Avalara beat analyst expectations for its third fiscal quarter and mentioned it acquired the property of Enterprise Licenses.
The Seattle tax automation firm reported $127.9 million in income, up 30% year-over-year, and non-GAAP earnings per share of $zero.02, up by 4 cents. Wall Avenue anticipated income of $116 million and earnings per share of -$zero.09.
“We continue to see a confluence of macro trends that are tailwinds for our business, from the accelerating growth of ecommerce to broader adoption of cloud-based solutions and a growing emphasis on efficiency to the increasing need for regulatory compliance enforcement,” Avalara CEO Scott McFarlane mentioned in a press release. “We believe that global demand for compliance automation is inevitable, and we are well positioned to capture the large opportunity in front of us.”
Avalara has 14,180 core prospects, up from 13,560 prospects within the second quarter and up 24% year-over-year.
The corporate mentioned it paid $97 million in money and inventory to purchase the operational property of Business Licenses, a Monsey, N.Y.-based firm that helps prospects with enterprise license compliance. Avalara beforehand labored with the corporate to launch Avalara Licensing in 2018. The deal helps Avalara broaden its choices “throughout the entire compliance journey,” McFarlane mentioned.
“Business startup and growth begins with licensing and registration; it is the first step on a journey to achieve compliance,” he added.
Final month Avalara paid roughly $377 million in money to acquire Transaction Tax Resources (TTR), a McMinnville, Ore.-based supplier of assorted tax-related services and products.
Shares of Avalara had been up 6% in after-hours buying and selling. Avalara’s inventory value has greater than doubled since March. The corporate went public in June 2018.