ShiftPixy Inc. (NASDAQ: PIXY) — which earlier this month announced the sales of its PEO business — reported revenue rose 50.8% in its fiscal first quarter ended Nov. 30, according to a filing on Tuesday with the US Securities and Exchange Commission.
The Irvine, California-based firm reported gross margin narrowed and net loss edged higher.
| (US$ thousands) | Q1 2020 | Q1 2019 | % change |
| Net revenue | $15,866 | $10,520 | 50.8% |
| Gross profit | $3,314 | $3,386 | -2.1% |
| Gross margin | 20.9% | 32.2% | |
| Net loss | ($2,556) | ($2,246) | nm |
ShiftPixy’s PEO operations represented 60% of its business, and the sale was announced Jan. 9 after the close of the first quarter. The company said it plans to focus on its staffing/technology model serving the quick-service restaurant and staffing industries. The company had also, in December, conducted a one-for-40 reverse stock split.
In Tuesday’s SEC filing, ShiftPixy reported that first-quarter revenue rose because of an increased number of worksite employees. Average billed employees increased 44% over fiscal 2019 and the average revenue per worksite employee rose approximately 6%.
Share price and market cap
Shares in ShiftPixy were down 2.14% to $15.17 as of 11:44 a.m. Eastern time; the company had a market cap of $14.18 million, according to FT.com.