I think that the local share market is home to a good number of quality tech shares that are worthy of a spot in most portfolios.
Three of my favourites are listed below. Here's why I like them:
ELMO Software Ltd (ASX: ELO)
In FY 2017 this cloud-based talent management software solutions company smashed expectations with a full-year result well ahead of its prospectus forecasts. Pleasingly, this strong form has carried over into FY 2018. At the end of last month management advised that first-half cash receipts were up 39% on the prior corresponding period to $10.96 million. As a result, it has reaffirmed its FY 2018 guidance of SaaS revenue of $21.6 million and EBITDA of $2.7 million. If it delivers on this it will mean an impressive 125% increase on FY 2017's EBITDA.
Nextdc Ltd (ASX: NXT)
I think NEXTDC would be a great investment option for investors willing to hold onto its shares for the long-term. There's no doubt that demand for data storage is growing fast and I expect it to continue to do so for the foreseeable future as the shift to the cloud gathers pace. I think this puts NEXTDC and its high quality data centres in a great position to profit. While earnings growth may slow this year, it is worth remembering that this is due to costs related to the expansion of its network. I expect earnings growth will accelerate greatly in FY 2019.
Webjet Limited (ASX: WEB)
Due to the ever-increasing number of travel bookings being made online each year, I believe this leading online travel agent is well-positioned to deliver strong long-term earnings growth. The company recently advised that it aims to continue to grow its market share and is targeting annual business-to-consumer bookings growth of over 3x the market average and annual business-to-business bookings growth over 5x the market average over the next three years. I feel confident that Webjet will achieve this thanks to the shift to online booking and the strength of its brands and management team.
