The technology sector may be down today as a whole following the news of U.S. President Donald Trump imposing tariffs on China, but one IPO is up–Avalara, a Seattle-based company that sells tax automation software, opened at $35 a share despite an initial offer price of $24.
The Avalara IPO successfully marks another cloud software IPO within the technology sector after Zuora and Ceridian both rocketed 40 percent when those IPOs were introduced in April. In addition, Dropbox, a cloud storage provider, debuted their IPO in March, which has jumped 70 percent since then.
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Avalara’s primary market segment includes tax automation software for enterprises like Oracle, Workday and Stripe. Based on SEC filings for the IPO, Avalara performs 6 billon transactions across 208 countries and also boasts a customer list that includes Pinterest, Fandango and the New York Times.
“In a digital world the concept of doing sales tax manually is really absurd,” said Avalara CEO Scott McFarlane. “And we saw that and we knew that we were swimming with the tide for those 14 years.”
Despite the success of the Avalara IPO, it wasn’t enough to boost technology ETFs that were weighed down by the broad market impact of the latest tariffs by the Trump Administration. Three of the largest in terms of total assets were all down–Invesco QQQ Trust (NASDAQ: QQQ) was down 0.44%, Technology Select Sector SPDRÂ ETF (NYSEArca: XLK) was down 0.58%, and Vanguard Information Technology ETF (NYSEArca: VGT) was down 0.57%.
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