Australia's tech sector is tiny and relatively immature compared to the much larger US tech sector market. However, Australia has some vibrant and fast-growing techs listed on the ASX including Redbubble Ltd (ASX: RBL), Nearmap Ltd (ASX: NEA), and Sezzle Inc (ASX: SZL) shares.
These companies have seen strong share price gains over the past few weeks – up to a 50% increase, in fact.
Nearmap shares
The share price of fast-growing aerial imagery and specialist location data company, Nearmap has grown strongly over the past few months. Over the past 4 weeks alone, this ASX tech share has seen its share price increase by 32.5%.
In a May market update, Nearmap noted that it is continuing to grow its subscriber base. This is particularly the case in the North American market. The company's subscription revenue per subscriber also continues to rise. This trend is leading to improving overall margins.
Nearmap has also recently launched its new artificial intelligence (AI) product to subscribers in Australia and North America.
Redbubble shares
Another ASX tech share to watch out for is Redbubble. It owns and operates a leading global marketplace for independent artists. Its share price has risen by an impressive 36.8% over the past 4 weeks. This follows on from a share price rally that began in late March.
In a market update back in early April, Redbubble revealed that it believes it is well placed to endure the coronavirus outbreak. In a further market update in late April, Redbubble revealed that its marketplace revenue totalled $246 million for the year-to-date. That amounted to an impressive year-on-year growth of 25%. Redbubble is benefiting from the trend of consumers moving to the online environment for their shopping experience.
Sezzle shares
Speaking of another company benefitting from consumers shopping online, Sezzle is a buy-now-pay-later fintech provider listed on the ASX but based in the US. Its main competitors include Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P).
Sezzle shares have grown by 50.2% in the past 4 weeks. In addition, they've grown by over 500% since late March.
During the quarter containing March, underlying merchant sales (UMS) surged 321% year-on-year. April was a particularly strong month for Sezzle. UMS came in at $57.9 million, a monthly record, despite the challenge of the coronavirus pandemic.
Sezzle mainly targets the Gen Z and millennial consumer demographics. Both these large and fast-growing age segments are very tech-savvy. Therefore, this type of online lending appeals to them.
In addition, Sezzle added 114.4K active customers in April. In further positive news, merchant fees remained resilient during that month.
Top recent performing categories for Sezzle include leisure, outdoor, electronics, sport and medical.
