Avalara is looking to raise more cash from the public market. The Seattle sales tax automation software company filed paperwork with the SEC on Tuesday that revealed its proposal to offer an additional 3 million shares of common stock on the New York Stock Exchange. It expects net proceeds to reach $222.3 million if underwriters exercise their option to purchase additional shares.
The company said the primary reason for the offering is to “increase our public float.” It expects to use the cash to grow headcount and invest in sales, marketing, product development, and other general matters. The company may also use the funding to acquire or invest in other businesses.
Avalara had 70 million shares of common stock outstanding, as of March 31. The company went public almost exactly one year ago. Shares dipped in the months after the IPO but have bounced back in a big way this year. Avalara’s market value surpassed $4 billion in April as its stock price has doubled in 2019 alone.
Avalara posted $85 million in revenue for Q1 of this year, up 38 percent year-over-year. Revenue reached $254 million in 2018, up 25 percent year-over-year, while losses grew to $75.5 million. The company has $340 million in cash or cash equivalents.
Avalara added more than 600 core customers in the first quarter and now has nearly 10,000. Avalara acquired its 11th company in February and added three new executives. It has grown to more than 1,800 employees across 12 offices around the world.
Founded in 2004, Avalara makes software to help companies better adhere to complex tax regulations. It competes against companies such as CCH Inc., Sovos, Vertex and Onesource Indirect Tax, which is a unit of Thomson Reuters.
Shares are down 2 percent today, trading at around $64.