Seattle-based Avalara receives a large cash injection as her business continues to benefit from the e-commerce boom and growing regulatory obligations.
Avalara said last week it added $ 959.9 million to its cash balance after issuing short-term debt in the form of convertible senior notes, according to a filing.
The money will be used to fuel the company’s compliance automation software that helps more than 30,000 businesses in 95 countries manage their sales and other types of taxes. Customers include companies such as Zillow, Pinterest, Converse, Roku, Thule, and others.
The increase in online shopping spurred by the pandemic and new tax rules, as well as the continued adoption of cloud services, have helped provide favorable winds for Avalara’s business. Its stock has more than tripled since it debuted on the public market in 2018, and has grown by more than 30% since May. The company’s market capitalization now stands at over $ 14 billion.
Avalara reported second quarter 2021 revenue of $ 169.1 million, up 45% year-over-year, its highest growth rate since the 2018 IPO .
When calling the results with analysts, Avalara CEO Scott McFarlane called it a “gold medal quarter.” He said the company’s vision is to “be a part of every transaction in the world”.
To do this, Avalara invests heavily in new technologies and new products, with around 25% of its employees working in R&D. The company employs more than 3,330 people worldwide.
“We believe we are ahead of the competition and driving the future of global compliance,” said McFarlane.
Founded in 2004, Avalara has also embarked on a wave of acquisitions in recent times, bringing together companies such as DAVO Technologies, Business Licenses, Transaction Tax Resources, INPOSIA Solutions and Impendulo Limited.
For the full year 2021, Avalara expects revenue of between $ 672 million and $ 676 million, compared to $ 500.6 million in 2020, and a non-GAAP operating loss between 10 and 14 million dollars.