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Rippling: The integrated HR and IT SaaS provider to enterprises

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

Remote Work Infrastructure

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 A deep dive into Rippling's financials, product, competitive environment, and market opportunities...
 
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 Sacra estimates that Rippling hit USD 350 million in annual recurring revenue (ARR) in 2023, up about 100% from USD 175 million in 2022. The company is currently valued at USD 11.25 billion, implying a forward revenue multiple of 32x.
 
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 Rippling's revenue includes high-margin subscription fees from HR and IT SaaS, low-margin insurance and benefits revenue, and management fees for Professional Employer Organization (PEO) services. Most of Rippling's revenue comes from subscriptions, with insurance and benefits accounting for less than 10% of its top line.
 
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 The company's basic SaaS package starts at a USD 35 monthly fee plus USD 8 per employee per month. It includes a workforce management platform, employee onboarding and offboarding, payroll, time tracking, and integrations, and additional components like benefits and IT SaaS are sold as modular bolt-ons.
 
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 Rippling differentiates itself through its multi-product approach, offering HR, payroll, IT security, and device management SaaS as an SMB and mid-market companies subscription. This strategy provides multiple entry points into a company and allows efficient cross-selling of other products.
 
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 The company aims to leverage its middleware to expand into various administrative load use cases centered on employee data, such as procurement, corporate spend management, and communication/collaboration. Rippling has 10+ product lines generating over USD 1 million in ARR and plans to launch one new product every quarter for the next 12 months.
 
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