Segment & Geographic Data
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Avalara's Business Segments
Avalara's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Segment Data As of FY
Reportable Segments
-
Largest Segment
-
Total Revenue
$ 209
Countrys Reported
1
Avalara does not report a distinct business-segment axis in its filings - its disaggregated revenue is disclosed by product and service category instead. See the Product & Service breakdown below.
Revenue Share by Country - FY
- US93.7%
Revenue by Geographic Country - FY
| Country | Revenue (Millions) | % of Total |
|---|---|---|
| US | $ 195 | 93.7% |
Revenue by Product & Service Category - FY
- Subscription and Circulation91%
- Subscription and Returns Tax Calculations51%
- Subscription and Returns Tax Returns and Compliance Management34.4%
- Professional Services9%
- Subscription and Returns Interest Income on Funds Held for Customers0.1%
Revenue by Product & Service Category - FY
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Subscription and Circulation | $ 190 | 91% |
| Subscription and Returns Tax Calculations | $ 106 | 51% |
| Subscription and Returns Tax Returns and Compliance Management | $ 72 | 34.4% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
Description of Avalara
Avalara is a market leader in tax compliance automation for companies of all sizes. Every firm, no matter how large or small, is subject to a dizzying and costly array of constantly altering transaction tax collection, reporting, and remittance duties imposed by a patchwork of local, regional, state, and national taxation agencies. This compliance burden has grown as omnichannel commerce and international trade have grown in popularity. Avalaras objective is to remove this burden, allowing businesses to focus on their core activities. We provide a premier array of cloud-based solutions to help businesses with transaction tax and related compliance obligations.
The Avalara Compliance Cloud is a multi-product platform that includes computation, returns, compliance document management, licensing and registration, fiscal representation, tax content, and insight solutions. The Avalara Compliance Cloud will be the premier, category-defining worldwide cloud compliance platform, according to our vision.
Generational developments in global economies and technology use boost Avalaras compliance automation business. Increases in digital commerce and the continued acceptance of cloud technology are behavior and productivity trends that we anticipate will continue indefinitely. Businesses throughout the world are searching for efficient, automated procedures to limit risk and support development, in addition to increasing regulatory change and government usage of technology for fiscal transparency and efficiency.
The Avalara Compliance Cloud is designed to be simple to operate and maintain while seamlessly integrating with our clients business applications. The Avalara Compliance Cloud executes a series of activities to provide tax compliance capabilities while transactions are completed in our clients business applications. Customers and partners use our pre-built integrations that connect to business applications used for accounting, enterprise resource planning ("ERP"), ecommerce, marketplaces, point of sale ("POS"), recurring billing, and customer relationship management ("CRM") systems, or develop API calls directly into their systems, to enable this functionality. These connections are intended to decrease the need for specific settings and continuous client oversight. Our cloud infrastructure guarantees that our tax content changes are implemented immediately.
Our products are used by businesses of all sizes and industries, ranging from tiny businesses to Fortune 100 corporations. While mid-market and smaller customers with 20 to 500 employees have historically been our primary target segment for marketing and selling our solutions, we are focused on expanding our customer reach globally through investments in product and go-to-market capabilities that address the enterprise and emerging small business market segments. We think that these areas provide significant long-term prospective growth prospects to supplement our big mid-market opportunity, which we feel is underserved. We have been introducing additional compliance capabilities in order to gain a greater proportion of these business areas. This includes calculating cross-border customs tariffs and import taxes, as well as consumer usage taxes levied by the government.
The Avalara Compliance Cloud is a multi-product platform that includes computation, returns, compliance document management, licensing and registration, fiscal representation, tax content, and insight solutions. The Avalara Compliance Cloud will be the premier, category-defining worldwide cloud compliance platform, according to our vision.
Generational developments in global economies and technology use boost Avalaras compliance automation business. Increases in digital commerce and the continued acceptance of cloud technology are behavior and productivity trends that we anticipate will continue indefinitely. Businesses throughout the world are searching for efficient, automated procedures to limit risk and support development, in addition to increasing regulatory change and government usage of technology for fiscal transparency and efficiency.
The Avalara Compliance Cloud is designed to be simple to operate and maintain while seamlessly integrating with our clients business applications. The Avalara Compliance Cloud executes a series of activities to provide tax compliance capabilities while transactions are completed in our clients business applications. Customers and partners use our pre-built integrations that connect to business applications used for accounting, enterprise resource planning ("ERP"), ecommerce, marketplaces, point of sale ("POS"), recurring billing, and customer relationship management ("CRM") systems, or develop API calls directly into their systems, to enable this functionality. These connections are intended to decrease the need for specific settings and continuous client oversight. Our cloud infrastructure guarantees that our tax content changes are implemented immediately.
