Avalara Analyst Day Virtual

Reconciliation to Non-GAAP financial measures ($000) Reconciliation of Non-GAAP subscription gross profit Subscription gross profit Stock-based compensation expense Amortization of acquired intangibles Non-GAAP subscription gross profit Reconciliation of Non-GAAP subscription gross margin Subscription gross margin Stock-based compensation expense Amortization of acquired intangibles Non-GAAP subscription gross margin Free cash flow ASC 605 2018 ASC 605 2019 ASC 606 2019 ASC 606 2020 ASC 606 2021 ASC 606 Q1 21 ASC 606 Q1 22 $101,285 $1,661 $2,020 $136,789 $2,955 $2,645 $104,966 $142,389 73% 73% 1% 2% 1% 1% 75% 76% Net cash used in operating activities Purchases of property and equipment $(2,913) $22,150 $22,150 $42,618 $34,118 $(28,247) $(23,066) $(14,373) $(7,885) $(7,885) $(4,501) $(7,659) $(1,366) $(2,148) Capitalized software development costs $(1,110) $(2,295) $(2,295) $(4,159) $(13,764) $(2,311) $(5,905) Free cash flow $(18,396) $11,970 $11,970 $33,958 $12,695 $(31,924) $(31,119) AVALARA ANALYST DAY VIRTUAL | 51

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