Professional Diversity Network (NASDAQ: IPDN) reported significant challenges in the current recruiting market. The company provides online and in-person networks with a focus on enabling diverse people to access networking, training, education and employment opportunities.

Revenue at the company fell 8.2% to $1.7 million in the second quarter, predominantly attributable to a reduction in demand for contracted software development as compared to the same period in the prior year. However, the total pre-tax cost and expenses for the quarter also decreased by 30.6%, Professional Diversity Network reported in its announcement issued Aug. 13.

“The current recruiting market presents significant challenges. However, our recruitment services experienced a 3.2% revenue increase during the first two quarters of this year compared to the same period last year, demonstrating the effectiveness of our operational restructuring efforts,” CEO Adam He stated in a press release. “We remain committed to strategically targeting industries to establish ourselves as a leader in the diversity recruitment sector.”

Revenue at Professional Diversity Network’s RemoteMore brand, which provides remote-hiring marketplace services for developers and companies, was approximately $429,000 in the quarter, down 28.8% from the prior-year period. He noted RemoteMore has faced a slow demand for IT outsourcing in the first half of this year but is engaged in discussions with potential clients and is “cautiously optimistic about the possibility of converting some of these discussions into tangible results.”

Revenue from the company’s National Association of Professional Women Network (NAPW) also fell, down by 20.6% year over year in the second quarter to approximately $108,000.

Professional Diversity Network Inc. - Q2 2024

Revenue by Type

Share price

 Shares in Professional Diversity Network were down 5.49% to 46 cents as of 10:52 a.m. Eastern time today. They were 5.66% above their 52-week low.