hSenid Business Solutions (hBS) released its financial results for the quarter ending on December 31, 2023, reporting a 23 percent year-over-year increase in revenues. The PeoplesHR Cloud business, constituting 76% recurring revenue, remains the primary driver having recorded a 40% growth year-on-year. The Company achieved a critical milestone in its growth journey by surpassing $3 Million in Exit ARR (Annualized Recurring Revenue). With continuous investments made in revamping and building a global sales workforce, the APAC market is now yielding the majority of new deal closures for the concluded quarter. The company’s core recurring revenue, an essential component for a SaaS business, has reported further year-over-year growth of 34 percent. While the higher operating cost base resulting from the investments made in talent and market development continue to impact the company’s bottom line, the core business margins continue to demonstrate steady improvements across the 3 concluded quarters of the financial year 2024.
Commenting on the recurring revenue growth of the company, Founder and Chairman Dinesh Saparamadu noted: “Surpassing the $3 Million Exit ARR mark demonstrates that the investments we have made with the IPO funds are beginning to yield its results. Building a strong recurring revenue base is the key to have non-linear growth in revenue typically observed in software businesses.”
During the quarter, the company further utilised LKR 34.0 million of its IPO funds in product development. Consequently, the company has now fully utilized the IPO funds allocated for product and market development. Currently, the company is assessing multiple options for the utilization of the remaining IPO funds allocated for pursuing inorganic growth opportunities.
Commenting on the results of the quarter, CEO Sampath Jayasundara stated, “We have navigated through a period of investments in the middle of a challenging operating environment, and we are pleased to see the improvements in our operating margins. Both our core business EBIT and EBITDA margins have improved steadily over the last three concluded quarters. We expect this positive trend to continue with the growth in revenues and successful completion of cost optimisation initiatives.”
During the quarter, hSenid Business Solutions achieved noteworthy recognition, securing the Gold Award at the 31st Annual Export Awards 2023 for the fourth consecutive year. The company was also recognized as the Sri Lanka and Maldives Microsoft ISV (Independent Software Vendor) Partner of the Year 2023. Furthermore, G2, a leading software review portal in the APAC region, acknowledged the company’s core brand PeoplesHR as a ‘High Performer’ in both Asia and APAC in the Core HR category in the G2 Winter 2024 Reports. These ratings directly reflect the strong presence of the PeoplesHR brand in the region.
PeoplesHR is a leading human capital management software solution focusing on digitalising the entire employee journey within an organisation from hiring to retirement. hSenidBiz, which owns PeoplesHR, has deployed its software to help digitise over 1,600 HR departments across 40 countries in Middle East and Africa, South Asia and Southeast Asia.