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M&A SPURS AVALARA IN 2021 Featured

Avalara had revenue growth of 39.4 percent for the year end December 31 with acquisitions providing 11 points of that growth. The sales tax software company reported revenue of slightly less than $699 million, compared to $500.6 million for 2020.

Avalara continued to pour the money back into the market with operating expenses rising to $28.1 million last year, up 42.8 percent from $19.7 million the year before. That produced a loss of slightly more than $35 million, more than two and a half times a loss of $11 million for 2020. In this week’s earnings webcast, CEO Scott McFarlane said the company continues to expand upmarket and down market from its core SMB market,  but did not discuss specific moves in those “areas. He also noted plans for expanding internationally in existing and new markets. We've really had a good go of it in the U.K. and some of the other countries, but we can expand that even more to more of the countries in EMEA. And then we have a big presence in India,” he said. McFarlane has called Brazil a great place for a beachhead in Latin America. Avalara is exploring putting business development and product management “in some of the other countries in Asia and LATAM.” Avalara also continued its strategy of increasing its integration with other software companies and platforms.  McFarlane said there are now 1,200, including those signed, but not yet live. McFarlane said the company will continue to stress its relationships with developers and will be holding its second annual virtual developer conference called Avalara Next in March.

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