Employment Hero has announced it has surpassed AUD $300 million in annual recurring revenue (ARR), marking a significant milestone in its financial history and demonstrating rapid revenue growth over recent years.
The company's ARR increased from AUD $250 million at the end of the previous year, representing a tenfold rise over just five years. According to Employment Hero, the business is also on course to achieve its first annual operating profit since its establishment 11 years ago.
Employment Hero supports approximately 350,000 business customers globally through its employment operating system, which brings together payroll, recruitment, HR, and employee engagement solutions into one platform. The company states that its growth is highlighted by its expanding customer base and financial outcomes, positioning itself among a small group of Australian technology companies that have achieved a valuation exceeding USD $1 billion.
Revenue and profitability
During the first half of 2025, Employment Hero added more than AUD $30 million in new ARR. In December 2024, the company recorded its first month with a positive EBITDA, followed by a positive EBITDA year-to-date performance. Employment Hero indicated that it is on track to deliver its first full EBITDA-positive year, stating that few global software-as-a-service firms combine this level of scale with ongoing profitability.
Ben Thompson, Chief Executive Officer and Co-founder, commented on the company's trajectory, stating:
"When Dave Tong and I founded Employment Hero more than a decade ago, the goal was to create proud, confident employers who felt well equipped to employ, pay and manage their people. And we wanted to give small businesses a competitive edge. Reaching A$300 million in ARR while becoming profitable reflects the value we are delivering every day to the 350,000 businesses that use our platform. Looking ahead, our focus remains on simplifying employment and giving SMBs the infrastructure to operate at the same level as the world's largest companies."
Craig Blair, Partner and Founder at Airtree, commented on Employment Hero's progress, stating:
"Employment Hero's growth to A$300 million in ARR, alongside its achievement of profitability, reflects both the strength of its platform and the clarity of Ben Thompson's vision. The company has scaled to support hundreds of thousands of businesses across multiple markets and continues to expand its role as a leading employment operating system. We are pleased to continue our partnership with Employment Hero as it deepens its product offering and accelerates its global reach."
Product integration
Employment Hero has also expanded its recruitment product through a deeper global integration with the online employment platform Indeed. This enhancement provides customers with access to free job listings, one-click applications, and more efficient shortlisting tools, all embedded directly within the Employment Hero platform. The integration is positioned to help small and medium-sized businesses streamline their hiring processes and better compete for talent.
The enhanced features available to employers include campaign-wide free job advertisements, the ability for candidates to apply with a single click, and integrated screening questions aimed at improving the speed and relevance of candidate shortlisting.
Employment Hero has stated that the objective of this integration is to give customers the flexibility to hire from the sources most relevant to their needs while simplifying and accelerating the recruitment process.
Australian technology sector
Employment Hero is among a handful of Australian companies to achieve 'unicorn' status, joining technology businesses such as Canva, Atlassian, and Airwallex. The company noted the accelerated growth of its ARR as a factor reinforcing its role in providing employment solutions for small and medium-sized businesses.
Employment Hero's current focus is on maintaining profitability while investing in platform expansion and customer-focused features, including integrations with major candidate sources such as LinkedIn and Seek in addition to Indeed. The company continues to target opportunities to serve an expanding base of employers and jobseekers through an integrated employment platform.
