GoKawiilWhile AI disruption looms over many legacy SaaS companies, several HR tech startups seem to be thriving.
One of these companies is small-business payroll provider Gusto. The 14-year-old company, last valued at over $9 billion, just announced that it surpassed $1 billion in revenue earlier this year. Unlike many startups that report annualized recurring revenue (ARR) — an estimate of the value of their contracts in the upcoming 12 months — Gusto’s figure represents actual revenue earned over the previous 12 months.
Gusto was last valued at at $9.3 billion, Fortune reported, when it launched a $200 million tender offer for its employees in June, 2025. The deal valued the company about where it was valued in early 2022.
That’s a bargain for Gusto investors compared to its decacorn competitors. For instance, Deel, which serves large international businesses, crossed $1 billion in ARR last year. The company was last valued at $17.3 billion when it raised a $300 million round co-led by Ribbit Capital and Andreessen Horowitz in October.
Meanwhile, Deel’s primary rival, Rippling, which last month announced that it also hit $1 billion in ARR, was last valued at $16.8 billion after raising $450 million in May 2025.
By crossing the $1 billion revenue threshold, Gusto is clearly showing its financial might against its peers.
The company has been making other big moves, too. Last year, it completed the acquisition of Guideline, a startup offering retirement plans to small and medium businesses, for about $600 million, as we reported.
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