ShiftPixy, Inc. (NASDAQ:PIXY) Q3 2019 Earnings Conference Call Transcript

Jul 22, 2019 • 08:30 am ET

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ShiftPixy, Inc. (NASDAQ:PIXY) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the ShiftPixy Fiscal Third Quarter 2019 Financial Results Conference Call. [Operator Instructions] I'll now turn the call over to Vance Edelson with ICR.

Executive
Vance Edelson

Thank you, operator and welcome, everyone to this morning's call. I'm here with ShiftPixy's CEO, Scott Absher; and CFO, Patrice Launay. Before we begin, I want to remind everyone that today's call will contain several forward-looking statements, all of which are subject to risks and uncertainties, and the company assumes no obligation to update or revise any forward-looking statements. These risks and uncertainties, some of which are detailed in today's press release and in the company's SEC filings, could cause actual results to differ materially from those in the forward-looking statements. On today's call, management will be referring to certain non-GAAP financial measures. These non-GAAP measures allow investors to analyze operating trends and compare results of operations in the current period to prior period results based on the company's fundamental performance. Also, any comparisons made today to prior period results are based on a comparison to the same period in the prior year unless otherwise stated.

Within the past hour, ShiftPixy released its financial results for the fiscal third quarter ended May 31, 2019. If you do not have a copy of the press release, please visit the Investor Relations section of the company's website. With that, it is my pleasure to hand the call over to ShiftPixy's Chief Executive Officer, Scott Absher.

Executive
Scott W. Absher

Thank you, Vance and good morning, everyone. We appreciate you joining our call and we're excited to bring you up-to-date on our rapid progress. For anyone who's new to the ShiftPixy story, we invite you to visit our website to learn more about how we're bringing a proprietary, sophisticated and compliance-oriented technology platform to the Gig Economy, one that helps businesses with the many burdensome compliance requirements they face while affording shift workers the opportunities and flexibility they crave.

Right now, I'd like to dive in with the highlights of our quarterly performance. And some very recent announcements we've made before turning it over to Patrice who will walk us through the financials and operating metrics in greater detail. We'll then close with a Q&A session.

During our quarter ended May 31st, ShiftPixy's rapid growth continued, driven by increased penetration of our target markets. Taking a look at the overall numbers, our gross billings climbed 57% versus the prior year third quarter, including a 14% increase just since the February quarter. This growth was the result of growing -- the growing average number of worksite employees on our platform, which by the end of May had reached 10,860 or an increase of 50% over the past year. We're also pleased to report a higher gross profit of $2.7 million, despite the early stage nature of our business. While it's gratifying to see the rapid acceptance of our platform by both employers and employees alike, who clearly appreciate the value of our business proposition, what's more exciting is that we're quickly approaching