Technology To Drive Inexpensive Online Traffic To Our Offline Call Centers And Generating Value-added LeadsLeads Are Sold To Strategic Partners Who Provide Continuing Education And Career Services. Noble Voice Maintains A Sophisticated CRM And Marketing Controls, And Is Able To Efficiently Manage The Number Of Consultations To Match Demand.
13 Founded in 2007 To Provide ExclusiveNetworking Opportunities To Professional Women. Through Building Connections And Expanding Their Network, Women Can Advance Their Careers And Be Empowered To Achieve. Today NAPW Has More Than 850,000 Members, Over 200 Local Chapters Across The Country, AndOur Virtual “eChapter” With Over 13,000 Members “My answer is simple. We need a place where we can nurture relationships in a way that feels comfortable, a venue where we make the rules, and a private space that empowers us.”Why Women Need Women-Only Networks FORBESWOMEN
14 WOMEN’S MEDIAN EARNINGS80% OF MEN’S 78MMWOMEN INLABOR FORCEBY 2018 80%WHITE COLLARIN 2013 8.6MMWOMEN-OWNEDBUSINESSES NAPW Online Networking Site Connecting Emerging Business Owners and New Customers Women Are Projected To Make Up 51% Of The Increase In The Workforce Through 2018 And Make The Purchasing Decisions For Themselves And Their Families Source: Catalyst.org NATIONAL ASSOCIATION OF PROFESSIONAL WOMENMARKET OPPORTUNITY
DEMOGRAPHICS NATIONAL ASSOCIATION OF PROFESSIONAL WOMEN 45% ARE MANAGERS/ EXECUTIVES 75% ARE HOMEOWNERS NAPW Is The Largest, Most Recognized Networking Organization For Professional Women In The Country 15
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STAR JONESPresident A Well-Respected, Sought-after Commentator And Women’s And Diversity Advocate, Star Is A Highly Accomplished Attorney, Former NYC Prosecutor, Entrepreneur, Businesswoman, Philanthropist, Best-selling Author And PDN/NAPW President. Star’s Guest Commentator Appearances Provide National Exposure, Promotion, Credibility And Thought Leadership For PDN/NAPW In Major Broadcast Markets And Online -- Raising Awareness Of PDN Products And Services, And Creating New Demand From Potential Clients. As The National Volunteer For The American Heart Association, Star Positively Impacts The Lives Of All Women By Empowering Them To Take Action, Stand Stronger And Join The Fight Against Heart Disease. PDN and NAPW “STAR” POWERSTAR JONES, PRESIDENT 17
FINANCIAL HIGHLIGHTS Through September 30, 2015$30MM In Revenue YTD Q315, Up from $3.8MM in Comparable Prior Year Period Driven Primarily By Acquisitions$8.7MM in Unaudited Booked Revenues In The 3rd Quarter Of 2015, Up From $1.2 Million In The Comparable Prior Year PeriodGross Profit Margin Of 84% YTD Q315Liquidity Position Provides Resources To Support Long-Term Growth StrategySuccessfully Completed Two Acquisitions In 2013 – Adding Technology Strength, Product Offering Breadth, Depth And Growth Of Brand AwarenessAcquired NAPW In Q314 And The Assets Of Noble Voice In Q414 18
STATEMENT OF OPERATIONS 19
Reconciliation of Net Loss to Adjusted EBITDA 20 The Table Above Presents Adjusted EBITDA (A Non-GAAP Financial Metric) And Provides A Reconciliation Of Adjusted EBITDA To The Directly Comparable GAAP Measure Reported In The Company’s Consolidated Financial Statements
BALANCE SHEET 21 Other current assets include Incremental direct costs, prepaid license fee, and other prepaid expenses.Other assets include goodwill and intangible assets net of accumulated amortization, merchant reserve, security deposits and other misc. assets.Source: PDN
REVENUE TRENDS BY SOURCE 22 New MembershipsTrends Impacted By Reduced Lead Spend, Size of Membership Coordinator Team.Steps Being Taken to Optimize Lead Spend and Membership Coordinator Performance To Improve Variable Contribution Opportunities to Expand Efforts Through Member to Member Initiatives, Networking Event Membership Drives, ‘Work From Home’ Model In Other States, Segmentation Initiatives, Potential For eCommerce Offering RenewalsStrong Recurring Revenue StreamOpportunities to Improve Renewal Rate Through Enhanced Member Engagement Initiatives, Gamification, Expanded On Boarding Efforts, Revised Product Offerings Based on Recent Market Study, Networking Event Cadence and Location, Branding and Marketing Efforts Additional Product SalesTrends Impacted By New Membership Trends and CRM Implementation ChallengesOpportunities to Drive Additional Revenue Through Customization of CRM, Expansion of Sales Team, New Product/Partnership Offerings
GROWTH STRATEGY Expand Subscription Based ServiceExpansion of licenses deployedGrow services within existing licensesIncrease recruiter license awareness with national Cable TV commercial Launch in April 23 Grow revenues through market share gainsAccelerate new Job Seeker ConsultationsAdd new Career Counselors by 50% in 2016Leverage scale to increase profitability Grow Membership Base in Key DMAsExpansion of Sales Team Nationally (WAH), M2M Initiatives, University MarketDrive RetentionMember Engagement Initiatives (Gamification), Optimize Product Offerings Based on Mkt Research, Targeted Networking Events, PartnershipsBig DataEnhance Membership Database to Optimize Marketing Spend and Engage Corporate Sponsors
