Human Interest at $100M
Jan-Erik Asplund
TL;DR: Sacra estimates that Human Interest passed $100M of annual recurring revenue (ARR) in June 2024, up from $85M at the end of 2023 (80% year-over-year growth), riding the proliferation of the payroll and back-office SaaS like Gusto and Rippling ($350M ARR in 2023, up 100%) that are their main partners and distribution channels. For more, check out our full Human Interest report and dataset.
Key points via Sacra AI:
- Human Interest (2015), Guideline (2015), Betterment (2015), and Vestwell (2016) took the paper-based 401k process of incumbents Fidelity/Vanguard and re-invented it as an online portal through which both employers and employees could login to manage their benefits. By integrating with back-office SaaS like QuickBooks and Gusto (2012), these digital 401ks could automatically pull in employee data, lowering their admin costs, while getting distribution to startups and SMBs via their app marketplaces.
- Human Interest crossed $100M ARR in June 2024 after hitting $85M in ARR at the end of 2023, up 80% year-over-year, with a forecast of 70% revenue growth in 2024—compare to Guideline at $120M ARR, up 35% year-over-year. With ~$3.4B in assets under management (AUM) representing just 0.04% of the $7.3 trillion U.S. 401k market, Human Interest has significant room for growth compared to incumbents like Fidelity, which serves 43M individual participants with $12.6 trillion of AUM.
- Digital 401ks like Human Interest are indexed on the growing adoption of payroll and back-office SaaS like Gusto ($500M LTM revenue in April 2023) and Rippling ($350M ARR in 2023, up 100%). Human Interest now has integrations with over 400 payroll providers which have enabled it to efficiently acquire and onboard SMB customers at scale, growing to 1M plan participants across 20,000+ businesses.
For more, check out this other research from our platform:
- Human Interest (dataset)
- Guideline (dataset)
- Gusto (dataset)
- Justworks (dataset)
- Rippling (dataset)
- Guideline at $120M ARR growing 35%
- Guideline: the $80M/year 401(k)
- Kevin Busque and Steven Wu, CEO and CFO of Guideline, on hitting $120M ARR
- Contractor Payroll: The $1.4T Market to Build the Cash App for the Global Labor Market
- Jeremy Zhang, CEO of Finch, on building a universal API for employment systems
- Kurtis Lin, CEO of Pinwheel, on the rebundling of payroll into every app
- Dan Westgarth, COO of Deel, on the global payroll opportunity
