Employment Hero reaches profitability
Make us a preferred source
Make us a preferred source on Google
The news: Human resources software unicorn Employment Hero has reached profitability for the first time since its launch in 2014.
The numbers: The Sydney-based company announced that it has surpassed $250 million in annual recurring revenue (ARR).
The context: According to internal documents from October, Employment Hero is targeting an ARR of $300 million by September this year. However, one former employee said the $300 million ARR goal was a decline from a previous target of $350 million, set a month earlier.
The milestone follows Employment Hero's $100 million buyout of Canadian HR and payroll outfit Humi last month, marking the company's third major acquisition, as well as its entry into the North American market. Capital Brief later reported that Humi employees expressed concerns about the scrapping of established perks and workplace practices at the firm.
What they said: "This represents an exciting milestone for Employment Hero, our entire team and most importantly our customers. Combined with the exciting acquisition of Humi and a really innovative product roadmap 2025 is going to be our most exciting year yet," Employment Hero's chief executive Ben Thompson said in a post on LinkedIn.
The sources: Employment Hero blog, LinkedIn
