Avalara Reports Q4: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2022/02/09 5:45 am EST
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Tax compliance software maker Avalara (NYSE:AVLR) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter Avalara reported revenues of $181.1 million, up 41.6% year on year, beating analyst revenue expectations by 6.35%. It was a solid quarter for the company, with a full year guidance beating analysts' expectations and an exceptional revenue growth.

Is Avalara buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Avalara's revenue to grow 25.6% year on year to $181.8 million, slowing down from the 34.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Loss is expected to come in at -$0.07 per share.

Avalara Total Revenue

The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.23%.

Looking at Avalara's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Paycor (NASDAQ:PYCR) delivered top-line growth of 20% year on year, beating analyst estimates by 3.56% and Paylocity (NASDAQ:PCTY) reported revenues up 33.9% year on year, exceeding estimates by 4.11%. Paycor traded up 3.9% on results, Paylocity was up 10.2%. Read our full analysis of Paycor's results here and Paylocity's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.48% over the last month. Avalara is down 9.39% during the same time, and is heading into the earnings with with analyst price target of $192.9, compared to share price of $107.96.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.