Gusto hits $1B revenue, a figure that brings it closer to public markets

While 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. Techcrunch event This Week Only: Buy one pass, get the second at 50% off Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register before May 8 to bring a +1 at half the cost. This Week Only: Buy one pass, get the second at 50% off Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register before May 8 to bring a +1 at half the cost. San Francisco, CA | October 13-15, 2026 REGISTER NOW 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. The company has another key factor in its favor. While rivals Deel and Rippling remain embroiled in a high-profile corporate espionage lawsuit, Gusto has stayed out of those kinds of headlines and focused on its business. Gusto has long been considered an IPO candidate. Even so, a public debut appears iffy in 2026 while the IPO market still remains so frosty. When TechCrunch interviewed Gusto CEO and co-founder Josh Reeves in December, he insisted he doesn’t spend much time thinking about an IPO, preferring instead to focus on serving customers and scaling the business. When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence. Marina Temkin is a venture capital and startups reporter at TechCrunch. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation. You can contact or verify outreach from Marina by emailing marina.temkin@techcrunch.com or via encrypted message at +1 347-683-3909 on Signal. May 27 Athens, Greece StrictlyVC Athens is up next. Hear unfiltered insights straight from Europe’s tech leaders and connect with the people shaping what’s ahead. Lock in your spot before it’s gone. Most Popular Hackers steal students’ data during breach at education tech giant Instructure Lorenzo Franceschi-Bicchierai As workers worry about AI, Nvidia’s Jensen Huang says AI is ‘creating an enormous number of jobs’ Lucas Ropek Anthropic and OpenAI are both launching joint ventures for enterprise AI services Russell Brandom Ouster’s new color lidar is coming to replace cameras Sean O'Kane We’ll take it: A TikToker rallies pledges to buy Spirit Airlines after its abrupt weekend collapse Connie Loizos This tiny, magnetic e-reader could stop you from doomscrolling Amanda Silberling Uber wants to turn its millions of drivers into a sensor grid for self-driving companies Connie Loizos --- **İlgili Kaynaklar:** dijital pazarlama ve büyüme stratejileri ihtiyaçlarınız için [dijital pazarlama](https://www.leindigital.com) doğru adres.