Subscription and returns revenue reached $59.7 million, a 24-percent rise from $48.3 million in last year’s corresponding period. Professional services and other revenue was $4.0 million, up 56 percent from $2.6 million a year earlier. In the first earnings webcast as a public company, CEO Scott McFarlane recently noted, “We continued to expand our customer base in the midmarket which is the primary driver of our revenue growth.” However, he noted that the company is operating “opportunistically in the enterprise market.” McFarlane said while Avalara is “winning better than our fair share of deals in that market place” he is not interested in moving into the enterprise space because of the expense and effort needed. “I have never really wanted to step into the enterprise world on a full-on basis,” he said. Additionally, he said although the overseas business is a small part of sales “Our international sales are growing faster than our established business areas.” McFarlane says Avalara will invest in growth internationally.
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AVALARA WIDENS LOSS Featured
Avalara lost $17.8 million for the second quarter ended June 30, 39 percent more than the $15.4 million in red ink prior year. Revenue for the most recently ended quarter was $63.7 million, rising 25 percent from $50.9 million a year ago.
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