Shares in Avalara are on the rise as the sales tax automation company posted rapid revenue growth and narrowing losses, beating Wall Street expectations.
Revenue: Avalara brought in $91.3 million in revenue in the second quarter, a spike of 43 percent over the prior year and well ahead of analyst expectations of $84.1 million.
Profits: Net losses of $2 million, or $0.03 per share, came in better than Wall Street’s expectations of losses of $0.11 per share.
Looking ahead: In the third quarter, Avalara expects revenue between $92.5 million and $93.5 million, ahead of analyst expectations of $86.4 million.
“We posted another strong quarter, highlighted by our second quarter revenue growing 43% year over year,” Avalara CEO Scott McFarlane said in a statement. “Avalara also hosted another highly-successful CRUSH conference, which saw record attendance from customers and partners. We continue to 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. We believe our broad tax content, robust platform, partner channel, and pre-built integrations position Avalara as a clear choice to lead this automation cycle.”
Avalara stock is up 7.6 percent in after-hours trading. Shares in the company are up a whopping 149 percent so far this year.
The company ended the quarter with 10,430 core customers, up from 9,700 at the end of the last quarter.