ShiftPixy (PIXY) Exemplifies Innovation in a Pandemic
BREAKING NEWS: ShiftPixy Labs may be a new vertical
Good day everyone,
We are initiating coverage of ShiftPixy, Inc. (NASDAQ: PIXY), a company delivering a next-gen mobile engagement technology to help businesses with shift-based employees in the gig economy workforce.
Current price $5.06 per share
Outstanding (est.) 16.6 million shares
Float (est.) 3.49 million shares
Insider holdings 73.2%
PIXY is the company that supplies gig workers to companies, primarily in the service industry, that need short term help. The process is accomplished through the ShiftPixy platform where employers and workers are connected through a mobile app. Employers post their shift needs and workers post their availability.
ShiftPixy can benefit the unemployed, under employed, or fully employed people that just want more work. ShiftPixy could be, to the food service industry, what UBER was to transportation 10 years ago.
BREAKING NEWS Yesterday 07/29/20:
PIXY just announced the launch of ShiftPixy Labs – a new suite of marketing and support services for quick service restaurant operators (QSRs) seeing increased opportunities in the gig economy due to coronavirus restrictions and lockdowns.
Through its unique gig engagement platform, ShiftPixy empowers restaurant operators to take full advantage of their human capital with powerful functionality to handle payroll, compliance, and native delivery. The Company expects ShiftPixy Labs to provide additional layers of services and engagement, from business startup clear through to customer meal delivery.
This new initiative is also designed to help restaurants re-purpose staff for deliveries during COVID-19.
According to PIXY CEO Scott Absher, “ShiftPixy Labs is the next stage in our evolution. This is a bold new project that’s aiming to change the way restaurants are built from the ground up.”
Some of the company’s larger customers are Denny’s, Taco Bell, Subway, Papa Johns Del Taco, McDonalds, Dominos, and Wing Stop.
PIXY has a FYE of August 31 so their Q3 ended May 31 and the results were posted two weeks ago:
Revenues for Q3 were down as many of their customer’s businesses were simply closed due to the pandemic.
We want to consider the rapid “pre covid” growth in PIXY revenues:
FYE 2019 $53M
FYE 2018 $34M
FYE 2017 $20M
FYE 2016 $8M
The absence of revenues apparently gave PIXY time to make some changes that may benefit the company in a post business closure environment.
PIXY improved their balance sheet with a cash position of $10.8 million and no long-term debt as of May 31, 2020.
They fully converted all convertible debt outstanding.
Despite COVID-19 related impacts on their Southern California based restaurant customers, gross billings grew 21%.
Despite the impact of COVID-19, their customer count continues to increase with approximately 81 clients representing over 300 customer locations and 2,700 billed employees, an increase of 106% over Q3 2019.
PIXY has grown to 3,200 billable employees at the end of June, but they are staffed to manage up to 50,000 active worksite employees with their current corporate overhead.
We think that the tiny float, innovation and flexibility in the business model, high insider position, a quality customer base, and being a frontrunner in a new industry may be factors that not only grow the company in a less hostile food service environment, but also could support a higher share price.
The current market cap for PIXY is at $81M, or 1.50X the FYE 2019 revenues. High growth companies with disruptive business models often exhibit a much higher price/sales ratio.
If we look at the chart below (click the link), we can see spikes in the PIXY share price that seem to occur in tandem with press releases from the company. The April spike occurred as the company announced it would assist certain customers with leveraging PPP funding provided by the government in support of their employees.
The May spike in the share price came on the heels of a deal inked with 11 Del Taco locations.
We cannot help but wonder if the current press about ShiftPixy Labs, a potential new vertical for the company, could have the same effect on the share price in the near term.
We will be back with updates soon,
The Traders News Group
Do we disclose any information to outside parties?
We hate spam and we do not sell, trade, or otherwise transfer to outside parties your personally identifiable information.
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form. This includes your email address only.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address
What do we use your information for?
When we collect your email it is used for one purpose to send you the free information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, other than for the express purpose of delivering the information on small cap stocks that you requested.
We send periodic emails
The email address you provide may be used to send you information, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use a secure third party to send email to you.
Because we value your privacy we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act. We therefore will not distribute your personal information to outside parties without your consent.
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. TNS LLC’s parent company has been compensated twenty five thousand dollars cash via bank wire by venado media llc for this weeks coverage of pixy. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
TNS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. TNS LLC is not a Broker/Dealer and does not engage in high frequency trading.