Seattle-based Avalara is receiving a substantial cash injection as its business continues to benefit from the e-commerce boom and increasing regulatory obligations.
According to a document, Avalara said last week that after issuing short-term debt in the form of convertible senior notes, its cash balance increased by US$959.9 million.
The funds will be used to promote the company’s compliance automation software, which helps more than 30,000 companies in 95 countries manage their sales and other types of transaction-related taxes.
The online shopping driven by the pandemic and the rise of new tax rules, as well as the continued adoption of cloud services, provide favorable conditions for Avalara’s business. Since its listing in 2018, its stock price has risen more than 3 times, and has risen by more than 30% since May. The company’s market value now exceeds $14 billion.
Avalara Report Revenue in the second quarter of 2021 was US$169.1 million, a year-on-year increase of 45%, the highest growth rate since the 2018 IPO.
During the earnings call with analysts, McFarlane called it a “gold quarter.” He said the company’s vision is to “be part of every transaction in the world.”
To this end, Avalara is investing heavily in new technologies and products, and about 25% of its employees are engaged in research and development.
“We believe that we are surpassing our competitors and driving the future of global compliance,” McFarlane said.
Avalara has also recently carried out an acquisition spree, acquiring companies including DAVO Technologies, Business Licenses, Transaction Tax Resources, INPOSIA Solutions and Impendulo Limited.
Avalara expects full-year revenue in 2021 to be between US$672 million and US$676 million-higher than the US$506 million in 2020-and non-GAAP operating losses between US$10 and 14 million.