Shares of Avalara were up as much as 10 percent in after-hours trading Tuesday after the Seattle-based sales tax automation company beat estimates for its first quarter earnings.
Avalara posted $85 million in revenue for Q1, up 38 percent year-over-year, and a non-GAAP net loss of $0.01 per share. Analysts expected revenue of $79 million and a loss of $0.16.
“We believe that the automation of transaction tax compliance will be adopted over an extended period, as customers upgrade systems, expand their businesses both domestically and internationally, and respond to changing government rules, such as the recent legislative responses to the Supreme Court’s Wayfair decision,” Avalara CEO Scott MacFarlane said in a statement.
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.
Avalara’s market value surpassed $4 billion late last month as its stock price has nearly doubled in 2019 alone. The company went public this past June. Shares dipped in the months after the IPO but have bounced back in a big way this year.
