Despite entering Q2 earnings with a high valuation, Avalara (AVLR) exceeded expectations for the quarter and proceeded to pop over 10% in the following days. However, the stock has traded down over the past few weeks and is now up only ~5% since reporting earnings. While valuation does remain at a premium, the company continues to prove that investors are willing to keep their money in a fast growth name with long-term potential.
Q2 revenue was well above expectations, growing 43% yoy compared to consensus expectations for ~33% growth. The company added an