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hSenidiz Surpasses $4 Mn ARR with 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 USD 4.0 million in exit-Annualized 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 LKR 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 USD 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 maximize the deal pipeline, expecting improved results in the coming quarters.
Commenting on the company’s progress, CEO Sampath Jayasundara stated, “Our strategic focus remains centered 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 capitalize on emerging opportunities and sustain our growth momentum.”
Normalized 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 LKR 99.7 million, including a forex loss of LKR 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, organized 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 1,675 HR departments across 40 countries in regions including South Asia, Southeast Asia, Middle East and Africa, digitizing the entire employee journey within organizations from hiring to retirement.
