Avalara Inc's Competitiveness
A competitive positioning analysis and financial ratio benchmarking of Avalara Inc (AVLR) against its publicly traded competitors: sales growth, net income, profitability, valuation and market share, plus each peer's market capitalization, revenue, income and employees. Free below: the top 5 peers. Subscriber access adds the full competitor list and CSV downloads.
Key Findings: Avalara Inc vs Its Competitors
- TTM: Trailing 12-month revenue of 789M vs 806M combined for tracked competitors (49.5% combined share).
- Trending: Latest-quarter revenue run-rate is accelerating (+5.7% annualized vs trailing 12 months), vs decelerating (-39.7%) for its tracked peer group.
- Growth: Avalara Inc generated 23.4% revenue growth year over year in Q2 2022, vs 14.4% for its tracked competitors combined.
- Profitability: Its -26.8% net margin compares with -5.6% for the peer group.
- Peer revenue share: Avalara Inc accounted for 63.2% of combined revenue among its tracked peer group, up from 61.4% a year earlier.
- Peer differentiation: Revenue per employee of $0.18M compares with $0.38M for the peer group (0.5x).
Every figure above is sourced and cited in detail further down this page (Market Structure, Profitability & Cost Structure, Productivity vs Peers).
AVLR Sales vs. its Competitors, Q2 2022
Avalara Inc reported revenue growth of 23.38 % year on year in Q2 2022, above its competitors' combined revenue growth of 14.40 %.
With a net margin of -26.77 %, Avalara Inc reported lower profitability than its competitors (-5.57 %).
Avalara Inc generated 63.21 % of the combined sales of its peer group, up from 61.44 % a year earlier.
Avalara Inc vs. its Competitors, Q2 2022
Revenue growth, year on year
Net margin
Revenue run-rate vs trailing 12 months
TTM net margin
TTM = trailing twelve months. Run-rate annualizes the latest quarter (×4) and compares it to TTM. In millions of $. High-Confidence Competitors are named as a competitor directly in an SEC filing; Similar-Size Competitors are the closest peers by market-cap rank within the same industry; Similar Growth & Profitability Competitors are the closest peers by combined revenue growth, operating margin and ROIC, all independent of the competitor list.
TTM revenue, latest-quarter run-rate and net income/margin benchmarked across Avalara Inc and its 4 competitor groupings. Available under Commercial License.
| Entity | TTM Revenue | Rev Run-rate vs TTM |
|---|---|---|
| Avalara Inc. | $12,345M | +12.3% · Accelerating |
| Competitors combined | $12,345M | +12.3% · Accelerating |
| High-Confidence Competitors (1) | $12,345M | +12.3% · Accelerating |
| Similar Growth & Profitability (6) | $12,345M | +12.3% · Accelerating |
TTM revenue, run-rate and net margin benchmarking across Avalara Inc's competitor groups requires a Commercial License.
For context: the Software & Programming industry grew revenue 16.1% year over year, combined, vs 23.4% for Avalara Inc. Avalara Inc's share of combined industry revenue moved from 0.06% to 0.06%, a gain of 0.00 percentage points.
Avalara Inc's Competitor Quality Breadth
Share of each group, trailing 12 months: profitable (net margin > 0), expanding (revenue growth > 0), growing faster than the industry's own median, and financially distressed (Piotroski F-Score of 2 or below).
| Entity | Profitable | Expanding | Above Industry Growth | Distressed |
|---|---|---|---|---|
| Avalara Inc. | No | Yes | Yes | No |
| Competitors combined (2) | ||||
| High-Confidence Competitors (1) | ||||
| Similar Growth & Profitability (8) | 0.00 % (0 of 8) | 100.00 % (8 of 8) | 100.00 % (8 of 8) | 14.30 % (1 of 7) |
Source: CSIMarket API, trailing 12 months. Altman Z-Score is not shown here: it is not populated in the underlying data for any company. Percentages are of companies in each group that report the relevant metric, not of the full group size.
AVLR Stock Performance relative to its Competitors
AVLR Stock Performance relative to High-Confidence Competitors
AVLR Stock Performance relative to Similar Growth & Profitability Competitors
5 Best-Performing Tracked Competitors, Trailing 12 Months
| # | Competitor | TTM Share Price Return | vs U.S.A. 500 |
|---|---|---|---|
| 1 | Vertex Inc | 282.9% | Outperformed |
TTM share price return and U.S.A. 500 outperformance for Avalara Inc's best-performing tracked competitors requires a Commercial License.
