It seems a new HR technology company starts up every day – and some are making billions of dollars as companies embrace software as a service
HR software is becoming an increasingly lucrative market, it seems.
Kronos has become one of the first HR technology companies to pass $1billion in annual revenue, it announced this month. But it stands tall amongst a bevy of small startups vying for attention from both investors and enterprises.
PeopleDoc, which makes software for document management, recently raised $17.5million in a second round of funding, counting Motorola and Starbucks as customers. Meanwhile, payroll and benefits technology company Zenefits announced $15million in funding in January, and startup Intellinote announced $4.3million in fresh cash.
And many HR software companies are having a ball on the stock market: in the less than two months since TriNet floated, its price has risen from $16 to nearly $24.50. The HR outsourcing group saw revenue above $1.6billion in 2013. HR SaaS company Paycom is looking to follow suit on the New York Stock Exchange. However, California-based software company Workday has seen its price fall from $109.92 in February to just over $70 today. Still, the stock market has been a successful venture for the company: its price at IPO was just $28.
In response to Kronos’ announcement that it has grown beyond $1billion in revenue, CEO Aron Ain said he was “delighted”, claiming stake as “the first vendor to do so in the workforce management market”.
