ShiftPixy stumbles after disappointing Q3 report

ShiftPixy Inc (NASDAQ: PIXY) shares went firmly into the red Monday after showing some disappointing figures in the most recent quarter.

The company, based in Irvine, California, reported a third-quarter loss of $0.06 per share, versus a year-ago loss of $0.11 per share. Its revenue rose 102.6% to $9.4 million.

Gross billings grew 119.2% to $60.2 million, compared to $27.5 million for the 2017 third quarter; gross billings increased 23.7% sequentially from $48.6 million in the prior quarter.

Worksite employees increased by 3,654 to 7,648, compared to 3,994 as of May 31, 2017; the number of employees at the end of the quarter also represented a sequential increase of 850 over the number of employees at the end of the second fiscal quarter.

Gross profit was $1.5 million versus $0.6 million in the prior year period, and net loss per share was six cents during the quarter, an improvement over the net loss of 11 cents in the prior year period.

According to CEO Scott Absher, "Our business continues to grow rapidly, with the number of worksite employees and our client roster each expanding significantly, and with our financial performance reflecting strong sequential and year-over-year growth.

"With the recent opening of our fifth regional office and continued strong progress on our proprietary and sophisticated technology platform, we’re increasingly excited and proud to be playing such a critical and nationwide role in the rapidly expanding Gig Economy workplace."

Shares in the company began Monday down a dollar, or 21.6%, to $3.62, within a 52-week trading range of $2.00 to $10.36.