Source: CSIMarket API, trailing 12 months.
Avalara Inc's Comment on Competition and Industry Peers
Because transaction taxes exist at the interface of trade and government, political, economic, social, and technical developments may have an influence on our firm. Changes in these sectors include increasing the complexity for businesses to handle tax, government interest in developing and enforcing legislation, and firms use of technology to produce effective compliance results.
The industry that provides support for transaction tax compliance is highly competitive and fragmented, but it is maturing. Rising complexity and increasing need for automated solutions have resulted in greater awareness of external solutions and there are now multiple public companies offering automated tax compliance solutions. Avalara believes that, in the age of digital commerce, it is inevitable that all businesses will adopt automated solutions to tax compliance over time. Until then, businesses will continue to employ a mix of approaches to address transaction tax compliance, including:
tax-specific solutions from vendors, including Avalara, but also Sovos, TPS Unlimited, Inc. d/b/a TaxJar (a Stripe, Inc. company), Thomson Reuters, Vertex, Inc., and Wolters Kluwer NV;
rudimentary tax calculator services and/or people-intensive, do-it-yourself approaches that rely on internal transaction-specific research and/or purchase of tax content information from third parties, manual determination, static tax tables, spreadsheet software, or rate calculator services, as well as manual filing and remittance activities; and
outsourced transaction tax compliance services offered by accounting and specialized consulting firms. We believe customers, including customers that are business applications providers, consider the following factors when selecting a transaction tax compliance solution:
ability to improve overall transaction tax compliance;
ability to deliver real-time tax determinations;
ease of deployment and use;
ease of integration with the customer?s business applications;
ability to integrate with and aggregate data across multiple business applications to satisfy compliance for omnichannel commerce;
ability to address multiple compliance functions from registration and licensing, initial taxability, and tax rate determination to procurement and management of compliance-related documents to preparation and filing of tax returns and remittance of funds;
total cost of ownership; and
tax content applicable to the customer?s business.
Publicly Traded Peers of Avalara Inc.
Revenue and income for trailing 12 months, in millions of $, except employees| Company | Market Cap | Revenues |
|---|---|---|
| Avalara Inc. | 8,225.21 | 789.43 |
| Agile Therapeutics Inc | 10.35 | 19.72 |
| Vertex Inc | - | 785.87 |
| SUBTOTAL | 8,235.56 | 1,595.02 |
Sources: Avalara Inc.'s official press releases and regulatory filings; CSIMarket.com's market research; and the financial filings and press releases of the other companies cited.
Updated on:
Focus of this report: publicly traded companies. Ten additional tables on Avalara Inc. versus competitors, including market share analysis, are in the navigation menu under Competition. To download the tables, please subscribe.
Avalara Inc's Competitors Named by the Company
Competitive relationships identified from SEC filings and corroborating sources, each with a basis and confidence.| Competitor | Basis | Confidence |
|---|---|---|
| Thomson Reuters Corporation | Named by the company | 85% |
| Wolters Kluwer NV | Named by the company | 85% |
Filing basis, confidence, active dates and source counts for Avalara Inc's named competitors require a Commercial License.
Methodology: relationships are extracted from SEC filings (named-competitor disclosures) and corroborating sources. Named by the company = explicitly disclosed as a competitor; Inferred = derived from corroborating signals. Confidence reflects evidence strength.
Avalara Inc's Business Segment Mix vs Peers
Revenue by operating segment or division, as named and reported by each company. Segment names are the filer's own and are not standardized across companies. Do not assume a same-named or similarly-named segment is defined identically between two companies. Shares are of each company's own total revenue and are not required to sum to 100% (intersegment revenue, unallocated items).| Company | Largest Segment |
|---|---|
| Vertex Inc | Single reportable segment 100.00 % |
Source: operating segment revenue as reported in each company's SEC filings (10-K/10-Q), via the CSIMarket API, leaf-level reportable segments only (parent roll-up segments are excluded where sub-segments are separately disclosed).
