ShiftPixy, Inc., a California-based staffing enterprise that designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced operating results for the year ended August 31, 2019 (“2019”).
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2019 Financial Highlights
- Loss per share improved to $0.57 in 2019 compared to $0.58 for 2018.
- Gross billings grew 59% to $353 million, compared to $222 million for 2018. Q4 billings exceeded $100 million for the first quarter in our history at $105 million for an exit annualized billings rate of over $420 million.
- Revenues increased 53% to $53 million, compared to $35 million for 2018.
- Gross profit was $12.4 million, increasing 125% over 2018 gross profit of $5.5 million due to improving margins and workers compensation cost savings. Gross profit per worksite employee improved to $1,200 for 2019 from $800 for 2018.
- Loss from Operations improved to $9.7 million from $11.6 million in 2018.
- EBITDAS Loss (Operating Loss excluding depreciation and share-based compensation) improved to $8.3 million for 2019 from $11.0 million for 2018 due to improved margins and reduced spending on our mobile application, offset by increased operations costs.
- Investment in our mobile application and technology solution deployment decreased to $4.9 million in 2019 from $7.5 million in 2018 due to reduced costs relating to movement to our new in-sourced development team. Total Human Resource Information System (HRIS) and mobile application investment is $15.5 million to date.
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2019 Operational highlights
- The number of employees billed during the year and retained in our employee HRIS exceeded 25,000.
- The active number of worksite employees billed increased to 13,100 at August 31, 2019, a 54% increase, from 8,500 at August 31, 2018.
- Average gross billings per worksite employee increased by 4.3% to $33,600 in 2019 from $32,200 in 2018
- Average operating support costs per billed worksite employee improved in 2019. We have staffed to manage up to 50,000 active worksite employees with our current corporate overhead.
- Our dispute with our outsourced software development partner delayed our HRIS and mobile application launch in 2019 and necessitated our move towards in-house development.
“We continue to see strong growth in our legacy business which has driven top line expansion and improvement in our operating metrics, including gross billings and gross profits for 2019,” stated Chief Executive Officer, Scott Absher. ”Delays in the launch of our mobile application solution are now behind us and the project is now back on track and well received by our initial launch customers. We believe it will support revenue growth in 2020 from both significantly higher worksite employee counts and added technology features. The reception from our target customers has been phenomenal and we expect to see a significant increase in our business activity levels as we move into calendar 2020 and continue our focus on creating long-term shareholder value.”
ShiftPixy is a disruptive human capital services enterprise, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce.
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