I'm a big fan of growth shares and feel very lucky to have such a large number of quality ones to choose from on the Australian share market.
Three of my favourites right now are listed below. Here's why I think they could be great options for growth investors:
Altium Limited (ASX: ALU)
One of my favourite growth shares on the Australian market is this electronic design software company. Due to the company's exposure to an Internet of Things market which is growing at an explosive rate, demand for its award-winning products and services has been increasing at a very strong rate. This recently led to Altium posting half year revenue growth of 26% to US$78 million and profit after tax growth of 58% to $23.4 million. Pleasingly, management believes the company still has a long runway for growth and has provided an aspirational revenue target of US$500 million by 2025. This is a 150% increase on the company's revenue target for FY 2020.
Appen Ltd (ASX: APX)
Another quality growth share to consider is Appen. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. It was one of the highlights of earnings season last month when it posted a 153% increase in underlying EBITDA to $71.3 million. Whilst some of this growth was generated by the acquisition of the Leapforce business, the majority of it came from the increasing demand for quality training data from the accelerating AI market. Given the massive importance of AI for many businesses, I think Appen is well-positioned to continue growing its bottom line at a strong rate for a number of years to come.
Webjet Limited (ASX: WEB)
Another company which delivered a strong result last month was Webjet. The online travel agent proved the doubters wrong when it posted a 33% lift in half year revenue to $175.3 million and a 42% jump in EBITDA to $58 million. The key driver of this growth was the company's WebBeds (B2B) segment. From its continuing operations, the segment grew bookings by 50% and EBITDA by a massive 136% to $30.1 million. Pleasingly, management believes the segment can continue to its strong growth for some time to come thanks to its global growth opportunities.
