While many legacy software-as-a-service (SaaS) companies struggle with the looming shadow of artificial intelligence (AI), Gusto, a small-business payroll provider, has achieved a significant financial milestone. The company, last valued at over $9 billion, recently reported crossing the $1 billion revenue threshold for the first time.

Unlike its competitors who report annualized recurring revenue (ARR) as an estimate of future contracts, Gusto’s figures reflect actual revenue earned over the past 12 months, showcasing a robust financial performance. This achievement stands in contrast to other HR tech giants such as Deel and Rippling, which have also hit $1 billion in ARR but at much higher valuations.

Recent moves include the acquisition of Guideline for around $600 million, bolstering Gusto’s offerings in retirement plans for small businesses. Additionally, with AI now accounting for 50% of all new code generation and handling an equal share of customer support cases, the company is clearly integrating technology deeply into its operations.

Gusto’s CEO, Josh Reeves, reportedly remains focused on serving customers and scaling the business rather than pursuing an initial public offering (IPO). However, with such a strong revenue performance, Gusto may soon find itself in the spotlight as investors and analysts weigh its potential for further growth and market entry.