Our products are used by businesses of all sizes and industries, ranging from tiny businesses to Fortune 100 corporations. While mid-market and smaller customers with 20 to 500 employees have historically been our primary target segment for marketing and selling our solutions, we are focused on expanding our customer reach globally through investments in product and go-to-market capabilities that address the enterprise and emerging small business market segments. We think that these areas provide significant long-term prospective growth prospects to supplement our big mid-market opportunity, which we feel is underserved. We have been introducing additional compliance capabilities in order to gain a greater proportion of these business areas. This includes calculating cross-border customs tariffs and import taxes, as well as consumer usage taxes levied by the government.
Avalara Inc. provides a comprehensive suite of products and services designed to assist businesses in overcoming the complexities of tax compliance across various jurisdictions. The company’s offerings can be broadly categorized into several segments: Calculations, Returns and Reporting, Compliance Document Management, Licensing and Registrations, and Fiscal Representation. Each segment is tailored to meet the unique needs of businesses operating in diverse industries and regulatory environments.
Calculations
Avalaras calculation products are at the core of its offerings, enabling businesses to accurately determine tax rates for transactions based on extensive data and sophisticated logic contained within Avalara’s robust tax content database. This includes:
- Industry-Specific Calculations: Avalara provides unique calculation products tailored for various sectors including:
- Fuel and Beverage Alcohol Excise Tax: Specialized calculations for businesses dealing with products that are heavily taxed, ensuring compliance with applicable regulations.
- Insurance Premium Tax: Assists insurance companies in calculating the necessary taxes on premiums.
- Lodging Tax: Calculation of applicable taxes for hospitality businesses, including hotels and short-term rentals.
- Communications Tax: Targeted products for companies in the telecommunications sector.
- Geographically Diverse Solutions: Avalara’s offerings extend to international markets with products for:
- Value Added Tax (VAT) and Goods and Services Tax (GST): Products designed for compliance with tax laws in numerous global jurisdictions.
- Customs Duties and Import Taxes: Solutions to support businesses with cross-border transactions.
- Deployment Models: Products can be delivered through:
- Cloud-Based Solutions: Most commonly used, providing flexibility and scalability.
- On-Premises Solutions: For customers with specific infrastructure preferences.
These calculation products are sold primarily as annual subscriptions, often bundled with other solutions like returns and compliance document management.
Returns and Reporting
Avalaras returns and reporting products automate the cumbersome tax return process, encompassing:
- Complete Automation: From data preparation to filing and remitting funds to tax authorities. This automation helps companies minimize manual errors and reduce the administrative burden.
- Deadline Management: These products track important filing dates and requirements for various jurisdictions, ensuring businesses remain compliant.
- Specialized Returns Products: Avalara offers specific solutions for different types of taxes including:
- Sales and Use Tax Returns
- VAT Returns
- Excise Tax Returns (for fuel and alcohol)
- Insurance Premium Returns
- Lodging Tax Returns
- Communications Tax Returns
- Remittance Services: Avalara can execute the remittance of tax collections to appropriate authorities, streamlining the process for businesses.
- Targeted Solutions for Variability: Avalara tailors its returns offerings to meet the unique needs of small businesses and accounting firms, recognizing that compliance requirements can differ significantly by business type and size.
- Global Expansion: The company is actively expanding its capabilities to support live reporting and e-invoicing requirements in regions including Europe, India, and Brazil.
The returns and reporting products can be purchased as standalone solutions or integrated with calculation products and are generally offered under an annual subscription model with a per-filing option available.
Compliance Document Management
Avalaras compliance document management products streamline the management of necessary documentation required for tax compliance, including:
- Automation of Document Handling: Creation, distribution, storage, and management of compliance documents, minimizing manual processes.
- Key Documents Handled:
- Tax Exemption Certificates
- W-8 Forms, W-9 Forms
- 1099 Forms for Contractors
- Power of Attorney Forms
- Identification Forms (e.g. Passports, Drivers Licenses)
- Audit Trail Establishment: These solutions help businesses reduce audit exposure by maintaining thorough and organized records of tax-exempt transactions and other relevant documents.
- Integrated and Standalone Options: Products can be bundled with calculation and returns solutions or purchased independently, with optional managed services for assistance in document collection and validation.
Licensing and Registrations
Avalara provides licensing and registration services that support businesses in navigating regulatory requirements:
- Business Licenses and Permits: Helps businesses obtain the necessary licenses and permits at the local, state, and federal levels.
- VAT Registration Services: For global businesses, Avalara assists in obtaining and maintaining VAT registrations, a vital step in ensuring compliance with local tax laws when conducting international transactions.
- Flexible Purchase Options: Licensing and registration services can be acquired either as standalone services or as an ongoing subscription for sustained management and updates.
Fiscal Representation
In an increasingly globalized economy, Avalara addresses the need for local representation through fiscal representation services. These services include:
- Local Representation: Acting as the contact point with tax authorities in jurisdictions where a business operates but does not have a physical presence.
- Subscription-Based Services: Avalara’s fiscal representation is available on a subscription basis, allowing businesses to fulfill local compliance requirements efficiently.
