Avalara Analyst Day Virtual

Long-term target model (NON-GAAP) % OF REVENUE 2021 LT TARGET Gross Margin 73% 80-82% Peer differences dilute down over time › Compliance Sales and Marketing 38% 33-35% › Content research Research and Development 20% 14-16% › Partner commissions General and Administrative 14% 8-10% Operating Margin 1% 20-25% Note: See appendix for reconciliation of non-GAAP to GAAP financials. AVALARA ANALYST DAY VIRTUAL | 43

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