hSenidBiz surpasses US $ 4mn ARR

• Records solid recurring revenue growth

hSenid Business Solutions PLC (hSenidBiz) has announced its financial results for the third quarter of FY2025, achieving a key milestone of US $ 4.0 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, the 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 percent growth in USD constant currency terms. However, in LKR terms, revenue declined by 5 percent year-over-year, primarily due to the continued appreciation of the LKR against the USD. Despite this, the company’s focus on strengthening recurring revenue remained evident, with recurring revenue accounting for 67 percent of total revenue.
The PeoplesHR Cloud business continued to drive top line performance, delivering a year-over-year growth of 10 percent. Subscription revenues within this segment comprised 84 percent of PeoplesHR Cloud’s total, marking a solid year-over-year growth of 20 percent. 

New deal closures for the quarter amounted to US $ 255,968, with 99 percent 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 percent to -8 percent 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.