Gusto
Overview
Gusto, Inc. is a prominent HR and payroll software company that offers a comprehensive platform designed for small and medium-sized businesses (SMBs). Launched as ZenPayroll in 2011, Gusto has grown significantly to serve over 400,000 businesses across the United States. The company is headquartered in San Francisco, California, and was co-founded by Joshua Reeves, Tomer London, and Edward Kim. Gusto has successfully raised over $746 million through various funding rounds, and as of 2024, the company had achieved a valuation of approximately $9.5 billion.
Recent Developments
Gusto has been actively expanding and enhancing its platform with significant developments in 2024 and 2025:
- June 2025: Gusto launched a $200 million employee tender offer led by the Ontario Teachers’ Pension Plan, allowing current and former employees to liquidate shares, maintaining a valuation of $9.3 billion.
- April 2025: Partnered with HR for Health to integrate its payroll infrastructure with HR for Health’s compliance software, offering a new streamlined payroll solution tailored for healthcare providers.
- July 2024: Achieved $735.5 million in revenue, reflecting a significant increase from 2023, showing an expanded user base and increased adoption across its services.
- August 2025: Acquired retirement-plan provider Guideline, valued at $1.1 billion, to integrate retirement planning into Gusto’s offerings for enhanced SMB payroll and benefits solutions.
- February 2025: Introduced Gusto Compliance to help small businesses manage complex regulatory environments involuntarily generated by changes in labor laws and tax regulations in various states.
- January 2025: Recognized by Fast Company as the Most Innovative Company in Human Resources for the second consecutive year, signaling its leading position in transforming how HR and payroll are managed.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2011 |
| Headquarters | San Francisco, CA, USA |
| Founders | Joshua Reeves, Tomer London, Edward Kim |
| Revenue | $735.5 million (2024) |
| Profits | Cash flow positive as of 2024 |
| Key Investors | General Catalyst, T Rowe Price, Fidelity |
| Industry | HR and Payroll Software |
| Number of Employees | 3,623 |
Early History
Gusto started as ZenPayroll in 2011, targeting small U.S.-based businesses with a simplified cloud-based payroll processing solution. The founders, inspired by their past experiences and family backgrounds in small businesses, identified the gaps in existing payroll solutions that were cumbersome and prone to error. Their approach emphasized ease of use and eliminating administrative burdens associated with payroll compliance. Gusto's innovative platform was met with positive reception, prompting gradual expansion into broader HR solutions, onboarding, and employee benefits administration by 2014.
Company Profile and Achievements
Gusto's business model centers on its all-in-one HR platform that automates payroll, benefits, and compliance, primarily targeted at SMBs. Key achievements include:
- Integrated solutions for managing payroll, benefits, and compliance through a user-friendly interface.
- Introduced embedded payroll solutions for third-party applications via Gusto Embedded Payroll, expanding its reach within vertical software ecosystems.
- Expanded internationally with Gusto Global, facilitating payroll and compliance in multiple countries to accommodate remote and global teams.
- Acquired key companies like Ardius and Symmetry to enhance tax credit services and compliance capabilities for customers.
- Leveraged AI to optimize compliance support and perform repetitive HR tasks, reducing administrative burden for users.
Current Operations and Market Position
Gusto is well-positioned as a leader in providing comprehensive HR solutions tailored for SMBs. The company continues to expand its market share by innovating its product offerings with new features like AI-driven compliance tools and international payroll capabilities. Gusto's competitive advantage lies in its integrated ecosystem that reduces the need for multiple HR software, providing a seamless experience for users. This strategy has enabled Gusto to maintain a high Net Promoter Score (NPS) and achieve robust customer retention amidst a competitive market landscape.
Conclusion
Gusto has become a pivotal player in the HR tech industry, transforming how SMBs manage payroll, HR, and benefits. By leveraging innovative technology and strategic acquisitions, Gusto addresses the complexity of compliance and operational efficiency for its users. Looking to the future, Gusto is poised to continue its upward trajectory, with plans focusing on expanding international capabilities and further integration of AI solutions. As the market for HR solutions continues to grow, Gusto's comprehensive platform and adaptive strategies ensure it remains a top choice for SMBs navigating an increasingly complex regulatory landscape.