ShiftPixy, Inc. (NASDAQ:PIXY) Q3 2019 Earnings Conference Call - Final Transcript
Jul 22, 2019 • 08:30 am ET
Scott W. Absher
the next important phase of our business. For several quarters now, we've been quickly signing up new operators and thousands of workers, all in an effort to build the critical mass necessary for the next phase.
Over the next several weeks, we plan to actually turn on robust functionality of the sophisticated platform our developers have been so hard at work on. This is [Indecipherable] inflection point for us at ShiftPixy and one that we believe will further spur adoption of our platform and therefore our own growth, profitability and efforts to create shareholder value. Our self-delivery platform, in particular, is arriving at the perfect time to help our growing number of restaurant operator clients. We debuted this innovative extension of our human capital platform at the National Restaurant Association show in May, and it's already receiving a strong reception in the marketplace.
With the convenience economy rapidly expanding, our clients welcome the opportunity to address their toxic turnover in delivery quality issues, not to mention their own profitability challenges stemming from the advent of self-delivery without having to invest in expensive technology. Related to creating shareholder value, last week we announced a stock repurchase plan, reflecting our belief that recent share prices haven't adequately reflected our significant progress since going public in June of 2017. Our Board has granted authorization to repurchase up to 10 million shares of our common stock and it's our intention to opportunistically buy back shares as we feel appropriate, while, of course, also investing what's necessary to continue ShiftPixy's rapid growth. More on this in Q&A, I'm sure.
I'll also -- I'll now turn the call over to Patrice, who will take us through the quarterly results in greater detail and provide an update on our improving liquidity outlook and our progress reaching cash flow break even. Patrice?
Patrice H. Launay
Thank you, Scott. It's my pleasure to provide everyone with an update this morning. Starting with the topline, our fiscal third quarter results includes gross billings of $94 million, reflecting 14% sequential growth and 57% growth over the same period last year. As Scott mentioned, our average number of worksite employees during the quarter was 10,860 and that reflects 12% sequential growth and 50% growth year-over-year. Our gross profit extended to $2.7 million from $1.5 million the prior year third quarter. And that reflects a gross margin of 19%, up from 17% a year earlier. Similar to last quarter, the higher gross margin is attributable to the skill advantage in workers' compensation programs, as well as favorable outcome on employer payroll taxes. We generated a net loss per diluted share of $0.15 compared to a net loss per diluted share of $0.06 the prior year third quarter.
Turning to the balance sheet now. We ended up the month of May with approximately $2.9 million in cash, which was above the $1.6 million level at the start of our fiscal year in September. I want to provide a feel for our improving financial outlook as well. As