– Tax compliance SaaS.
– Dominant in US mid-market segment.
– Sharetaker with high retention and long-term 20% CAGR growth prospects.
– Further upside from enterprise and int. businesses.
– Shares are down due to a general sell-off in growth stocks and e-comm worries.
Valuation: Trades at 7.5x sales and 10x GP for ’22, with expected 20%+ revenue CAGR. Assuming 30%+ terminal op margins, the stock sits at 20x ’22 earnings power.
Exp. gain: IRR 20-30% for the next 5-10 years.
Full AVLR write-up (free guest account required):