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Avalara Announces First Quarter 2021 Financial Results A investor.avalara.com/press-releases/press-releases/press-release-details/2021/Avalara-Announces-First-Quarter-2021-Financial-Results/default.aspx May 06 , 2021 First Quarter Total Revenue of $ 153.6 Million Total Revenue Growth of 38 % From First Quarter 2020 " We are off to a great start in 2021 , continuing the momentum we experienced in 2020. We experienced notable strength throughout our business , resulting in total revenue growth of 38 % year - over - year in first quarter and 47 % year - over - year calculated billings growth , ” said Scott McFarlane , Avalara co - founder and chief executive officer . " The global market for automated tax compliance services is huge and we believe we are still in the early stages of penetrating it as we build out the category - defining global cloud compliance platform . Importantly , as the global economy reopens , we continue to benefit from several tailwinds supporting adoption of these services , such as the generational shift to omnichannel commerce and cloud - based solutions along with growing emphasis on efficiency and the ever greater regulatory scrutiny and penalties for non - compliance . " First Quarter 2021 Financial Results Revenue : Total revenue was $ 153.6 million in the first quarter of 2021 , up 38 % from $ 111.4 million in the first quarter of 2020 . Subscription and returns revenue was $ 139.3 million , up 32 % from $ 105.5 million in the same period last year . Professional services revenue was $ 14.3 million , up 142 % from $ 5.9 million in the same period last year . Gross Profit : GAAP gross profit was $ 108.9 million in the first quarter of 2021 , representing a 71 % gross margin , compared to a GAAP gross profit of $ 77.2 million and a 69 % gross margin in the first quarter of 2020. Non - GAAP gross profit was $ 113.2 million , representing a 74 % non - GAAP gross margin , compared to a non - GAAP gross profit of $ 79.6 million and a 71 % non - GAAP gross margin in the first quarter of 2020 . Operating Loss : GAAP operating loss was $ 25.4 million in the first quarter of 2021 , compared to a GAAP operating loss of $ 19.7 million in the first quarter of 2020. Non - GAAP operating loss was $ 2.2 million in the first quarter of 2021 , compared to a non - GAAP operating loss of $ 8.1 million in the first quarter of 2020 . Net Loss : GAAP net loss was $ 30.0 million in the first quarter of 2021 , compared to a GAAP net loss of $ 15.3 million in the first quarter of 2020. Non - GAAP net loss was $ 6.8 million in the first quarter of 2021 , compared to a non - GAAP net loss of $ 3.7 million in the first quarter of 2020 . Net Loss per Share : GAAP net loss per share was $ 0.35 based on 85.4 million weighted - average shares outstanding in the first quarter of 2021 , compared to a GAAP net loss per share of $ 0.20 based on 77.9 million weighted - average shares outstanding in the first quarter of 2020. Non - GAAP net loss per share was $ 0.08 in the first quarter of 2021 , compared to a non - GAAP net loss per share of $ 0.05 in the first quarter of 2020 . Deferred Revenue : Total deferred revenue was $ 225.5 million at March 31 , 2021 , up from $ 209.7 million at December 31 , 2020 . The current portion of deferred revenue was $ 224.0 million at March 31 , 2021 , up from $ 208.0 million at December 31 , 2020 . Cash : Net cash used in operating activities was $ 28.2 million in the first quarter of 2021 , compared to $ 24.5 million used in operating activities in the first quarter of 2020. Free cash flow was negative $ 31.9 million in the first quarter of 2021 , compared to negative $ 26.1 million in the first quarter of 2020. Cash and cash equivalents totaled $ 638.8 million at March 31 , 2021 , compared to $ 673.6 million at December 31 , 2020 . Calculated Billings : Calculated billings were $ 171.8 million in the first quarter of 2021 , compared to calculated billings of $ 116.7 million in the first quarter of 2020 . Reconciliations of GAAP to non - GAAP financial measures have been provided in the tables included in this release . First Quarter 2021 and Recent Operating Highlights Key Metrics : We ended the first quarter of 2021 with approximately 15,580 core customers , up from approximately 14,890 core customers at the end of the previous quarter and approximately 12,940 in the first quarter of 2020 , representing a 20 % increase year - over - year . Our net revenue retention rate was 107 % in the first quarter of 2021 and has averaged 106 % over the last four quarters . In April 2021 , we acquired the operational assets of DAVO Technologies LLC , a company that helps emerging small businesses automate the daily and ongoing requirements for sales tax for cash consideration of $ 26 million , plus an earnout provision following the achievement of certain performance metrics . DAVO's technology automatically connects to point of sale ( POS ) systems to extract the amounts of tax owed , set sales tax funds aside daily , hold the funds , and then file and pay their sales tax for them when they are due to state and local tax authorities . In April 2021 , we closed the acquisition of INPOSIA Solutions GmbH . INPOSIA is a German software company that delivers e invoicing , digital tax reporting , and system and data integration to support digital transformation efforts and address real - time compliance requirements for businesses . The agreement to acquire INPOSIA Solutions GmbH was announced on December 29 , 2020 . 1/13