WHY INVEST IN PDN Attractive Industry Demographic TrendsRegulatory Environment Favorable To Promoting Diversity In The Workplace Acceptance And Growth Of Online Recruitment And Advertisement Customized Technology Platform That Harnesses The Power Of Web SocializationBusiness Model With Efficient Member Acquisition And Recurring Cash FlowStrong Strategic Alliances And Relationships With Professional OrganizationsLarge, Growing And Diverse National Membership Base With Further Monetization OpportunitiesHigh Gross Margins (84%) Provides Ability To Generate Significant Cash Flow Once Scale Achieved 24 * Source: Catalyst.org
Professional Diversity Network has over 50 Diversity Organizations, Not-for-Profits and Media Partners STRATEGIC PARTNERSHIPS ACCESSIBLE.ORG 25
BOARD OF DIRECTORS 26
BOARD OF DIRECTORS 27 Donna BrazileManaging Director Of Brazile & Associates LLC Donna Brazile Is A Veteran Democratic Political Strategist. She Is The Founder And Managing Director Of Brazile & Associates LLC, A General Consulting, Grassroots Advocacy, And Training Firm Based In Washington, DC. Ms. Brazile Also Is An Adjunct Professor At Georgetown University, A Syndicated Columnist For Universal Uclick, Ms. Magazine, And O, The Oprah Magazine, A Television Political Commentator On ABC And CNN, And The Vice Chair Of Voter Registration And Participation At The Democratic National Committee. Previously She Served As Interim National Chair Of The Democratic National Committee And Former Chair Of The Dnc’s Voting Rights Institute. In 2000, She Was The First African-american To Manage A Presidential Campaign While Working For Vice President Al Gore. Randi ZuckerbergCEO Of Zuckerberg MediaRandi Zuckerberg Is The Founder And CEO Of Zuckerberg Media, A Digital And Traditional Media Company, And Editor-in-chief Of Dot Complicated, An Online Community Helping Us Navigate And “Untangle” Our Wired, Wonderful Lives. Randi Recently Released Her First Books With Harpercollins, An Adult Non-fiction Book Also Titled Dot Complicated, Which Addresses The Multifaceted Complications Of Our Socially Transparent World, And A Children’s Picture Book, Titled Dot. She Also Recently Appeared On Broadway In Rock Of Ages As Regina. As An Early Marketing Executive At Facebook, Randi Created And Ran The Social Media Pioneer’s Marketing Programs. She Led The Company’s U.S. Election And International Politics Strategy And Created Facebook’s Live Streaming Initiatives During The 2008 Presidential Inauguration. Randi Was Nominated For An Emmy Award In 2011 For Her Innovative Coverage Of The 2010 Mid-term Elections That Integrated Online And TV Coverage In Unique Formats.
BOARD OF DIRECTORS 28 Daniel MarovitzPresident Of Europe, Earthport PLCHe Is The President Of Earthport, Europe And A Member Of The Executive Team Of Earthport Plc, The Largest Open Network For Cross Border Payments. He Is A Respected Web Entrepreneur And Banker. He Founded Buzzumi, A Software Platform That Helps Consulting And Advice-based Businesses Operate Online. From 2007 To 2011, He Served As Head Of Product Management And Member Of The Board Of Deutsche Bank’s Global Transaction Bank. Previously, Daniel Served As Chief Information Officer For Investment Banking Of Deutsche Bank And Chief Operating Officer Of Technology From 2002 To 2007. Mr. Marovitz Joined Deutsche Bank In 2000 As Managing Director And Chief Operating Officer Of The EGCI Group At Deutsche Bank. Previously, He Was Vice President Of Commerce At iVillage, An Online Women’s Network From 1998 To 2000. Mr. Marovitz Also Worked For Gateway 2000 Where He Served As The Head Of Gateway.com From 1996 To 1998 And Was The Co-founder Of Gateway’s Japanese Subsidiary In Tokyo From 1994 To 1996. Star JonesPresident And National Spokesperson – Professional Diversity NetworkA Former Senior Assistant District Attorney For The City Of New York, Star Jones Previously Served As A Legal Correspondent, Analyst And Highly Sought After Television Personality Over The Last Two Decades. From 1997-2006, She Was Co-host Of ABC’s Hit Daytime Show The View. For Her Work In Television, Ms. Jones Has Received Nine Emmy Nominations. Also An Accomplished Author, Ms. Jones Has Written Three Best-selling Books And Launched And Supported Numerous Successful Businesses. A Prolific Fundraiser For Philanthropic Causes, Since 2011, Ms. Jones Has Been The Face Of The American Heart Association's (AHA) National Go Red Efforts As A National Volunteer. Ms. Jones Frequently Lectures On A Variety Of Topics, Including Law, Politics, Race, Gender Equality, Networking, Women’s Empowerment, Pop Culture, Fitness And Heart Health.
