The HR software and payroll solutions provider, Gusto, has been making waves in the world of private company valuations. Though Gusto is not publicly traded, there are investment opportunities available for pre-IPO trading through companies such as EquityZen and ForgeGlobal.
Gusto’s latest post-money valuation reached $10 billion in August 2021, indicating significant interest from investors despite being a privately held company. This is supported by its successful Series E – II funding round, where it raised an impressive sum of $55 million back in May 2022.
Founded in 2011, Gusto offers a range of payroll services to businesses, including payments and employee benefits management. Despite experiencing rapid growth since its inception, its revenues stayed at $100 million in 2018.
The question then arises – why is Gusto receiving so much attention from investors if it isn’t a publicly traded company? The answer lies in the substantial value that Gusto brings to its clients. Its innovative technology streamlines payroll processes and simplifies employee benefits management.
As remote work continues to increase in popularity over the years due to unavoidable circumstances like pandemics or sudden natural disasters alike which will sometimes make physical working impossible; more people join this platform investing great trust on its capabilities.
The Growing HR and Payroll Software Industry Driven by Gusto Stock and Increasing Global Demand
The HR and Payroll Software industry has experienced substantial growth over the past five years in the US, resulting in a market size of $15.4 billion with a CAGR of 5.1%. The global market was valued at $25.30 billion in 2022 and is expected to reach $55.69 billion by 2031, with a CAGR of 9.2%, while the HR software market grew to USD 21630.26 million in 2021 and is predicted to expand at a CAGR of 10.26% during the forecast period.
The continuous increase of workforce worldwide is driving demand for HR and Payroll Software solutions, leading many companies to invest heavily in their development.
Furthermore, it is projected that the HR payroll software market will have a CAGR of 10.60% during the forecast period from 2022 to 2030, increasing from USD 27.65 Billion in 2022 to USD 61.88 Billion by 2030.
By the end of the year up until 2026, HR payroll software’s market size is also estimated to increase by USD 2.09 billion, with its growth momentum accelerating at a CAGR of about 9%.
As remote work policies are being adopted by more businesses globally, investing in effective HR and Payroll Software solutions will be crucial for efficient business management strategies for sustainable growth and success.
Investing in HR Tech: Exploring Publicly Traded Competitors to Gusto Stock
Gusto is a company that offers cost-effective payroll and benefits software solutions to small businesses. Although it is not yet publicly traded, investors are interested in Gusto stock as its popularity grows.
For those considering investing in payroll and human resources technology, there are several publicly traded competing companies worth looking into. These include Paychex Flex, ADP Workforce Now, QuickBooks Payroll, TriNet, Paylocity, and Workday HCM. All of these companies offer features similar to those provided by Gusto.
Paychex Flex is a cloud-based platform that offers HR management solutions such as tax filing, time tracking and employee benefits administration. Similarly, ADP Workforce Now provides services like payroll processing and benefits administration. QuickBooks Payroll is an Intuit product that has expanded into the HR tech industry from its accounting software background.
Meanwhile, TriNet specifically caters to small- to medium-sized businesses providing outsourcing HR solutions. Lastly, both Paylocity and Workday HCM have comprehensive HR management software suites that include features like talent acquisition and performance management alongside payroll processing.
|Growth Rate (CAGR)
|Market Size (2022)
|Projected Market Size (2030)
|Projected Increase by 2026
|$10 billion (August 2021)
|$25.30 billion (global)
|$61.88 billion (global)
|USD 2.09 billion
In conclusion, while Gusto is not yet publicly traded, it has been drawing significant attention from investors due to its innovative technology and commitment to simplifying payroll processes. As the HR and Payroll Software industry continues its steady growth trend, with a projected CAGR of 9.2%, investing in effective HR and payroll solutions will become crucial for businesses worldwide.
Gusto’s competitors may vary in investor popularity; however, they all provide viable options for gaining exposure with publicly traded companies in the fast-growing HR tech market. It’s important to note that there may be other competitors beyond this list worth considering.
Investors who continue to monitor Gusto’s development in anticipation of future IPOs or direct listings on exchanges like NYSE or NASDAQ can also diversify their investment portfolios by observing other players competing with Gusto in the same space.