Even though the stock has traded down nearly 20% since the company reported earnings, Avalara (AVLR) continues to exceed quarterly expectations. The company also provided FY20 revenue guidance that was better than expectations, though margins appear to remain under pressure for another year. Valuation also remains a bit high at 11x FY20 revenue, a difficult pill to swallow for investors who appear to be selling a lot lately.
The company reported strong Q4 with revenue growing 40% during the quarter to $107.6 million, well above expectations for $100 million. Operating margins, while still