ShiftPixy (PIXY) revealed decent Earnings results despite Covid-19 woes

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ShiftPixy, Inc. (NASDAQ: PIXY), a Florida-based recruiting business that develops, operates, and offers access to an innovative, transformative network that enables work in the quickly expanding Gig Economy, released financial results for the year ended August 31, 2020.

Owing to new consumer acquisitions and COVID-19 rehabilitation for current clients, quarterly gross billings increased to $18.7 million for Q4 2020, a sequential rise of $4.3 million or 30 percent from Q3 2020.

Gross billings from ongoing activities were $66 million for the entire fiscal year, compared to $73 million for 2019, largely due to COVID-19 results in 2020, as well as consumer cancellations primarily during calendar 2019 in the early part of 2020.

For Q4 2020, quarterly sales increased to $2.4 million, a sequential 20 percent improvement from Q3 2020.

Revenues declined 17 percent to $8.6 million for the whole fiscal year, compared to $10.5 million for 2019, largely as a result of our strategic decision to change the company’s consumer attention during 2019, as well as the negative effect of the headwinds of COVID-19 growth.

Gross profit for 2020 was $1.0 million, falling 50 percent from $1.9 million in gross profit for 2019, due to rises in workers’ compensation costs.

Operating loss for 2020 rose from $15.6 million in 2019 by $6.0 million to $21.6 million, of which $3.5 million was a non-cash asset depletion fee attributed to previously capitalized software, together with an increase in stock-based compensation of $1.0 million.

EBITDAS Loss increased from $14.7 million for 2019 to $16.2 million for 2020 due to reduced margins of $1.0 million and increased investment in the production of our mobile application, balanced by lowered operating costs.

Investment in our implementation of smartphone apps and infrastructure technologies has grown from $3.1 million in 2019 to $4.2 million in 2020. Complete spending in the Human Resource Information System and smartphone apps is reportedly $20.7 million.

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