While the Australian information technology sector may not be the biggest in the world, it is still home to many exciting companies with explosive growth prospects.
Three of my favourites in the sector right now are listed below. Here's why I like them:
Appen Ltd (ASX: APX)
Appen is a machine learning and artificial intelligence dataset provider which counts some of the world's largest tech companies as customers. The company has been experiencing heightened demand for its services in the social media and search categories of late, leading to a significant outperformance in FY 2017. The good news is that with demand increasing and its acquisition of Leapforce expected to be highly accretive to earnings, management has forecast EBITDA growth in excess of 62% in FY 2018.
Bravura Solutions Ltd (ASX: BVS)
I think that this leading provider of software solutions for the wealth management, life insurance, and funds administration industries has a bright future ahead of it. This is largely down to the company's Sonata web-enabled administration solution. Demand for Sonata has been growing at an impressive rate and shows no signs of slowing. In the first half of FY 2018 Sonata revenue grew 35% to $56.7 million. This means that it now accounts for 55% of the company's overall revenue.
Nextdc Ltd (ASX: NXT)
During the last quarter many of the world's biggest tech companies reported exceptionally strong growth from their cloud businesses. I believe this will continue to be the case for a number of years to come thanks to the shift to cloud computing. This is great news for this leading data centre operator which is likely to see increasing demand for its services. Especially given how some of its data centres have the highest quality ranking in the industry.
