While Australia’s tech sector may pale in comparison to its U.S. equivalent, that doesn’t mean there aren’t any quality tech shares with global ambitions on our market.
Three tech shares which fit the bill are listed below. Here’s why I like them:
Aconex Ltd (ASX: ACX)
I believe this cloud collaboration software-as-a-service company could be a great option for patient investors willing to make a long-term buy and hold investment. Thanks to the quality of its product and the efficiencies it offers users in the construction industry, I believe demand for its product could increase significantly in the future and even put it in a position to outperform its medium-term guidance. Especially given the expected uptick in construction activities in the Americas following recent disasters and Trump’s proposed infrastructure upgrades.
Altium Limited (ASX: ALU)
Whether it be cars, fridges, or televisions, more and more everyday consumer goods now come with internet connectivity. As these devices will generally require a printed circuit board (PCB) inside them to accomplish this, I expect demand for Altium’s PCB design software will increase substantially over the next decade. The company recently confirmed it is on course to deliver on its target of US$200 million in revenue and an EBITDA margin of 35% by FY 2020. This compares to FY 2017 where it generated revenue of US$111 million and had an EBITDA margin of 30%.
Big Un Ltd (ASX: BIG)
This video technology company’s shares may be up almost 1,800% this year, but I still believe they have the potential to climb even higher in 2018 if its impressive performance continues. Big Un recently advised that cash receipts in the second-quarter of FY 2018 are expected to be up 398% on the prior corresponding period to $20 million. Based on its current growth rate and wide margins, I estimate Big Un could deliver a full-year cash profit of approximately $30 million.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ACONEX FPO and Altium. 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.