Shares of Avalara were up more than 5 percent in after-hours trading after the Seattle-based tax automation company beat estimates for its third quarter earnings report.
Avalara posted $98.6 million in revenue, up 41 percent year over year, with non-GAAP earnings per share at -$0.01. Analysts expected revenue of $93.1 million and EPS of -$0.09.
“We continue to believe that the automation of transaction tax in our digital economy is inevitable. As technology becomes the backend to every business, government, and financial transaction, Avalara’s compliance cloud platform is designed to scale to support and enable those changes,” Avalara CEO Scott McFarlane said in a statement.
The company ended the quarter with 11,240 core customers, up from 10,430 at the end of the last quarter. Companies such as Box, Pinterest, Marketo, Adidas, Fandango, and The New York Times use Avalara’s services.
In the fourth quarter, Avalara expects revenue between $99.5 million and $100.5 million.
Avalara shares have more than doubled this year after dipping following the company’s IPO in June 2018.
Avalara is riding momentum off the Supreme Court’s Wayfair decision last year allowing states to collect sales tax from online sellers even if those companies don’t have a physical presence in the state. The 15-year-old company rolled out 22 new integrations with various software applications in September and has been expanding into different types of taxes while growing abroad.