Employment Hero, a Sydney-based HR software company, has hit a major milestone – crossing US$250 million in annual recurring revenue and achieving profitability for the first time since its 2014 launch.

This growth comes on the heels of its expansion into Canada through the acquisition of Humi, a local HR and payroll platform. The deal, valued at over $100 million, is one of the biggest recent transactions in Canadian tech.

Employment Hero has been on a steady growth trajectory, currently serving over 300,000 businesses and two million employees globally.

The company’s Employment Operating System streamlines employment processes, payroll, and compliance, making it a critical tool for small and medium-sized businesses.

The acquisition of Humi is a strategic power play to solidify Employment Hero’s position in North America. Humi brings deep expertise in the Canadian market, helping Employment Hero localise its offerings.

The deal aims to expand Employment Hero’s reach into the hourly workforce sector, enhancing payroll, time-tracking, and leave management functionalities for Canadian businesses.

Employment Hero's ambitious growth targets

This expansion aligns with Employment Hero’s ambitious growth targets, aiming to hit $300 million ARR by September.

However, internal documents suggest this was a scaled-back target from a previous $350 million goal, raising questions about possible financial adjustments.

The acquisition hasn’t been all smooth sailing – Humi employees have raised concerns about changes to workplace perks and practices. This highlights the usual growing pains of mergers, where company cultures sometimes clash.

Employment Hero’s success is also tied to its relentless focus on product innovation. The company made a staggering 900 product releases in 2024, demonstrating a commitment to continuous improvement.

Many of these enhancements will be rolled out in Canada this year, reinforcing a customer-first approach.

CEO Ben Thompson has framed the acquisition as a win-win, praising Humi’s leadership and reaffirming that it will continue to be Canadian-operated.

This suggests Employment Hero is keen to preserve Humi’s local identity while integrating its technology into a broader global strategy.

Overall, Employment Hero believes the move cements its global ambitions, positioning it as a major force in employment technology. But whether it can sustain this momentum while balancing employee satisfaction and revenue growth remains to be seen.