4 ASX Technology Shares You Need to Know About

There’s a lot to like about technology shares.

Many businesses in the tech space are carving out sustainable competitive advantages in their respective fields, while others are creating entirely new industries which could quite literally change the way in which humans behave and interact.

Of course, many of the world’s top and most exciting technology shares are listed on international share markets, limiting the ability of many local investors from owning them directly.

Although there is the option of investing in certain exchange traded funds, or ETFs, to gain exposure to businesses such as Apple or Alphabet (the owner of Google), there are also a number of very compelling technology businesses right here in Australia that you can buy today.

Here are four of those businesses that need your attention…

XERO FPO NZX (ASX: XRO) provides accounting software via its Software-as-a-Service (SaaS) platform. Although it is thus far unprofitable, this is only due to its heavy investment in development and research as well as marketing, all of which is helping it to build its customer base rapidly.

Better yet, Xero enjoys the benefit of high switching costs which keeps most customers on its user base for years, helping to generate a very reliable recurring revenue stream. The shares mightn’t seem cheap, but if the business can continue growing over the coming years at such impressive rates, investors should be well rewarded.

Catapult Group International Ltd (ASX: CAT) provides the hardware and software used by sporting teams and athletes around the world to track on and off-field performance, as well as assessing the risk of injuries. Its products have received great reviews from some of the biggest clubs in world sport, with its subscriber count also growing strongly. Of course, there is the risk of a big, cashed-up competitor trying to pry into this potentially lucrative space, and the shares aren’t cheap, but there is also potential for plenty more growth.

iSentia Group Ltd (ASX: ISD) is a leading media intelligence group which “captures, enriches and interprets data” (according to its 2014 prospectus) from thousands of media outlets and sources for its many clients. It’s a crucial service for most businesses to have if they want to know what is being said about them, when it is being said and to whom – particularly when it comes to damage control. Being a crucial service, iSentia also enjoys a sticky customer base with the potential to expand significantly throughout Asia.

1-Page Ltd (ASX: 1PG) is perhaps the most speculative company to make this list. Its shares are not cheap (even despite their huge falls in recent months) and the company is still very much in its infancy. However, the company is currently striving to revolutionise the way in which companies hire and promote talent. Via its SaaS platform, 1-Page claims it can save clients huge amounts of time and money, while also improving their staff retention rates. It still generates very little in the way of revenue and cash flows from operations, making it very risky, but it could also be ewarding if everything goes according to plan.

These are just a small number of the promising technology businesses that are currently trading on the ASX, with many others also trading at very attractive prices. Indeed, one ASX-listed business even stands to benefit from the technology that could REPLACE the internet -- insiders are even calling it one of the biggest new markets in the history of modern business.

This hush-hush industry is poised to deliver huge growth over the coming years, and our top analysts have highlighted the one ASX stock that stands to benefit right alongside it. Better yet, you can buy shares in this business today...

Simply click here to learn its name, and we'll send you your FREE research report.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alphabet (A shares), Alphabet (C shares), and Apple. Motley Fool contributor Ryan Newman owns shares of 1-Page Ltd, iSentia Group Ltd, and Xero. The Motley Fool Australia owns shares of Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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