Gusto -Card image 

Gusto -PDF file

Gusto - hero 

Gusto: The all-in-one HR platform streamlining payroll and benefits for US small businesses

Distributed workforces require new solutions for office operations, HR, payment, and more.

Remote Work Infrastructure

<div>
  <p>
    A deep dive into Gusto's revenue, product, competition, and TAM expansion
  </p>
</div>


<div>
  <ul>
    <li>
      <p>
        Sacra estimates Gusto's 2023 revenue to be USD 600 million, up 33% from USD 450 million in 2022. Its revenue comprises two components: high-margin subscription revenue (payroll and HR services) and low-margin commission revenue (insurance carriers).&nbsp;
      </p>
    </li>
    <li>
      <p>
        The company has over 300,000 customers, representing ~3.3% of SMBs and ~14% of SMB employees in the US.
      </p>
    </li>
    <li>
      <p>
        Gusto's product offerings include payroll services, HR ecosystem tools, and FinTech solutions like Gusto Wallet.
      </p>
    </li>
    <li>
      <p>
        The company competes with enterprise payroll providers like ADP and Paychex as well as all-in-one HR solutions like Rippling.
      </p>
    </li>
    <li>
      <p>
        Gusto has expanded its services through strategic acquisitions and partnerships, including the launch of Gusto Embedded Payroll API.
      </p>
    </li>
    <li>
      <p>
        The company's latest funding round in August 2021 raised USD 696.35 million and valued it at USD 9.5 billion. This is higher than its competitors ADP (6.1x) and Paychex (11.4x), though these companies saw flat revenue growth in 2021 while Gusto grew at about 58% YoY.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Managing employee health-related benefits

Health Benefits Platforms

<div>
  <ul>
    <li>
      <p>
        Health benefits platforms are online platforms that let employees and dependents access and manage healthcare-related services offered as part of an employer's benefits plan or an insurance plan.
      </p>
    </li>
    <li>
      <p>
        These platforms have recently gained traction due to their ability to reduce staff turnover, improve employee engagement, and attract talent. 
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


<div>
  <p>
  </p>
  <ul>
    <li>
      <p>
        Health benefits platforms are online platforms that let employees and dependents access and manage healthcare-related services offered as part of an employer's benefits plan or an insurance plan.
      </p>
    </li>
    <li>
      <p>
        These platforms have recently gained traction due to their ability to reduce staff turnover, improve employee engagement, and attract talent. 
      </p>
    </li>
    <li>
      <p>
        Drivers in this industry include shifting employee preferences, rising healthcare costs, and the need for platforms to manage complex benefits.
      </p>
    </li>
    <li>
      <p>
        Challenges include unsustainable increases in healthcare costs, data security risks, and regulatory compliance requirements. 
      </p>
    </li>
    <li>
      <p>
        Investment in the industry has maintained momentum, albeit unevenly.
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


Breaking the one-size-fits-all mold: Navigating health benefit platforms

<div>
  <ul>
    <li>
      <p>
        More than two years in, remote work seems like it&rsquo;s here to stay
      </p>
    </li>
    <li>
      <p>
        Founded in 2020, Oyster is tackling the issues related to building distributed teams
      </p>
    </li>
    <li>
      <p>
        With more than USD 220 million in funding, Oyster is gearing up for further product development to consolidate its existing offering
      </p>
    </li>
  </ul>
  <p>
  </p>
  <p>
  </p>
</div>


Oyster teardown: The future of work is distributed

<div>
  <ul>
    <li>
      <p>
        Cloud companies win big in the new normal
      </p>
    </li>
    <li>
      <p>
        FinTech becomes a key highlight
      </p>
    </li>
    <li>
      <p>
        Benchmarking the Cloud 100 winners with closest peers
      </p>
    </li>
  </ul>
  <p>
  </p>
</div>


EDGE Insights