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Employment Hero has surpassed AUD $400 million in annual recurring revenue, following an AUD $100 million increase over the past 12 months.
The Australian employment software group reached the mark while remaining free cash flow positive and increasing profitability. Annual recurring revenue has grown more than tenfold in six years, from AUD $37 million in September 2020, as the business expanded across six markets.
Employment Hero serves more than 350,000 businesses and 2.5 million employees across six countries, and processes more than AUD $150 billion each year.
It attributed its recent growth to an AI-first strategy, alongside investment in recruitment, payments and an agentic software suite. The group also pointed to its position as an employment platform with a built-in talent pool, rather than one focused only on managing hiring after candidates have been sourced elsewhere.
Growth profile
The figures suggest Employment Hero has maintained expansion even as employers face a tougher operating backdrop. It has sustained a 30% annual recurring revenue growth rate while improving profitability, an uncommon combination for software businesses still scaling internationally.
Its business spans human resources, payroll and employment services, with newer activity in recruitment and embedded payroll products such as HeroClear. The company also linked its strategy to a broader aim of supporting employment during the adoption of artificial intelligence.
"Dave and I have never been more pumped about the future of this business. We've delivered huge growth while our customers have faced very tough operating conditions, and that isn't lost on us. Labour markets, and business more broadly, are going through massive AI-driven change, and it's only the start. Building the infrastructure for the future of employment through that change is a huge privilege. Our growth means we can invest hard in the next wave of innovation for our customers: payments, recruitment, our agentic suite, and the Hero Foundation's work to get as many people in jobs as possible. Dave and I are hands-on in every one of those projects, because this is the most important and energising work we've done," Ben Thompson, Co-Founder and Chief Executive Officer of Employment Hero, said.
Investor backing
Employment Hero counts Insight Partners among its backers. Rachel Geller, Managing Director at Insight Partners, said the company's recent momentum reflects strong execution and product development.
"Ben and Dave have a compelling vision for the global future of employment and labour management, and they've executed on it exceptionally well to date. Employment Hero runs a highly effective business and has turned that focus to driving stand-out innovation within its product. Employment Hero's commitment to driving real AI outcomes for customers is what sets it apart," Geller said.
The latest update also highlighted the expansion of the Hero Foundation into the UK. Alongside the company's commercial operations, the non-profit initiative forms part of its broader approach to labour market participation as businesses adopt more AI tools.
For the wider employment technology sector, the revenue milestone underlines continued investor and customer interest in software that combines payroll, workforce management and recruitment in a single platform. It also reflects demand from small and medium-sized employers seeking to manage hiring, pay and compliance through integrated systems rather than separate providers.
Employment Hero said its strategy remains centred on using AI across payments, recruitment and employment administration, while keeping a focus on getting more people into work.