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3 ASX growth shares I’d buy before the end of October

The ASX is looking at a strong open after breakthrough US–China trade talks. Here are 3 strong ASX 200 tech shares that you could add to your portfolio to capitalise on the bullish markets.

1. Dubber Corp Ltd (ASX: DUB) 

Dubber is an emerging tech play that provides a software-as-a-service for telecommunications carriers. Its software aims to disrupt the billion dollar call recording industry, which traditionally has a fixed capacity with expensive capital arrangements and lengthy deployment.

Dubber’s cloud call recording software has zero capital expenditure, unlimited scale, unlimited storage and rapid deployment. Its industry-leading position has seen it deliver outstanding growth metrics in FY19. Operating revenue increased by 269%, its user base increased by 222% while its telecommunications provider client base increased by 179%. Dubber has some key clients including names such as AT&T and Spark NZ

The company is in a strong position to consolidate itself as a platform of choice for global Tier 1 carriers, while displaying further innovation in mobile network call recording and voice AI. It had a cash position of $19.6 million at 30 June, which will continue to fuel the businesses growth trajectory. 

2. Megaport Ltd (ASX: MP1)

Megaport is a leading network as a service (NaaS) that allows its customer to access systems such as Microsoft Azure, Google Cloud, Amazon Web Services and Oracle. The Enterprise Cloud Service sector is in high demand. Global research advisory firm Gartner expects total spend to be within the $250 billion range for 2020, up from $214 billion in 2019. Megaport is also positioning itself with a unique connecting model that has benefits such as paying for what you use, rapid implementation, flexible terms and access to all service providers. 

In FY19, the company saw its monthly recurring revenue increase by 82% to $3.6 million while its customer base increased by 44% and installed data centre locations grew by 36%. The Megaport share price has found an area of consolidation around the $9 mark, and while the share price is already up an outstanding 140% this year, it could be ready to have a crack at $10. 

3. Rhipe Ltd (ASX: RHP)

Rhipe sells wholesale subscription software licenses to a growing number of IT service providers in the Asia Pacific region. It works with world leading software vendors such as Microsoft, VMware and Citrix, as well as providing additional consulting and support services.

The company estimates that FY20 will deliver approximately $16 million in operating profit, excluding any changes in market conditions or major expansion initiatives such as geographical or vendor expansion opportunities. This estimate would represent a 25% increase on FY19 operating profit. 

Its growth estimates excludes the company’s current joint venture in establishing Rhipe Japan. Rhipe will work with Japan Business Systems (JBS), which has approximately 2,200 employees across 12 offices in Japan, USA, Mexico and Asia Pacific. Depending on the success of its Japanese JV, it could see stronger than expected growth in FY20.

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Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Scott Phillips.

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Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

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