Shares of the staffing solutions platform provider ShiftPixy (PIXY) above 5% during the pre-market hours despite the firm reported mixed results. For the second quarter, the loss came in line with estimates however revenue failed to surpass estimates. The company’s stock is down 32% this year and over 67% in the last 12 months.
ShiftPixy reported a 67% jump in revenues to $13.2 million and loss contracted to $0.01 per share, an improvement from a loss per share of $0.09 reported in the prior year period. However, the top line reported was 11% down from street estimates of $14.84 million, while the bottom line came in line with expectations.
The HR management platform currently focuses on the hospitality and restaurant sectors and plans to expand its offerings in the near future. It helps to reduce the regulatory hurdles and costs to large organizations and workers who are part of the Gig economy. In the Q2 period, gross billings came in at $48.6 million, up 70% over last year. The average employees serviced through the platform jumped 48% to 9,660.
Commenting about the firm’s outlook CEO Scott Absher said, “Looking ahead, we anticipate that our rapidly developing technology will further enhance our service offerings and better enable us to meet the needs of our growing assigned workforce and client base.”
ShiftPixy offers two primary solutions using its platform, Employer Solution and Shifter Solution. The company’s growth is mainly dependent on the increasing adoption of its platform by companies who are interested in enrolling part-time/temp workers for non-core tasks. The HR platform helps them to handle regulatory and compliance issues and offers cost-effective solutions.
On the flip side, the Shifter Solution helps workers who are part of the Gig economy to find out jobs at ease using the platform when they are done with the current gig or helps them to fill in voids in the current assignment.
In order to register solid growth, ShiftPixy needs to bring in more companies and workers to its platform. It also needs to expand its service offerings to more industries, reducing its dependency on the restaurant and hospitality sectors.