## Slide 1 **Layout name :** Title Slide **H1 :** **P1 :** Driving Long-Term Growth through Innovation and Market Expansion **H2 :** **P2 :** An Update for the Board of Directors **H3 :** **P3 :** An Update for the Board of Directors [Current Date] Presented by [Your Name] Chief Executive Officer, Avalara **H4 :** **P4 :** [Current Date] --- ## Slide 2 **Layout name :** Executive **H1 :** Untapped Potential in Tax Compliance Automation **P1 :** Avalara stands at a pivotal moment in its growth trajectory. With only 5% of the $8 billion US tax compliance market currently automated, we face an unprecedented opportunity to expand our market share and drive long-term revenue growth. Our current position as a leader in tax compliance software, coupled with our strong partner network and innovative solutions, provides a solid foundation for capturing this untapped potential. **H2 :** Challenges in Scaling and Market Penetration **P2 :** Despite our strong position, we face significant challenges. Our sales and marketing expenses remain high at 59% of revenue, impacting our profitability. Our free cash flow has declined from $28.4M in 2016 to $18.5M in 2018, indicating potential cash flow management issues. Additionally, our current negative operating margin of -17% requires substantial improvement to reach our long-term target of 20-25%. These financial hurdles, combined with the need to rapidly expand our content coverage and automate more processes, present complex obstacles to our growth strategy. **H3 :** Strategic Investments in Automation and Content **P3 :** To overcome these challenges and capitalize on the market opportunity, we propose a two-pronged strategy: 1) Accelerate investments in automation technologies to improve operational efficiency and reduce costs. 2) Expand our content coverage to serve more industries and capture a larger market share. By allocating resources to these key areas, we can drive down our sales and marketing expenses, improve our cash flow, and steadily increase our operating margin. This approach will position Avalara to dominate the US tax compliance market and set the stage for international expansion, particularly in markets where real-time, online tax compliance is becoming the norm. --- ## Slide 3 **Layout name :** 3h, 3h, (1), 5h **Title :** Unlocking the $8 Billion US Market Potential **H1 :** Vast Untapped Market Opportunity **P1 :** $8 billion Total Available Market (TAM) in the US Only 5% of the market currently automated Over 90% of companies still use manual tax compliance methods Potential for significant market share growth **H2 :** Avalara's Unique Position **P2 :** Market leader in tax compliance software Strong partner network with 700+ integrations Innovative solutions covering multiple tax types High customer retention rate (107% net revenue retention) Scalable **platform** capable of handling increased demand **H3 :** SMBs represent the largest segment by volume, offering significant growth potential **P3 :** [Chart: Automation Drives Higher Gross Margins](20/) --- ## Slide 4 **Layout name :** 3h, 3h, (1), 5h **Title :** Automation as a Catalyst for Efficiency and Growth **H1 :** Driving Operational Efficiency **P1 :** Reduce manual processes in tax calculation and filing Decrease error rates and compliance risks Lower operational costs through streamlined workflows Improve scalability to handle growing transaction volumes **H2 :** Investing in Next-Generation Automation **P2 :** Develop AI-powered tax classification and determination Implement machine learning for improved accuracy and efficiency Create automated content updates for real-time compliance Enhance API capabilities for seamless partner integrations **H3 :** Automated processes in North America yield 75% gross margin compared to 30% for manual processes **P3 :** [Chart: Automation Drives Higher Gross Margins](26/) --- ## Slide 5 **Layout name :** 5t, 5t **Title :** Content Expansion as a Competitive Advantage **H1 :** **P1 :** Strategic Content Expansion - Currently cover 50% of required tax content - Target expansion to cover 80% of tax content within 2 years - Focus on high-growth sectors and emerging tax types - Develop comprehensive international tax content - Impact on Market Share - Ability to serve more industries and geographies - Increased competitiveness in enterprise segment - Potential to become the industry standard for tax content - Opportunity to create new revenue streams through content licensing **H2 :** **P2 :** Implementation Roadmap - Prioritize content areas based on market demand and revenue potential - Invest in automated content collection and structuring technologies - Expand partnerships with industry experts and local tax authorities - Develop a scalable content management system - Implement continuous updates and quality assurance processes --- ## Slide 6 **Layout name :** Audience **Audience Summary :** The Board of Directors at Avalara consists of seasoned executives and industry leaders in the technology sector. They are strategic thinkers with a keen focus on long-term value creation, financial performance, and corporate governance. This audience prefers concise, data-driven presentations that highlight key metrics, market trends, and strategic initiatives. They are measured by their ability to provide effective oversight, guide corporate strategy, and ensure the company's sustainable growth and profitability. Communication with this group should be direct, transparent, and focused on high-level strategic matters that impact the company's future. **Title :** **P1 :** **H2 :** **Big Idea :** By investing in automation and expanding our content coverage, we can capture a larger share of the $8 billion US market and drive long-term revenue growth. **H3 :** **Audience Journey :** | Move audience from | Move audience to | |--------------------|-------------------| | Focusing solely on current market share | Envisioning Avalara's potential to dominate the $8 billion US market | | Perceiving content expansion as resource-intensive | Recognizing content coverage as a key driver for market capture | | Hesitating to allocate resources for new initiatives | Eagerly supporting investment in automation and content expansion | | Prioritizing short-term financial gains | Embracing a long-term vision for sustainable revenue growth | ---