First, the problem we can solve Maintaining the correctness, completeness, and consistency of the same employee data across disconnected systems—really, across separate databases—is the reason it’s a lot of work for companies to have many different business systems in the 昀椀rst place. This problem is most visible when you hire a new employee, because you need to set them up in every system, all at once. But whenever something changes about an employee, many (and sometimes all) of a company’s systems need to be updated. Because they don’t point to any central authority, they each need to be updated separately and by hand. This is the underlying cause of a lot of the irreducible administrative work required to run a business. The solution is a single place where people can make changes to information about employees, which then propagate to all the company’s other business systems. That’s essentially what Rippling is and what we do. The administrative burden that Rippling solves is signi昀椀cant. The proof is that when businesses use Rippling, they need half the headcount in HR, IT, and Finance roles compared to what’s required if they use one of our competitors. Rippling hired an independent research 昀椀rm to compare businesses that used Rippling and businesses that used other systems using LinkedIn data to measure the number of people in G&A functions at these companies.
Investor Memo 2024 Page 2 Page 4