Investment Thesis
Avalara (AVLR) has an attractive business model to ease customer pains by solve tax and compliance issues.
However, Avalara's guidance points towards decelerating revenue growth rates, as well as, being guided to remain unprofitable.
What's more, for now, Avalara continues to trade at a very high multiple of 21x forward revenues.
On balance, I fail to see much room for positive surprises here for this multiple to further expand in the face of decelerating revenue growth rates and for new shareholders to be positively rewarded by investing at close to $11