Avalara Inc's Productivity vs Peers Comparison
Revenue and income per employee, trailing 12 months, in $; market cap in millions of $| Company | Market Cap | Revenue / Employee | Income / Employee |
|---|---|---|---|
| Avalara Inc. | 8,225 | 176,804 | -37,264 |
| Agile Therapeutics Inc | 10 | 1,038,000 | -834,421 |
| Vertex Inc | - | 374,222 | 1,702 |
| PEERS TOTAL | 10 | 380,174 | -5,795 |
Avalara Inc's Geographic Revenue Exposure vs Peers
Revenue by country/region as reported in each company's most recent filing. Disclosure granularity varies by filer (some report by country, others by broad region) and is shown as disclosed.| Company | Largest Market |
|---|---|
| Avalara Inc. | US 93.69 % |
Source: revenue geography as reported in each company's SEC filings (10-K/10-Q), via the CSIMarket API. Percentages are of that company's own total consolidated revenue for its most recent reported period.
Avalara Inc's Profitability & Cost Structure
Trailing 12-month margins from SEC-filed financials. Operating margin is compared to the Software & Programming industry median; gross margin, EBITDA margin and capital intensity are compared to the live industry average (343 companies). See the full Software & Programming industry profitability benchmarks.| Metric | Company | Industry | Difference |
|---|---|---|---|
| Gross Margin | 70.21 % | 64.29 % (avg) | +5.9 pp |
| Operating Margin | -19.73 % | industry median | +3.3 pp |
| EBITDA Margin | -14.63 % | 2.54 % (avg) | -17.2 pp |
| Capital Intensity (Capex / Revenue) | 3.43 % | 4.79 % (avg) | -1.4 pp |
Source: CSIMarket API, trailing 12 months. SG&A and R&D as a share of revenue have limited coverage as this data is backfilled and appear only where reported. Higher capital intensity is not inherently negative; it reflects the industry's asset requirements.
Avalara Inc's Valuation vs Competitive Position
Valuation multiples vs the Software & Programming industry average (343 companies, excluding loss-making/negative-equity outliers), alongside returns on capital for context on whether a premium or discount lines up with measurably stronger or weaker returns. See the full Software & Programming industry valuation benchmarks.| Metric | Company | Industry Average | Difference |
|---|---|---|---|
| P/E | - | 39.4x | - |
| EV / EBITDA | - | 21.7x | - |
| P/B | 6.9x | 5.4x | +1.5x |
| Return on Equity | -16.14 % | industry aggregate | -34.83 % |
| Return on Invested Capital | -4.88 % | -0.26 % (avg) | -4.62 % |
Source: CSIMarket API, trailing 12 months. A valuation premium or discount is not, by itself, a judgment of over- or under-valuation. Compare it against the return and growth context shown elsewhere on this page.
Avalara Inc's Multi-Year Financial Trajectory
Fiscal-year revenue growth, operating margin, return on invested capital and P/E, as reported in SEC filings.| Metric | 2019 | 2020 | 2021 |
|---|---|---|---|
| Revenue Growth | - | 30.89 % | 39.64 % |
| Operating Margin | -14.61 % | -12.38 % | -16.73 % |
| Return on Invested Capital | -6.90 % | -3.67 % | -4.21 % |
| P/E | - | - | - |
Source: CSIMarket API, fiscal-year figures. P/E is this company's own historical ratio at each fiscal year end and can swing sharply around an earnings trough: that is real, not a data error.
Avalara Inc's Strategic Group Map
Every company in Avalara Inc's industry and named-competitor list, plotted by trailing 12-month revenue growth and operating margin. Avalara Inc is shown in red; its closest peers by combined growth, margin and ROIC (the Similar Growth & Profitability group above) are labeled.
Source: CSIMarket API, trailing 12 months. Extreme outlier values (from near-zero-revenue companies) are excluded from the plotted cloud but never from the highlighted company or its labeled peers.
Avalara Inc's Competitive Forces (Porter's Five Forces)
Only the forces this data can support honestly are shown; the other three are marked as such rather than guessed.| Force | Assessment | Basis |
|---|---|---|
| Barriers to Entry | Lower than typical for the industry | Capital intensity (capex / revenue) of 3.43 % vs industry average 4.79 % (see Profitability & Cost Structure above) |
| Supplier Power | Not covered on this page | See Avalara Inc's dedicated suppliers page for concentration and dependency data |
| Buyer Power | Not covered on this page | See Avalara Inc's dedicated customers page for concentration and dependency data |
| Threat of Substitutes | - | No systematic data source for cross-product substitution exists in this system; not estimated |
Note: this is a partial, data-grounded application of the framework, not a complete strategic assessment. Rivalry and barriers-to-entry readings are mechanical translations of the HHI and capital-intensity figures shown elsewhere on this page, not independent judgments.
