But it intends to keep spending, expanding both sales and marketing this year. “I think one of the things that you're going to see in the second half of this year and in the next year we're going to try to dial up some of the noise on our sales and marketing,” CEO Scott McFarlane said during this week’s earnings webcast. McFarlane said Avalara had probably “turned the dial even a little bit too far on the efficiency around sales and marketing” and will be adding sales people this year. That especially will be true as the sales tax company moves into the enterprise market. The company lost $27.7 million for the most recent ended quarter, up from slightly more than a $10-million loss last year. Revenue was slightly more than $169 million, compared to $116.5 million in last year’s corresponding quarter. The company ate up the gain with a 58.7-percent rise in operating expenses. McFarlane said Avalara will introduced what he called “more than a dozen new and significant products and major releases”. He listed these as including documents central, transfer pricing, a software version of Cloud Connect, and a new content subscription service.
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AVALARA TO EXPAND SALES/MARKETING Featured
Avalara finished a typical quarter in some ways on June 30—it had a 45-percent increase in revenue, a record percentage as a public company. However it also cranked up its loss for the second quarter by 177 percent.
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