Conclusion
Overall, Avalara Inc. offers a diverse range of tax compliance solutions that cater to the unique needs of various industries and regions. Its comprehensive approach combines advanced technology with industry-specific expertise to provide businesses with the tools and support needed to navigate the complexities of tax compliance effectively. Through continuous product development and expansion into new regions and offerings, Avalara positions itself as a leader in the field of tax compliance automation and technology.
Calculations
Avalaras calculation products are at the core of its offerings, enabling businesses to accurately determine tax rates for transactions based on extensive data and sophisticated logic contained within Avalara’s robust tax content database. This includes:
- Industry-Specific Calculations: Avalara provides unique calculation products tailored for various sectors including:
- Fuel and Beverage Alcohol Excise Tax: Specialized calculations for businesses dealing with products that are heavily taxed, ensuring compliance with applicable regulations.
- Insurance Premium Tax: Assists insurance companies in calculating the necessary taxes on premiums.
- Lodging Tax: Calculation of applicable taxes for hospitality businesses, including hotels and short-term rentals.
- Communications Tax: Targeted products for companies in the telecommunications sector.
- Geographically Diverse Solutions: Avalara’s offerings extend to international markets with products for:
- Value Added Tax (VAT) and Goods and Services Tax (GST): Products designed for compliance with tax laws in numerous global jurisdictions.
- Customs Duties and Import Taxes: Solutions to support businesses with cross-border transactions.
- Deployment Models: Products can be delivered through:
- Cloud-Based Solutions: Most commonly used, providing flexibility and scalability.
- On-Premises Solutions: For customers with specific infrastructure preferences.
These calculation products are sold primarily as annual subscriptions, often bundled with other solutions like returns and compliance document management.
Returns and Reporting
Avalaras returns and reporting products automate the cumbersome tax return process, encompassing:
- Complete Automation: From data preparation to filing and remitting funds to tax authorities. This automation helps companies minimize manual errors and reduce the administrative burden.
- Deadline Management: These products track important filing dates and requirements for various jurisdictions, ensuring businesses remain compliant.
- Specialized Returns Products: Avalara offers specific solutions for different types of taxes including:
- Sales and Use Tax Returns
- VAT Returns
- Excise Tax Returns (for fuel and alcohol)
- Insurance Premium Returns
- Lodging Tax Returns
- Communications Tax Returns
- Remittance Services: Avalara can execute the remittance of tax collections to appropriate authorities, streamlining the process for businesses.
- Targeted Solutions for Variability: Avalara tailors its returns offerings to meet the unique needs of small businesses and accounting firms, recognizing that compliance requirements can differ significantly by business type and size.
- Global Expansion: The company is actively expanding its capabilities to support live reporting and e-invoicing requirements in regions including Europe, India, and Brazil.
The returns and reporting products can be purchased as standalone solutions or integrated with calculation products and are generally offered under an annual subscription model with a per-filing option available.
Compliance Document Management
Avalaras compliance document management products streamline the management of necessary documentation required for tax compliance, including:
- Automation of Document Handling: Creation, distribution, storage, and management of compliance documents, minimizing manual processes.
- Key Documents Handled:
- Tax Exemption Certificates
- W-8 Forms, W-9 Forms
- 1099 Forms for Contractors
- Power of Attorney Forms
- Identification Forms (e.g. Passports, Drivers Licenses)
- Audit Trail Establishment: These solutions help businesses reduce audit exposure by maintaining thorough and organized records of tax-exempt transactions and other relevant documents.
- Integrated and Standalone Options: Products can be bundled with calculation and returns solutions or purchased independently, with optional managed services for assistance in document collection and validation.
Licensing and Registrations
Avalara provides licensing and registration services that support businesses in navigating regulatory requirements:
- Business Licenses and Permits: Helps businesses obtain the necessary licenses and permits at the local, state, and federal levels.
- VAT Registration Services: For global businesses, Avalara assists in obtaining and maintaining VAT registrations, a vital step in ensuring compliance with local tax laws when conducting international transactions.
- Flexible Purchase Options: Licensing and registration services can be acquired either as standalone services or as an ongoing subscription for sustained management and updates.
Fiscal Representation
In an increasingly globalized economy, Avalara addresses the need for local representation through fiscal representation services. These services include:
- Local Representation: Acting as the contact point with tax authorities in jurisdictions where a business operates but does not have a physical presence.
- Subscription-Based Services: Avalara’s fiscal representation is available on a subscription basis, allowing businesses to fulfill local compliance requirements efficiently.
Conclusion
Overall, Avalara Inc. offers a diverse range of tax compliance solutions that cater to the unique needs of various industries and regions. Its comprehensive approach combines advanced technology with industry-specific expertise to provide businesses with the tools and support needed to navigate the complexities of tax compliance effectively. Through continuous product development and expansion into new regions and offerings, Avalara positions itself as a leader in the field of tax compliance automation and technology.