Avalara Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS and CLOUD TOP 500 Market Report

47 Avalara

Avalara Strengths, Domain Expertise, and Key Differentiators

Avalara's key strengths lie in its domain expertise, extensive partner network, and innovative product portfolio. With over 1,200 signed partner integrations, Avalara provides tax compliance solutions that integrate seamlessly with various business applications, including ERP, eCommerce, POS, and CRM systems. Additionally, Avalara's AI/ML features help businesses manage complex tax compliance requirements globally, making it a leader in the tax compliance automation space. Avalara AvaTax integrates with software systems like Salesforce, Epicor, Netsuite, Sage, Microsoft, and others.

Avalara Recent Developments

In May 2023, Avalara, Inc. introduced Avalara E-Invoicing and Live Reporting, a compliance API aimed at simplifying e-invoicing mandates for multinational businesses. The API helps businesses manage the complexities of evolving e-invoicing requirements globally, streamlining compliance, optimizing payment cycles, and reducing costs. It offers a centralized approach to international compliance, integrating into various systems via a single API and adhering to evolving legislative requirements.

In May 2022, Avalara, Inc. launched Avalara MyLodgeTax Pro, a SaaS solution aimed at helping managers of multiple short-term rental properties increase efficiency and ensure compliance through automation. The software streamlines occupancy and sales and use tax calculations, manages lodging registrations/permits, and automates tax returns and remittance processes for various jurisdictions, catering to professional property managers with 5–40,000 properties.

In September 2021, Avalara launched an array of new tax compliance automation products and services designed specifically for accountants. The launch was timed for the opening of Avalara’s annual user conference, Crush. Avalara for Accountants provides accounting professionals with the technology to simplify and streamline their tax compliance practice, including sales tax returns preparation and filing automation options; license research, preparation, and management; sales tax expert advice.

Avalara Mergers and Acquisitions (M&A) Activities

In August 2022, Avalara, Inc. announced its acquisition by Vista Equity Partners for $8.4 billion in an all-cash transaction. Founded in 2004, Avalara is known for its cloud-native tax compliance solutions and extensive partner network. The acquisition aims to enhance Avalara's platform through strategic investments in innovation, workforce expansion, and M&A activities, leveraging Vista's expertise in enterprise software. Upon completion, Avalara will operate as a private company under the same name and brand.

In November 2021, Avalara acquired 3CE Technologies, a commodity classification company headquartered in Montreal. 3CE's technology automates the process of identifying and mapping codes for cross-border transactions. The acquisition will enable Avalara to make it easier to sell anywhere in the world across new industries and use cases.

In October 2021, Avalara acquired two companies. The first one being - Track1099, the Stanford, California-based e-filing company, and the second one, later in October, CrowdReason LLC, a property tax software company headquartered in Carrollton, Texas. The acquisition of Track1099 will help Alvara businesses manage IRS form filing requirements, and the acquisition of the property tax compliance software developer CrowdReason will boost Avalara’s document management, tax content, and property tax returns offerings.

In 2021, Avalara acquired DAVO Technologies, Business Licenses, Transaction Tax Resources, and INPOSIA Solutions.

In December 2020, Alvara purchased Impendulo Limited, a London-based provider of insurance tax compliance solutions. Impendulo gives Avalara access to the global insurance compliance business, a new market that could benefit from automation technology.

In February 2019, Avalara acquired Seattle startup Indix to boost the product description database. Founded in 2013, by the former longtime Microsoft executive Sanjay Parthasarathy, Indix developed an intelligence platform that helps businesses analyze and visualize product information across various industries. Avalara intends to use the Indix AI to maintain and expand its already massive tax content database, which includes international product codes and classifications; taxability rules; exemption conditions; tax holidays; jurisdictions; boundaries; tax rates; thresholds and registration, compliance, and return preparation and filing requirements.

Avalara Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Avalara applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Avalara and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Avalara Platform, Avalara Compliance Cloud, Avalara AvaTax, Avalara Returns, Avalara CertCapture customers.

