A lot has happened since Zenefits told investors last yearthat its already lofty projection for annual recurring revenuewould more than triple by the end of 2016.

Related: The Zenefits saga continues

The HR software maker saw its founding chief executive officerleave under pressure from the board, paid about $1 million in finesto state regulators for selling insurance without the properlicenses and renegotiated a lower valuation with investors to avoida potential lawsuit.

The company's optimistic projection of $450 million for 2016hasn't come to fruition. Instead, Zenefits' annual recurringrevenue is about the same as it was last year, hovering above $60million, according to people familiar with the matter, who askednot to be identified because the financials are private.

Growth started slowing last year when CEO Parker Conrad wasstill in charge and continued to slide throughout the corporatecrises and management transition.

Related: ADP targets former Zenefits workers

David Sacks, who replaced Conrad in February, declined tocomment on the revenue figure. "The customer base has stuck with usthrough the issues that have been resolved now; the customer basehas been loyal," he said.

Early on, Zenefits sold itself to Silicon Valley venturecapitalists with promises of breakneck growth. Just two yearsafter starting up, Zenefits raised $500 million in aninvestment round valuing the business at $4.5 billion. But thatvaluation has since been cut to $2 billion as Sacks tries to resetexpectations.

Jessica Hoffman, a spokeswoman for Zenefits, wrote in an e-mail:"The company under prior management was overly optimistic in itsgrowth assumptions. We have taken a more conservative approachgoing forward."

Sacks plans to introduce his vision for Zenefits at acorporate event on Tuesday with a product branded Z2. The newversion of its HR software will feed information directly intopopular small business software, such as Intuit's QuickBooks,Microsoft's Office 365, Slack's messaging app, expense reportservice Expensify and employee stock management software eShares.

The goal is to turn Zenefits into the central informationrepository for any small or medium-size business. "We reallyredesigned Zenefits so that the whole thing works like an appstore," Sacks said.

Related: Zenefits agrees to pay $62,500 fine to the state ofTennessee

Whether Sack's tenure so far has been a success or failure is amatter of perspective. On the one hand, he seems to haveplugged a sinking ship. He's knocking out settlements with stateregulators, one by one.

He's mitigated the risk of investors suing the company byadjusting the ownership structure and valuation of the company.He's focused the company's attention on small and medium sizebusinesses, rather than on larger ones. That's helped Zenefitskeep its annual recurring revenue steady, even as the companyhas said it lost its largest customers.

On the other hand, Zenefits is a shadow of its former self. Inpart to reach aggressive targets, some sales staff violated stateregulations by using a web browser plugin created by Conrad toskirt insurance broker training requirements and sold healthplans to customers in states where they weren't registered.

Zenefits is now facing fierce competition from ADP, Gusto andothers. Sacks, a former PayPal and Yammer executive who joinedZenefits as chief operating officer in 2014, hasreduced headcount to about 950 from 1,400. That's helpedZenefits cut cost but may also reflect diminishedambitions.

Meanwhile, Zenefits backers would have needed a road map tonavigate the company's financial estimates last year. In early2015, it told investors that it expected to reach $127 million inannual recurring revenue by the end of that year. In May, thecompany lowered the projection, telling reporters that it wastargeting $100 million. The company's actual annual recurringrevenue by the end of last year topped $60 million.

Annual recurring revenue is a fairly common financial metric forsubscription software businesses like Zenefits. It reflects thevalue of the company's current customers over 12 months. The oddsthat Zenefits reaches $1 billion in annual recurring revenue by theend of 2017, which is what the company forecast early last year,are basically zero. Zenefits declined to provide anupdated projection for 2017.

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.