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ShiftPixy acquires staffing firm to boost Western U.S. presence

EditorIsmeta Mujdragic
Published 04/02/2024, 10:29 AM
Updated 04/02/2024, 10:29 AM

MIAMI - ShiftPixy, Inc. (NASDAQ:PIXY), a company specializing in human capital services for the Gig Economy, has recently executed an asset purchase agreement to acquire a prominent staffing and human resources provider in the Western United States. The acquired company, which remains unnamed, boasts an annual revenue surpassing $50 million and maintains a significant client base of 100 blue-chip customers.

This strategic acquisition is part of ShiftPixy's ongoing efforts to expand its national footprint and leverage its technological edge in the workforce management sector. The seller is recognized for its extensive reach across multiple states and a substantial temporary workforce exceeding 10,000 employees.

Scott Absher, CEO of ShiftPixy, stated that this acquisition aligns with the company's accelerated growth ambitions and is a continuation of their national expansion strategy. "Our goal is to continue our national roll-up through 2024 and leverage our technology advantage in today's world of work," Absher explained.

ShiftPixy's platform is designed to assist businesses in managing shift-based employees, helping them to comply with regulatory mandates and reduce administrative burdens. The company's expertise in workers' compensation and compliance programs is expected to strengthen with this acquisition, as it aims to address the needs of the evolving Gig Economy.

The information reported is based on a press release statement from ShiftPixy, Inc.

InvestingPro Insights

As ShiftPixy, Inc. (NASDAQ:PIXY) embarks on its strategic acquisition to enhance its position in the workforce management sector, it's important for investors to consider the current financial health and market sentiment surrounding the company. According to recent data from InvestingPro, ShiftPixy's market capitalization stands at a modest $16.35 million, reflecting the size of the company in comparison to its peers.

The company's financial performance has shown significant challenges, with a revenue decrease of 51.63% over the last twelve months as of Q1 2024. This decline is further evidenced by a quarterly revenue drop of 28.33% in Q1 2024, indicating potential headwinds in sales growth. Additionally, the gross profit margin sits at a relatively low 5.8%, which could raise concerns about the company's profitability and cost management efficiency.

InvestingPro Tips highlight several critical points for potential and current investors. ShiftPixy is currently facing a cash burn issue and has been flagged for its weak gross profit margins. Furthermore, analysts have raised concerns about the company's ability to generate profit, with expectations of a sales decline in the current year. These factors, combined with a high level of price volatility, may influence investment decisions.

For investors seeking a deeper analysis, there are 17 additional InvestingPro Tips available for ShiftPixy, which could provide further clarity on the company's financial health and future outlook. To access these insights and make more informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/PIXY.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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