While AI disruption looms over many legacy SaaS companies, several HR tech startups seem to be thriving.<\/p>\n
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) \u2014 an estimate of the value of their contracts in the upcoming 12 months \u2014 Gusto\u2019s figure represents actual revenue earned over the previous 12 months.<\/p>\n
Gusto was last valued at $9.3 billion<\/a>, 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<\/a>.<\/p>\n That\u2019s a bargain for Gusto investors compared to its decacorn competitors. For instance, Deel, which serves large international businesses, crossed $1 billion in ARR<\/a> 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.<\/p>\n Meanwhile, Deel\u2019s primary rival, Rippling, which last month announced that it also hit $1 billion in ARR, was last valued at $16.8 billion<\/a> after raising $450 million in May 2025.<\/p>\n By crossing the $1 billion revenue threshold, Gusto is clearly showing its financial might against its peers.<\/p>\n The company has been making other big moves, too. Last year, it completed the acquisition of Guideline<\/a>, a startup offering retirement plans to small and medium businesses, for about $600 million, as we reported<\/a>.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco, CA Following the December board appointment of Anthropic CTO Rahul Patil<\/a>, Gusto is already reporting massive efficiency gains. According to the company, AI now accounts for 50% of all new code generation and handles an equal share of customer support cases.<\/p>\n Given its relatively modest valuation compared to its revenue, Gusto is well-positioned for another fundraise, or even an IPO, at a higher valuation. The company has another key factor in its favor. While rivals Deel and Rippling remain embroiled in a high-profile corporate espionage lawsuit<\/a>, Gusto has stayed out of those kinds of headlines and focused on its business.<\/p>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026\n\t\t\t\t\t\t\t<\/p>\n