Call Spread on AVLR on 2/16/2021

Avalara, Inc. (AVLR), together with its subsidiaries, provides cloud-based solutions for transaction tax compliance worldwide.

The company offers a suite of compliance solutions that enable businesses to address the complexity of transaction tax compliance; process transactions in real time; produce detailed records of transaction tax determinations; and reduce errors, audit exposure, and total transaction tax compliance costs.

The company's solutions include AvaTax, a solution for determining sales tax in the United States; Avalara Returns for tax return preparation, filing, and remittance; and Avalara Compliance Document Management solution, which creates, validates, stores, and manages sales tax exemption and reseller certificates.

It also provides professional services, including nexus studies and analysis, voluntary compliance initiatives, tax registrations, and specialized tax research; MatrixMaster, a product taxability database for retail operations; Avalara CloudConnect, a hardware device for processing and storing transactions on-site for regularly scheduled uploads to AvaTax; Avalara Licensing, an online platform for business licenses and sales tax registrations; VAT Expert, a Web-based solution that checks the validity of customer and supplier value-added tax (VAT) numbers and provides VAT determinations in the form of invoices; and Brazilian tax compliance solutions that address the Brazilian transaction tax regimes through electronic compliance report validation, electronic invoice authentication and preparation, tax determination, and returns preparation; and Avalara Item Classification, a solution that addresses the process of assigning proper country-specific Harmonized System codes to products.

The company was formerly known as Advantage Solutions, Inc. and changed its name to Avalara, Inc. in December 2005.

On Wednesday, February 10, Avalara, Inc. reported 4th Quarter December 2020 earnings of $0.08 per share on revenue of $144.8 million. The consensus estimate was a loss of $0.06 per share on revenue of $133.4 million. Revenue grew 34.5% on a year-over-year basis.

The company said it expects first quarter revenue of $142.0 million to $144.0 million and revenue of $628.0 million to $633.0 million. The current consensus revenue estimate is $139.28 million for the quarter ending March 31, 2021 and revenue of $620.71 million for the year ending December 31, 2021.

This past week, Avalara, Inc. announced the release of 10 newly certified integrations with accounting, ERP, ecommerce, point-of-sale, mobile commerce, and CRM software applications, in addition to adding 22 new marketplace customers utilizing Avalara tax technology solutions, which should share prices higher.

We will be trading a Call Spread on March 19th.

Last Trade: $173.78

Trading Range: $55.50 - $185.37

Trade Buy 1 March $170.00 Call at $12.54 Sell 1 March $185.00 Call at $5.23 For a net debit of $7.31 Profit/Loss Analysis Breakeven at $177.31 Maximum profit is $769.00 at strike of $185.00 Maximum loss is ($731.00) at strike of $170.00 Closing Summary Sold 1 March $170.00 Call at $0.00 Bought 1 March $185.00 Call at $0.00

Position closed on 3/19/2021 at price of $0.00 with a -100.00% loss in 31 days.

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