Gusto’s path to $1 billion in revenue, milestone-by-milestone
Fortune • • business
Key Points:
- Gusto, founded in 2012 as ZenPayroll by Eddie Kim, Tomer London, and Josh Reeves, has grown from a small startup to a $9.3 billion company with over 500,000 customers, recently surpassing $1 billion in annual revenue.
- The company’s growth milestones included reaching $1 million in revenue in 2014 with 5,000 customers, $100 million in ARR in 2019 with 95,000 customers, and $500 million in 2023 with 300,000 customers, each marking significant operational and strategic evolution.
- Gusto’s founders emphasize their commitment to serving small businesses rather than moving up-market, believing that AI and technological advances will lower barriers and drive growth in the small business sector.
- CEO Josh Reeves predicts a reversal of workforce trends due to AI, suggesting a future where 80-90% of the workforce will be employed by small businesses, reminiscent of the pre-Industrial Revolution era.
- Despite rapid growth, Gusto plans to maintain a stable headcount of about 3,000 employees while potentially serving up to one million customers, reflecting efficiency and scalability in their business model.
