Avalara, Inc.
Thesis
Avalara is a high gross margin business with a sticky product and a large underpenetrated total addressable market (TAM). The management team is reinvesting in sales and marketing, which is viewed as growth capital, and the company is expected to grow significantly over the next few years due to favorable market conditions and a high retention rate.
Did it work?
The stock price has declined by 5.0% since the pitch, which contradicts the long thesis that anticipated significant growth. Given that the thesis highlighted a sticky product and favorable market conditions, the negative price performance suggests that these factors have not translated into expected market confidence or growth. Therefore, the thesis has failed to materialize as anticipated.
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