Avalara Key Enterprise and Cloud Applications

Avalara Platform, Avalara Compliance Cloud, Avalara AvaTax, Avalara Returns, Avalara CertCapture

Avalara Revenues, $M:

Type/Year20222023YoY Growth, %
Total Revenues, $M Subscribe Subscribe Subscribe
Enterprise Applications Revenues, $M Subscribe Subscribe Subscribe
Cloud Applications Revenues, $M Subscribe Subscribe Subscribe

* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

Avalara Revenue Breakdown By Type, $M:

TypeLicenseServicesHardwareS&MSaaSPaaSIaaSOtherTotal
% of Total Revenues Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe 100%
Revenues, $M Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe

Avalara Revenues By Region, $M

Region% of Total Revenues2023 Total Revenues, $M2023 Enterprise Applications Revenues, $M2023 Cloud Applications Revenues, $M
Americas Subscribe Subscribe Subscribe Subscribe
EMEA Subscribe Subscribe Subscribe Subscribe
APAC Subscribe Subscribe Subscribe Subscribe
Total Subscribe Subscribe Subscribe Subscribe

Avalara Direct vs Indirect sales

RegionDirect SalesIndirect SalesTotal
Type % Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe

Avalara Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Avalara Customers


No. of Avalara Customers: 41000

No. of Avalara Enterprise Applications Customers: 41000

No. of Avalara Cloud Customers: x

No. of Avalara Cloud Subscribers: x


In 2021, Avalara's customer base included more than 14,890 active core customers, and when combined with its subsidiaries, the total exceeded 41,000 customers. Their clientele comes from various industries and regions, with notable names such as Indinero, Electric Motor Supply Company, PXG, Ag Solutions Group, Ignite Spot Accounting, and Comcast. Avalara's tax compliance solutions are designed to serve businesses of all sizes, ranging from small enterprises to large corporations, establishing them as a preferred choice for tax compliance solutions worldwide.

Avalara Market Opportunities, M&A and Geo Expansions

Avalara is well-positioned to capitalize on the growing demand for AI and ML-powered solutions in tax compliance. AI and ML technologies can help businesses automate complex tax calculations, streamline compliance processes, and improve accuracy. By enhancing its solutions with AI and ML capabilities, Avalara can further differentiate itself in the market and provide added value to its customers.

Another significant opportunity for Avalara lies in its global expansion strategy. With a presence in key markets such as Canada, Europe, South America, and Asia, Avalara has the opportunity to tap into new regions and offer its solutions to a wider audience. By continuing to invest in these geographies and expand its suite of solutions, Avalara can solidify its position as a global leader in tax compliance.

Avalara Risks and Challenges

While their acquisitions have helped them expand their offerings and enter new markets, failing to integrate these acquisitions successfully could negatively impact their business, financial condition, and results of operations. Additionally, the debt incurred for financing these acquisitions poses a significant risk to Avalara's financial stability.

Avalara Ecosystem, Partners, Resellers and SI

Avalara has built a strong ecosystem of technology integrations and partnerships, including system integrators and value-added resellers. Their extensive partnership network enables them to offer cloud-based transaction tax solutions to customers globally. Some of Avalara's key partners include Epicor, Sage, Netsuite, Microsoft, SAP, and Magento, among others, highlighting their commitment to providing innovative tax compliance solutions to businesses worldwide.

In conclusion, Avalara's innovative approach, strategic acquisitions, and strong partner network have positioned them as a leader in the tax compliance automation space. With a focus on expanding their suite of solutions, serving more businesses globally, and embracing emerging technologies, Avalara is poised for continued growth and success in the years to come.

Avalara Cloud Infrastructure Insights

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  • Avalara Public Cloud and Infrastructure (IaaS)
  • Avalara Platform (PaaS)
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  • Avalara Private Cloud and Data Centers

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.


Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).


For additional information on our methodologies, here's the link:

https://www.appsruntheworld.com/About Us
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