Lattice
Business Model Analysis
How Lattice Makes Money
Annual Revenue: $127.1M (unaudited)
Lattice generates revenue primarily through HR Tech, with roughly $127.1M (unaudited) in annual revenue.
Core Growth Engine: Having built its base in technology companies and the mid-market, Lattice is moving into large enterprises and adding AI. It is building the compliance features that Fortune 500 clients require, to win them from older HR...
Revenue Model & Pricing
Lattice sells software by subscription and charges companies a monthly fee per employee. The platform covers four areas. Performance management is the core, with 360-degree reviews and 1-on-1 meeting tracking. Goals (OKRs) align individual goals with company objectives. Engagement runs anonymous pulse surveys on morale. Compensation helps HR calculate and distribute bonuses and equity grants.
Core Revenue Streams
Performance management
Not formally reportedThe core product: 360-degree reviews and 1-on-1 meeting tracking, charged monthly per employee.
Goals (OKRs)
Not formally reportedAligns individual goals with company objectives.
Engagement
Not formally reportedAnonymous pulse surveys on employee morale.
Compensation
Not formally reportedHelps HR calculate and distribute bonuses and equity grants. Lattice is private and does not publish revenue.
Growth Strategy
Having built its base in technology companies and the mid-market, Lattice is moving into large enterprises and adding AI. It is building the compliance features that Fortune 500 clients require, to win them from older HR vendors. It is also adding AI features that draft performance review summaries from a year of messages and emails, to cut the time managers spend on reviews.
How Lattice Makes Money: FAQ
How does Lattice generate recurring revenue from enterprise customers?
Lattice operates a B2B SaaS (Software-as-a-Service) subscription model, charging organizations on a per-employee, per-month (PEPM) basis with annual or multi-year contracts, allowing clients to purchase individual modules (such as Performance or Engagement) or the full-stack people suite.
What is the strategic value of Lattice expanding into the core HRIS market?
By launching Lattice HRIS, the company expanded beyond performance management into core HR recordkeeping (onboarding, time-off tracking, org charts, and payroll integration), increasing average revenue per account (ARPU) and increasing platform customer retention.
How does Lattice monetize compensation benchmarking and salary planning?
Through Lattice Compensation, organizations purchase automated merit cycle software that connects real-time performance ratings with salary bands, equity awards, and market compensation data, helping People teams eliminate spreadsheet errors and enforce pay equity.
What is Lattice's go-to-market and sales distribution strategy?
Lattice uses a hybrid go-to-market strategy: combining product-led growth (inbound demand driven by HR content, templates, and free benchmarking tools) with an outbound enterprise sales force targeting mid-market and enterprise companies with 500 to nearly 5,000 employees.
How does Lattice integrate with workplace communication tools like Slack and Microsoft Teams?
Lattice deeply embeds its workflows into Slack and Microsoft Teams, allowing employees to share public praise ('Praise Wall'), submit weekly 1-on-1 agendas, log goal updates, and complete micro-feedback without leaving their daily chat apps.
What is Lattice's customer retention and net revenue expansion profile?
Lattice achieves strong net revenue retention (NRR) driven by organic headcount growth at client companies (as clients hire more workers, PEPM billing expands automatically) and cross-selling additional modules like Engagement, Grow, and HRIS.
How does Lattice partner with payroll and benefits providers?
Lattice maintains open API integrations with leading payroll and benefits platforms (such as Gusto, Rippling, ADP, Deel, and Workday), synchronizing employee demographic changes, department rosters, and new hire onboarding in real time.
What role do analytics and executive dashboards play in the Lattice platform?
Lattice Analytics provides executive leaders and CPOs with real-time dashboards on turnover risks, gender and racial pay parity, eNPS sentiment trends across departments, and goal completion rates, enabling data-backed workforce planning.
How does Lattice make money?
Lattice operates a classic, highly lucrative B2B SaaS (Software-as-a-Service) model. They charge companies a monthly subscription fee based strictly on the number of employees. They make massive money through highly aggressive "upselling": a company might start by buying just the Performance Review module, but Lattice will aggressively sell them add-ons for Compensation Planning, Career Growth tracking, and Employee Engagement surveys.
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