WIXLIB

Investor Day 2020June 23, 2020

AgendaVision Scott McFarlaneMulti-Product Journey Sanjay ParthasarathyGlobal Opportunity Amit MathradasGlobal Marketing Jay LeeStrategic Partner Management Greg ChapmanU.S. Go-to-Market Greg StiversInternational Opportunity Salim AliGlobal Compliance Liz ArmbruesterFinance Ross TennenbaumQ&A Scott, Amit, Sanjay, Ross, Greg C.

Legal Disclaimer – Safe HarborThis presentation contains “forward-looking” statements – that is, statements related to future, not past, events. In this context, forward-lookingstatements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,”“anticipate,” “intend,” “may,” “might,” “plan,” “believe,” “continue,” “could,” “estimate,” “seek,” “see,” “likely,” “potential,” “predict,” “project,”“target,” “should,” “would,” “will,” or similar expressions. Forward-looking statements by their nature address matters that are, to different degrees,uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-lookingstatements include: our ability to sustain our revenue growth rate, to achieve or maintain profitability, and to effectively manage our anticipatedgrowth; our ability to attract new customers on a cost-effective basis and the extent to which existing customers renew and upgrade theirsubscriptions; the impact of the novel coronavirus (COVID-19) pandemic and any associated economic downturn on our business operations, results,and financial position; the timing of our introduction of new solutions or updates to existing solutions; our ability to successfully diversify oursolutions by developing or introducing new solutions or acquiring and integrating additional products, services, or content; our ability to maintainand expand our strategic relationships with third parties; our ability to deliver our solutions to customers without disruption or delay; our exposureto liability from errors, delays, fraud, or system failures, which may not be covered by insurance; our ability to expand our international reach andother risk factors discussed in our most recent annual report on Form 10-K filed with the SEC under the heading “Risk Factors.”Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause our actual results,performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forwardlooking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation.Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons why actual resultscould differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.This presentation includes certain non-GAAP financial measures as defined by the Securities and Exchange Commission (the “SEC”) rules. These nonGAAP financial measures are in addition to, and not a substitute for or superior to measures of financial performance prepared in accordance withU.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. Forexample, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all ofwhich could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As required by Regulation G, we have provided areconciliation of those measures to the most directly comparable GAAP measures, which is available in the appendix.3

Scott McFarlaneFounder & CEOVision for our expandingmarket opportunity

Strategichighlights1Biggest problem you’ve never heard of2At the center of four major tailwinds3Accelerating multi-product platform opportunity4Monetizing broad reach leveraged to eCommerceand Cloud5Driving efficient growth to a billion and beyond

Biggest problem you never heard ofEVERYPersonEVERYBusinessEVERYDayINCREASINGWITH TIMEeCommerceENTERP RI SEMED I UMEMERGI NGGlobalizationMobileDigital Tax Collection6

At the centerof four majortailwindsCompliance is onlybecomingmore challengingeCommerceaccelerationCloud accelerationFocus on ROIRegulatoryenforcement7

Accelerating ourjourney to a multiproduct complianceas-a-service platform8

Monetizing ourdeep moatacrosschannelseCommerceMarketplacesBilling & POS700 Pre-built integrations9

OUR VISION:Avalara will become the global cloud compliance platformTo a billion and beyond10

SanjayParthasarathyChief Product OfficerAccelerating our global,multi-product journey

Compliance JourneyGet AdviceRegisterBusinessMap ProductCatalogEstimate TaxManageExemptionsCalculate TaxInvoiceFile ManageNoticesManageAudits12

Customer Journey istration& LicensingPayments &Financial ServicesInsights13

Opportunity1Tax ners14

OpportunityProduct tion& LicensingPayments &Financial ServicesInsights15

OpportunityCurrent ration& LicensingPayments &Financial ServicesInsights16

Product StrategyBroaden BaseOpportunityExpand umentsRegistration& LicensingPayments &Financial ServicesInsights17

Expand CoreFederated CalcReal-time ReturnsEnterprise FeaturesReturns forNew AudiencesNew Tax Typesin CoreReturns forNew Tax TypesOpportunityIntegrationsTax & Product ration& LicensingPayments &Financial ServicesInsights18

Broaden BaseFederated CalcReal-time ReturnsEnterprise FeaturesReturns forNew AudiencesNew Tax Typesin CoreReturns forNew Tax TypesOpportunityIntegrationsGeoWorkflowsDigital LockerTax & Product ContentCalculationReturnsNew Doc TypesNew License TypesComplianceDocumentsRegistration& LicensingPayments &Financial ServicesInsights19

Build FoundationFederated CalcReal-time ReturnsEnterprise FeaturesReturns forNew AudiencesNew Tax Typesin CoreReturns forNew Tax TypesOpportunityIntegrationsGeoInsightsFinancial ProductsWorkflowsContentSubscriptionsDigital LockerTax & Product ContentCalculationReturnsNew Doc TypesNew License TypesComplianceDocumentsRegistration& LicensingExpanded paymentservicesContent &CalculationDelivery NetworkPayments &Financial ServicesInsights20

Product VisionUnified customer experienceInternational solutionsVertical stration& LicensingPayments &Financial ServicesInsightsUnified data infrastructure & contentUnified platform & integrations21

