Avalara Analyst Day Virtual
Business model advantage:
resilient pricing model
Calculation subscription tiered pricing model
FROM
ΤΟ
% CHANGE FROM
MIDPOINT TO
ENDPOINT
20%
% CHANGE IN
ANNUAL FEE
20%
ANNUAL FEE
7,501
10,000
$5,457
10,001
15,000
$6,852
15,001
20,000
20%
$8,671
27%
Illustrative customer experiencing lower transaction volume
CUSTOMER
SALES BELOW
SALES ABOVE
EXPECTATION
Actual transactions
Avalara fees
EXPECTATION
EXPECTATION
12,501
$13,848
8,751 (30%)
$12,453 (10%)
17,501 (40%)
$15,667 (13%)
AvaTax
Purchased transaction tier
15,000
10,000
20,000
AvaTax fees
$6,852
$5,457 (20%)
$8,671 (27%)
Returns
Volume
159
159
Return fees
$6,996
$6,996 (0%)
159
$6,996
(0%)
Resilient pricing
approach:
› Transaction bands are
designed to minimize
frequent changes
between tiers
> Subscription revenue is
not impacted at the same
rate as the changes
between transaction tiers
Returns and other
products are not as
exposed to the volatility
of the market
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