ShiftPixy Inc. (NASDAQ: PIXY) experienced a dramatic 56.1% drop in revenue for the fiscal second quarter ending Feb. 28, according to a filing with the US Securities and Exchange Commission. The Miami-based company, which provides administrative services, staffing, and a human resources information system for the restaurant and hospitality industry as well as the healthcare industry, attributed the revenue decrease in part to its focus on special purpose acquisitions company transactions in the prior year, as well as the Covid-related contraction of its legacy “quick service restaurant” sales work.

As of 12:10 p.m. Eastern time, ShiftPixy shares were down 1.95%, reaching $4.03 – 7.46% above their 52-week low. The company had a market cap of $39.8 million.

Given the current pandemic and market conditions, it is unsurprising that ShiftPixy Inc. experienced a decrease in revenue. According to the regulatory filing, the decrease was due to management’s attending to special purpose acquisitions company transactions, as well as a decrease in the average number of worksite employees by 700 for the three months ending February 28, 2023, as