Accelerating Multi-Product CapabilityYears of product buy strategy, transitioning to balanced build & buy strategyProduct 6Product 5BuildProduct 4Product 3Product 2CertExpress2015BuyLodging20162017Product 1201820192020Cross BorderVATCross BorderBrazilContent AI & MLCommunicationsBeverage Alcohol22

Avalara Consumer UseA new service that automates consumer use tax assessment on purchases Fourth pillar of indirect tax that everybusiness needs Drives greater efficiency, cost savings andreduces compliance risk General availability June 1, 202023

Cross-Border ServicesDuty and import tax calculations at checkout HS classification, duty & taxdetermination for 150 jurisdictions B2C eCommerce companiesworld-wideAvaTaxItemClassification Deliver a superior customerexperience for internationalbuyers General availability July 202024

Avalara Returns for Small BusinessA new entry level returns preparation and filing product Features and price point specifically for theemerging small business segment Entry point to Avalara compliance for themore than 5M emerging small businesses Import transactions that already have taxcalculated, from marketplaces andeCommerce platforms General availability August 202025

2020 Significant Product ReleasesCross-BorderConsumer UseReturns forAccountantsReturns forSmall BusinessVAT & GSTAdvanced tion& LicensingPayments &Financial ServicesInsights26

2020 Efficiency & egistration& LicensingPayments &Financial ServicesInsightsReturns ConsoleEU ReturnsEU RegistrationsClassification & Tax Code MappingOnboarding & SupportSupport Deflection27

Building aproductmachine1R&D leadership and bench2Accelerating pace of product releases3Simple and unified experience4Continuous improvement on automation28

Amit MathradasPresident &Chief Operating OfficerHow we roll up our globalmarket opportunity

Monetizing ourdeep moatacrosschannelseCommerceMarketplacesBilling & POS700 Pre-built integrations30

ECOMMERCESTOREMARKETPLACES31

Complexityrequires aneutral thirdparty32

65,000End CustomersOmnichannelstrategy drivescustomer reach 30,000Billable Accounts12,710Core CustomersNote: Billable Accounts includes 11K MyLodgeTax customers that are not included in Core Customers, and excludes International; EndCustomers is the sum of Billable Accounts plus end customers of our eCommerce partners where we are providing calculation servicespaid for by the partner and end customer made at least one API call to Avalara in the last 90 days.33

How we roll it upMid MarketWhat we’re doing to roll it up Estimated U.S. TAM: 600k businessesand 4bn; 10% penetrated New team with sole focus onincreasing penetration ASP range: 10k-20k Multi-product platform approach:increases differentiation, ASPs,and share of wallet Top competitors: Status quo Key products: Calc, Returns, Certs,Cross-Border Key partners: Epicor, Infor, Microsoft,NetSuite, SageTAM based on 538k U.S. businesses with 20-99 employees and an Avalara ASP range of 1-5k plus 91k U.S. businesses with 100-499employees and an Avalara ASP range of 20-30k. Number of businesses based on 2016 U.S. census data. Support customers' omnichannelrequirements Sell ROI34

How we roll it upEmerging Small Business (ESB)What we’re doing to roll it up Estimated U.S. TAM: 5.3 millionbusinesses and 2bn; 10% penetrated Drive penetration through aggregators:marketplaces, eCommerce andfinancial partner platforms ASP range: 200-600 Top competitors: Status quo, TaxJar Launching targeted ESB returnsproduct Key products: Calc, Returns for SmallBusiness Increasing self-serve GTM motion Key partners: Shopify, BigCommerce,marketplaces, Intuit, XeroTAM based on 5.3M U.S. businesses with 1-19 employees and an Avalara ASP range of 200-600. Number of businesses based on2016 U.S. census data.35

How we roll it upEnterprise Estimated U.S. TAM: 20k businessesand 2bn; displacement marketWhat we’re doing to roll it up ASP range: 50k-150k Differentiate with multi-productcloud platform – calc, returns, certs,cross border, international Top competitors: Vertex, Sovos,Thomson Reuters Launching Advanced Rules andConsumer Use products Key products: Whole platform Consumer Use, Advanced Rules Deepening content and verticalexpertise Key partners: Oracle, SalesforceCommerce Cloud, API integrationTAM based on 19.7k U.S. businesses with 500 employees and an Avalara ASP range of 50k-150k. Number of businesses based on2016 U.S. census data.36

How we roll it upInternationalWhat we’re doing to roll it up Estimated TAM: Multiples of the U.S;largely greenfield Build Avalara brand as most trustedglobal provider for cross-border andcompliance Top competitors: Vertex, Sovos,Thomson Reuters, smaller local players Key products: Managed Return Service,VAT Reporting, Cross-Border, Calc (VATand U.S.), e-Invoicing Key partners: Focused on building outpartner moat Deliver unified portfolio to coverglobal and local compliance needs Extend thought leadership on legislativechanges via government relations Extend partner moat to regions37

1Bn andbeyondBuilding for scale &efficient growth1Leadership and bench strength —seen 1bn and beyond2Monetize multi-product platform3Build global scale and efficiencies4Increase partnership moat and monetizationwith focus on marketplace and eCommerce5Drive operating leverage —near-term gross margin emphasis38

Jay LeeChief Marketing OfficerBuilding effective andefficient global marketing