BOARD OF DIRECTORS 29 Stephen PembertonVP & Chief Diversity Officer Of WalgreensStephen Pemberton Is A Director. In 2011, He Joined Walgreen Co., A Retail Pharmacy Company, As Divisional Vice President And Chief Diversity Officer. From 2005 To 2010, Mr. Pemberton Was Chief Diversity Officer And Vice President Of Diversity And Inclusion At Monster Worldwide.com. Mr. Pemberton Is The Author Of The Best-Selling Book, “A Chance In The World” And Lectures Across The Nation On Diversity And Inclusion In The Workplace. Andrea SáenzFirst Deputy Commissioner At Chicago Public LibraryAndrea Sáenz Is A Director. Since May 2011, She Has Served As Chief Of Staff For The Chicago Public Schools. From August 2010 To May 2011, Ms. Sáenz Was Board Resident At The U.S. Department Of Education. From July 2006 To August 2010, Ms. Sáenz Was Executive Director For The Hispanic Alliance For Career Enhancement, A Nonprofit Organization Dedicated To The Advancement Of Latino Professionals. Prior To Holding That Position, She Was A Fellow At The University Of Pennsylvania Fels Institute Of Government. Ms. Sáenz Began Her Career At Congreso De Latinos Unidos, An Organization Focusing On Latino-american Communities.
BOARD OF DIRECTORS 30 James KirschChief Executive Officer And Chairman Of The Board – Professional Diversity NetworkJames Kirsch Has Served As Our Chief Executive Officer And As A Member Of Our Management Board Since 2008. Mr. Kirsch Served As Chief Strategic Officer At Amightyriver.Com, A Division Of PDN From 2004 To 2008. From 1996 To 2001, Mr. Kirsch Was The Chief Executive Officer Of Especialty Brands, An Online Retail Company. Additionally, Mr. Kirsch Served As Chief Executive Officer At Imaternity.Com, The Ecommerce Partner Of Ivillage.Com From 1983 To 1996 And Manager, Vice President And Chief Operating Officer At Dan Howard Industries, A Vertically Integrated Retailer Of Apparel. Mr. Kirsch Served As Mayor Pro-tem And City Councilman, Chairperson Of The Finance Committee And Business Alliance In Highland Park, Illinois From 2001 To 2013. Barry Feierstein Barry Feierstein Is A Business Consultant Who Began His Career At McKinsey And Company. In Addition To His Consulting Services He Was Employed At The University Of Phoenix, An Online Institution Of Higher Learning And A Wholly-Owned Subsidiary Of The Apollo Group From 2010 To 2014, Serving As The Chief Business Operating Officer. Prior To That, He Served As Executive Vice President Of Sales & Marketing For Sallie Mae, A Student Loan Service Company, From December 2007 To November 2009, And Senior Vice President Of Private Credit Lending At Sallie Mae From January 2007 To December 2007.
SUMMARY CAPITALIZATION TABLE 31 Shares Outstanding % Common Stock 14,633,819 96% Equity Awards1 157,857 1% Warrants2 362,500 2% Unvested restricted stock 200,001 1% Fully Diluted Shares Outstanding 15,354,177 100% 1 weighted average exercise price: $3.752 weighted average exercise price: $8.34 Data As of September 30, 2015
SUMMARY PDN Is Uniquely Positioned To Be The Leading Resource To Reach And Recruit Diverse Talent Among The Audience Of Almost 72MM Women And 55MM Diverse Americans In The US Workforce*Currently Providing Diversity Recruitment Services For Some Of The Nation’s Largest EmployersIntensifying Regulations To Hire Diverse Candidates Has Increased Employers’ Need For Diversity Recruitment Outreach And HiringProprietary Technology Now Increasing Web Traffic, Job Seeker Applications And Operating EfficienciesRegistered Users During The Third Quarter Of 2015 Increased 19.5%, With Over 6.8MM Users In Our User Base And Over 850,000 In Our NAPW DatabaseIncreasing Momentum: $8.7 MM In Unaudited Sales Bookings In Q315 V. $1.2 MM In Q314 32 * Source: Catalyst.org