The deal was backed by tier one underwriters, including Goldman Sachs, JP Morgan, and BofA Merrill Lynch. Also working it its favor was the smaller float which won't weigh down the stock once it opens for trading, and, the solid double-digit revenue growth.
Avalara is a provider of cloud-based software that helps companies deal with complex tax reporting and compliance issues. AVLR's platform helps companies navigate a complex web of tax laws in various jurisdictions in order for these companies to collect accurate sales taxes and other taxes from their customers.
Constantly shifting taxation and reporting obligations from local, regional, state, and national taxing authorities has created a complex and onerous compliance burden for businesses of all sizes. AVLR provides a suite of cloud-based software that helps improve accuracy and efficiency by automating the processes of determining taxability, identifying applicable tax rates, determining and collecting taxes, preparing and filing returns, remitting taxes, maintaining tax records, and managing compliance documents.
The Avalara Compliance Cloud aims to integrate seamlessly within its customers' business applications and is easy to administer and maintain. As transactions are executed in customers' business applications, the Avalara Compliance Cloud performs a series of operations to deliver tax compliance functionality in real time.
While businesses ranging from small businesses to Fortune 100 companies, use Avalara's platform, its primary target market is mid-market customers, with 20 to 500 employees. Avalara believes that the total addressable market for transaction tax compliance is large and under-penetrated. Europe and other jurisdictions throughout the world represent a significant additional addressable market.
Turning to the financials, the company is not yet profitable but is growing the top-line quickly. Revenue in 2017 grew 27% to $213.2 mln. For 1Q18, revenue grew 25% year/year to $61.4 mln.