Global payroll and HR platform Deel said on the 5th that as of the first half of this year, its annual recurring revenue (ARR) surpassed $1.5 billion (about 2.1 trillion won). ARR is an indicator that converts predictable recurring revenue based on subscribers and contracts into a yearly figure.
After reaching $1 billion in ARR in Jun. last year, it recorded about 50% growth in one year. The number of client companies also increased to about 40,000. In Korea, Toss, Musinsa, and the LG AI Research Institute are using Deel.
Riding a streak of profitability, the company also executed its 15th merger and acquisition (M&A). The acquisition target is Clarity, an AI cybersecurity company specializing in identity verification, deepfake detection, and fraud prevention technologies. Through this acquisition, Deel plans to strengthen its security capabilities across the entire employee lifecycle, from pre-hire background checks to the distribution of work devices after onboarding and management of system access permissions.
Alex Bouaziz, Deel co-founder and chief executive officer (CEO), said, "As AI advances, the nature of security threats is also changing," and added, "With this acquisition, customers will be able to safely hire and manage global talent while responding to increasingly sophisticated threats."