ShiftPixy (NASDAQ: PIXY) reported a wider loss in the third quarter of 2019 due to higher operating costs and expenses as well as an increase in interest expenses and inducement loss from debt conversion. The results of the employment services provider, which delayed the earnings release by a week, missed analysts’ expectations.
Net loss was $5 million or $0.15 per share, wider than a loss of $1.82 million or $0.06 per share in the previous year quarter.
Revenue climbed by 53% year-over-year to $14.3 million. The results was benefited by new clients already onboard, which provided a 57% jump in gross billings to $94.2 million from the prior-year quarter.
The average number of worksite employees increased by about 3,610 to 10,860, compared to 7,250 for the quarter ended May 31, 2018. The company believes that it is quickly penetrating its target markets which is driving rapid growth across key operational and financial metrics as ShiftPixy is just now approaching a major inflection point.
The company is inching closer to its goal of having the mobile platform serve not only to enable its shift workers to secure additional shift work but also enable its job provider clients to fill open shifts.
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Specifically, after achieving critical mass on both the employer and employee sides of the equation, ShiftPixy could begin to unleash the robust functionality of its platform including self-delivery. The enhanced feature set and mobile technology are designed to help its operator clients remediate their sky-high turnover and greatly improve profitability. This could further accelerate the company’s own growth and benefitting its efforts to create shareholder value.
Shares of ShiftPixy ended Friday’s regular session up 0.86% at $0.63 on the Nasdaq. Following the earnings release, the stock declined over 6% in the premarket session.