Avalara

0.25 (0.35%)

NYSE:AVLR | Last traded on 11-15-2019 4:04 PM

Market Reaction

Offer Price

$24.00

Today Open Price

$72.31

Change Since IPO

Market Cap

$5.5B

Day High

$74.10

Day Low

$71.44

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Featured Analysis

Wow. A company that is growing about 30% a year and losing money with a $1.5B valuation, which means it is trading at around 24x trailing sales (I should have stayed in tech- really). To put this in perspective, when Facebook went out, it was at 24X sales, but it was making good profits. I don't think the financials are terrible because at least margins are improving. I do think that these companies are HIGHLY market dependent and will roll down quickly if the market corrects.

Company Data

Location

Seattle, WA

Valuation

$1.5B

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Founded

2004

Total Shares Offered

64,981,383

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Employees

1,495

IPO Date

2018-06-15

Background Information

Avalara, Inc. provides a cloud-based service to uphold tax compliance. These include offering compliance solutions to simplify the transaction tax compliance and producing records of tax determinations, leading to a decrease in the number of erroneous mistakes, audits, and compliance costs. They also provide solutions for calculating sales tax in the United States and tax return processing.

Financial Analysis

Years 2016 2017
Revenue growth 35.77% 27.54%
Net profit margin -34.73%-30.04%
Valuation -- $1.56B
Revenue multiple -- 7.3x
Profit multiple ---24x

Financial Information

Income Statement ($M) 20152016 2017
Revenue123167213
Cost of goods sold414958
Gross profit82119155
Total operating expense162173219
EBIT(80)(54)(63)
Pretax profit(81)(57)(64)
Net income(78)(58)(64)
Balance Sheet ($M) 20152016 2017
Total current assets6261
Cash and cash equivalents2014
Total assets183179
Total current liabilities113137
Total liabilities155201
Total shareholder equity343394
Total liabilities and equity183179
Cash Flow Statement ($M) 201520162017
Net cash from operating activities(47) (22)(4)
Net cash from investing activities(54) (30)(16)
Net cash from financing activities22 6114
Net increase in cash and cash equivalents(78) 10(6)