hSenidBiz surpasses $ 4 m ARR with solid recurring revenue growth

Thursday, 13 February 2025 04:55 - - {{hitsCtrl.values.hits}}

CEO Sampath Jayasundara (left) and Founder and Chairman Dinesh Saparamadu

hSenid Business Solutions PLC (hSenidBiz) has announced its financial results for the third quarter of FY2025, achieving a key milestone of $ 4 million in exit-Annualised Recurring Revenue (ARR), marking a significant step in hSenidBiz’s journey as a leading HR technology provider in Emerging Markets across South Asia, Southeast Asia, Middle East and Africa. The PeoplesHR Cloud business continued to be the focus and primary engine of recurring revenue expansion.

Commenting on this achievement, Founder and Chairman Dinesh Saparamadu stated, “Our focus on expanding recurring revenue continues to strengthen our long-term value creation for all stakeholders. This milestone is a testament to our efforts in simplifying complex HR processes globally and helping organisations realise the true potential of its people.”

The company reported total revenue of Rs. 431.3 million for the quarter, reflecting a 4% growth in US dollar constant currency terms. However, in rupee terms, revenue declined by 5% year-over-year, primarily due to the continued appreciation of the rupee against the US dollar. Despite this, the company’s focus on strengthening recurring revenue remained evident, with recurring revenue accounting for 67% of total revenue.

The PeoplesHR Cloud business continued to drive top-line performance, delivering a year-over-year growth of 10%. Subscription revenues within this segment comprised 84% of PeoplesHR Cloud’s total, marking a solid year-over-year growth of 20%.

New deal closures for the quarter amounted to $ 255,968, with 99% attributed to the PeoplesHR Cloud business. As new deal volumes remain below expectations, hSenidBiz has intensified efforts over the past two quarters to enhance demand generation and maximise the deal pipeline, expecting improved results in the coming quarters.

Commenting on the company’s progress, CEO Sampath Jayasundara stated, “Our strategic focus remains centred on strengthening our recurring revenue streams, particularly through PeoplesHR Cloud. As we deepen our presence across our focus markets, we remain confident in our ability to capitalise on emerging opportunities and sustain our growth momentum.”

Normalised EBITDA margins showed a notable improvement, rising from -17% to -8 % in the quarter, reflecting the positive impact of ongoing cost control measures. The Company recorded a net loss of Rs. 99.7 million, including a forex loss of Rs. 13 million, though the improving margin trajectory highlights progress toward greater financial stability.

Further reinforcing its industry leadership, hSenidBiz was honoured with the “Gold Award in the Large Category of the ICT, BPO & Related Services Sector” at the 32nd Annual Export Awards 2024, organised by the National Chamber of Exporters of Sri Lanka. This marks the fifth consecutive year the Company has received this recognition, demonstrating its commitment to driving global HR technology innovation.

PeoplesHR, the company’s flagship human capital management software solution, now serves over 1,600 HR departments across 40 countries in regions including South Asia, Southeast Asia, Middle East and Africa, digitising the entire employee journey within organisations from hiring to retirement.

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