AVLR

Avalara Inc

TMT


Presented:06/24/2019
Price:$70.44
Cap:$5.22B
Current Price:$93.48
Cap:$8.28B

Presented

Date06/24/2019
Price$70.44
Market Cap$5.22B
Ent Value$3.67B
P/E RatioN/A
Book Value$2.42
Div Yield0%
Shares O/S74.04M
Ave Daily Vol1,010,254
Short Int5.44%

Current

Price$93.48
Market Cap$8.28B
Avalara, Inc. provides cloud-based software services. It offers Avalara returns excise pro simplifies fuel tax compliance, enabling small and medium sized suppliers, distributors and terminal operators to reduce filing time and costs; Avalara avatax, the sales tax decision automation, instantaneously and accurately calculates tax; Avalara certcapture creates, validates and stores sales tax exemption certificates and reseller certificates in the cloud, limiting audit exposure; Avalara government automates end-to-end motor fuels tax filing processes for state tax authorities, growing tax revenue and eliminating labor-intensive activities; and Avalara mylodge tax is a automated solution for vacation rental homeowners seeking tax compliance for their vacation home rentals. The company was founded by Rory Rawlings, Scott McFarlane and Jared R. Vogt in 2004 and is headquartered in Seattle, WA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Avalara Inc (AVLR), Intuit Inc (INTU), Wayfair Inc (W)

Highlights

The presenter is long shares of Avalara Inc (AVLR), a subscription-based sales tax determination software company. AVLR plugs into a company’s ERP system, e-commerce platform, or POS system and shows how much sales tax the company must collect; this is more complicated than it seems because the software manages 12,000 jurisdictions with varying tax rates and laws, only further complicated by the fact that ~25% of these jurisdictions make changes each year. The presenter views the complex tax dynamics as a significant barrier to entry and notes that AVLR is the best player in the market due to its 700 pre-built plugins and strong relationships with other systems and integrators. Over the next year, he expects the company’s strong performance to continue based on secular and legislative tailwinds, improved operations, and new business initiatives. Although share prices are up more than 100% YTD, the presenter expects an additional 50% share price increase over the next 12 months for a price target of $105.

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Idea Discussion

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