ASX tech shares are leading the share market comeback. Since its lowest point of the March crash, the S&P/ASX All Technology Index (ASX: XTX) has now risen by more than 90%. By comparison, the S&P/ASX 200 Index (INDEXASX: XJO) is up just 33% over the same period. Investors are devouring the technology sector as digital connections become more important than ever. With the rise of remote working and restrictions on travel, consumers and business have become increasingly reliant on technology. On that note, let's take a look at two ASX technology shares that I think should be on your radar.
2 ASX tech shares to watch
Megaport Ltd (ASX: MP1)
Megaport is a leader in the network-as-a-service space. The company allows customers to connect to cloud services and data centres almost instantly by providing end-to-end network connections through data centres located across the globe. Megaport is partnered with Microsoft Azure, AWS, Google Cloud, IBM, Alibaba, and Oracle, allowing users to build connections to world-class cloud services.
The Megaport share price dipped to a low of $6.74 in March but has since gained more than 100% to currently trade at $13.72. The company is seeing high growth rates across key financial metrics. Revenue increased 10% quarter-on-quarter to $15.19 million in March 2020, while monthly recurring revenue increased 19% to $5.4 million. Customer numbers grew to 1,777 at the end of March up from 1,679 at the end of December.
I believe the surge in global demand for cloud services and connectivity solutions will continue to provide powerful tailwinds for this ASX tech share. Furthermore, the company plans to expand its sales team and go-to-market activities in a quest for greater market share.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara provides breast imaging analytics that improve the early detection of breast cancer. Based in New Zealand, Volpara is a research, development and manufacturing company. Its software platform originated from a breakthrough in research surrounding medical physics and artificial intelligence at Oxford University. The company's proprietary medical imaging technology underpins personalised, high quality breast cancer screening.
The Volpara share price has recovered from its March low of 81 cents with shares currently trading at $1.49. Nonetheless, the company's shares are yet to regain the highs of over $2 seen in late 2019. In its FY20 ending 31 March, Volpara achieved significant growth in annual recurring revenue (ARR) and market share. ARR grew 182% to reach $18 million while the company reported 27.1% market share in North America. Although not yet profitable, Volpara is expanding, having acquired Seattle-based MRS Systems Inc last year which broadened its offering to include lung cancer testing.
Foolish takeaway
ASX tech shares are dominating the post-coronavirus market comeback. I believe these two tech shares show promising potential meaning they should be on your radar today.
