- Needham analyst Scott Berg attended Avalara, Inc's (NYSE:AVLR) virtual analyst day, in which the company highlighted new products and provided intermediate-term financial targets that beat expectations.
- Avalara's new e-invoicing product was the center of further product discussion as it could represent a broad moat in what will likely be a large TAM.
- The new Returns for Accountants product should be an easy seller yet could create a new, sneaky Trojan horse-like partner channel.
- These new products and recent cross-sales yield new visibility into how the company can reach its 20% - 25% FY25 revenue growth target.
- A newly revealed FY25 operating model targeting a Rule of 40 structure was surprising to the upside on profitability because the lack of margin leverage at a decelerating revenue growth rate has been a recent focus for the AVLR short thesis.
- Berg maintained a Buy rating on the stock with a price target of $150.
- Price Action: AVLR shares traded lower by 2.73% at $72.76 on the last check Wednesday.
