hSenid Biz’s PeoplesHR Cloud drives 1Q25 growth

Sampath Jayasundara - CEO	Dinesh Saparamadu  - Chairman

hSenid Business Solutions (hBS) for the quarter ending 30 June reported a total revenue of Rs. 466.0 million, and a net loss of Rs. 60.4 million,  an improvement when compared to both 1Q24 and 4Q24.

The quarter saw the normalided EBIT and EBITDA margins continuing to decline to -9.6 percent from -7.8 percent in 4Q24 due to the higher partner commissions on partner sourced deals. Despite this, the Free Cash Flow margin improved to -5 percent from -7 percent on a quarter-on-quarter basis, showing significant improvement compared to the -28 percent recorded for FY24.

The PeoplesHR Cloud business continued to be the primary driver of growth showcasing a year-over-year growth of 27.9 percent. Recurring subscription revenues accounted for 84.9 percent of the PeoplesHR Cloud Business, recording a year-over-year growth of 44.2 percent.

The company surpassed an exit Annualized Recurring Revenue (ARR) of US$ 3.5 million during the quarter, with total recurring revenues accounting for 57.7 percent of total revenue. New deal closures for the quarter amounted to US$ 357,482  reflecting a 44 percent year-over-year growth, with 87.5 percent of these new deals being PeoplesHR Cloud deals, and 46.5 percent sourced through the company’s channel partner network.

According to hSenid CEO Sampath Jayasundara, the company decided to utilise the remaining Rs. 350 million of IPO funds, initially allocated for mergers and acquisitions, to be redirected to finance organic market development activities upon approval at the Annual General Meeting. 

Additionally, the Board of Directors approved a distribution of approximately Rs. 346.0 million to shareholders, offering them the choice between receiving the dividend in either cash or scrip form.