Avalara Analyst Day Virtual

FY 2025E TARGET FRAMEWORK (NON-GAAP) Path to Rule of 40 METRIC 2019 2020 2021 FY25 TARGET DRIVERS Total Revenue Growth 41% 31% 40% Organic Revenue Growth 29% 29% 20-25% New customers & expansion Gross Margin 72% 74% 73% 76-78% Automation & Scale S&M as a % of Revenue 41% 37% 38% 34-36% Efficiency & balanced growth R&D as a % of Revenue 20% 21% 20% 16-18% Prioritization & scale G&A as a % of Revenue 15% 15% 14% 10-12% Economies of scale Operating Margin -4% -1% 1% 10-15% Scale & efficiency Free Cash Flow 3% 7% 2% 13-18% Economies of Scale Note: See appendix for reconciliation of non-GAAP to GAAP financials. AVALARA ANALYST DAY VIRTUAL | 41

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