Avalara Inc's Industry Attractiveness & Competitive Strength
A CSIMarket composite, not a standard field: each axis is an equal-weighted average of three factors already shown elsewhere on this page (industry growth, industry profitability and rivalry for attractiveness; relative market share, profitability and growth vs industry for strength). Disclosed as a designed methodology, not a precision measurement.
Avalara Inc falls in the Low attractiveness / Medium strength cell: Harvest.
Source: CSIMarket API, trailing 12 months. Each axis score is a simple 1(low)/2(medium)/3(high) average across its three inputs -- a transparent, disclosed simplification, not a validated academic scoring model.
Avalara Inc's SWOT
Every point below is a fixed rule applied to a metric already shown elsewhere on this page (Market Structure, Profitability, Valuation, Run-Rate, Stock Performance, Quality Breadth) not an independent strategic assessment. A blank quadrant means no rule was met, not that none apply.Strengths
- Latest-quarter revenue run-rate is accelerating (+5.7% annualized vs trailing 12 months).
Weaknesses
- Return on equity 34.8 points below the industry aggregate.
Opportunities
- Industry revenue growing at a healthy 11.2% median pace.
Threats
- Tracked peer group's revenue run-rate is broadly decelerating (-39.7% annualized).
Methodology: mechanical, rule-based SWOT. Each bullet reuses a figure already sourced and cited elsewhere on this page; nothing here is generated narrative or independent analyst judgment.
Avalara Inc's Financial Strength vs Peers Comparison
Quick ratio, working capital, debt to equity and asset turnover, trailing 12 months| Company | Quick Ratio | Working Capital | Debt / Equity |
|---|---|---|---|
| Avalara Inc. | 2.72 | 3.20 | 0.93 |
| Agile Therapeutics Inc | 0.13 | 0.54 | - |
| Vertex Inc | 0.54 | 0.93 | 1.34 |
Quick ratio = cash / current liabilities; working capital ratio = current assets / current liabilities; asset turnover = revenue / total assets. Peers in the Blank Checks industry are excluded.
Avalara Inc's Revenue and Income Growth vs Peers
Quarterly revenue and net income growth, year over year and quarter over quarter| Company | Period | Revenue Y/Y | Income Y/Y |
|---|---|---|---|
| Avalara Inc. | Q2 2022 | +23.4 % | - |
| Agile Therapeutics Inc | Q2 2024 | -2.2 % | - |
| Vertex Inc | Q2 2026 | +10.5 % | - |
| PEERS TOTAL | +16.4 % | - |
Growth is shown only where both periods are positive. Peers in the Blank Checks industry are excluded.
Avalara Inc's Peers' Costs of Sales and Capital Expenditures
Context for revenue growth: peer costs and capex, year over year and quarter over quarter| Company | Period | Costs Y/Y | Capex Y/Y |
|---|---|---|---|
| Avalara Inc. | Q2 2022 | +25.9 % | -8.9 % |
| Agile Therapeutics Inc | Q2 2024 | -1.2 % | - |
| Vertex Inc | Q2 2026 | +14.7 % | - |
Avalara Inc's Returns and Turnover vs Peers
ROA, ROI and ROE (trailing 12 months), receivables and inventory turnover| Company | ROA | ROI | ROE |
|---|---|---|---|
| Avalara Inc. | - | - | - |
| Agile Therapeutics Inc | - | - | - |
| Vertex Inc | 0.29% | 0.52% | 1.41% |
ROA = net income / total assets; ROI = net income / investments; ROE = net income / equity; turnover ratios use trailing 12 month revenue (receivables) and cost of sales (inventory).
Avalara Inc's Valuation vs Peers
P/E, price to sales, PEG, price to cash flow and price to book| Company | P/E | Price / Sales |
|---|---|---|
| Avalara Inc. | - | 10.42 |
| Agile Therapeutics Inc | - | 0.52 |
| Vertex Inc | - | - |
| PEERS AVERAGE | - | 5.16 |
P/E = price / diluted EPS (trailing 12 months); PEG = P/E divided by EPS growth; the average row divides the peers' combined market cap by their combined income, sales, cash flow and equity.