Thanks to the release of stellar half and full year results from Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) last month, their respective shares have rocketed higher.
While I still think they could be great buy and hold investments, they do look about fair value now in my opinion.
Whereas I think that the two tech shares listed below could still climb significantly from here. Here's why I like them:
Bravura Solutions Ltd (ASX: BVS)
I was impressed with this fast-growing fintech company's recent half-year result and believe it demonstrated why it could have a very bright future ahead of it. Although first-half revenue grew only 10% to $102.9 million and EBITDA just 2% to $18.5 million, it is important to understand that this was due to the loss of a major client in the Funds Administration segment.
The star of the half was its Wealth Management segment and its increasingly popular Sonata product. The wealth management solution grew revenues by 35% on the prior corresponding period, meaning it now accounts for 55% of total revenue, up from 45% a year earlier. This strong demand led to management upgrading its full-year underlying earnings per share growth guidance to the high-teens. I think its shares are great value based on this growth forecast and would class Bravura as a buy.
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based talent management software solutions company that has been kicking goals since listing on the Australian share market last year. Strong demand for its software solutions has allowed the company to vastly outperform expectations and smash its prospectus forecasts. This was evident last week when ELMO posted half-year EBITDA of $1.2 million on revenues of $10.6 million. This was an impressive 151% and 36% increase, respectively, on the prior corresponding period.
Pleasingly, this strong first-half and the acquisition of Pivot Software led to management upgrading its full-year outlook significantly. It now expects to achieve total revenue of $31.2 million and EBITDA of $5.7 million in FY 2018. I think ELMO would be a great buy.
