"Gusto's figure represents actual revenue earned over the previous 12 months. 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 reflects money earned over the past year."
"By crossing the $1 billion revenue threshold, Gusto is clearly showing its financial might against its peers. 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, 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."
"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 ... was last valued at $17.3 billion ... Rippling ... was last valued at $16.8 billion."
"Following the December board appointment of Anthropic CTO Rahul Patil, 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. Given its relatively modest valuation compared to its revenue, Gusto is well-positioned for another fundraise, or even an IPO, at a higher valuation."
Gusto, a small-business payroll provider, reported that it surpassed $1 billion in revenue earlier this year, based on actual earnings over the prior 12 months. The company is valued at about $9.3 billion after a 2025 employee tender offer, which places it at a lower valuation relative to revenue than several HR tech peers. Deel and Rippling both crossed $1 billion in ARR, but they were valued substantially higher after recent funding rounds. Gusto also acquired Guideline for about $600 million to expand retirement plan offerings. After appointing Anthropic CTO Rahul Patil to its board, Gusto reported major efficiency gains, with AI generating half of new code and handling half of customer support cases.
Read at TechCrunch
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