Avalara's (AVLR) expanding TAM (total addressable market) will continue to drive near term momentum. The current valuation has priced in near term growth, regardless, I see a case for the valuation to expand given Avalara's strength in the tax space.
Demand (Rating: Bullish)
Source: Avalara IPO Prospectus
Avalara delivered strong results last quarter. Revenue grew 41% y/y. Subscription revenue represented 93% of overall revenue and it grew 43% y/y. Net retention rate was 113%. Management is guiding towards long term growth of 20% -25%.
Another key area of international opportunity is cross-border commerce.