The Aussie tech sector is home to a growing number of exciting companies. Here are two ASX tech shares that I am watching closely right now. Both have seen very strong share prices rises in recent months.
Whispir Ltd (ASX: WSP)
Whispir is a software-as-a-service (SaaS) communications workflow platform provider. The company only recently listed on the ASX but has been operating for a number of years. It services a growing list of industries including: financial services, government, IT Telecoms and Media, healthcare, transport and logistics and mining.
It continues to grow strongly in its home Australian market with year-on-year growth of 22% during 1H FY 2020. Big name local clients now include: AGL, Telstra, Qantas, BHP and Foxtel.
Whispir also continues to expand strongly into Asia with 26% growth during 1H FY 2020. It is currently focusing on Singapore and Indonesia, and now has a new go-to-market strategy in place with leading Indonesian telco, Indosat Ooredoo. Whispir also has expansion plans for the Philippines and Thailand, and is rolling out services in the United States.
Like other SaaS companies, Whispir is a capital-light organisation, which means that its business is highly scaleable. Each additional customer flows through to its operating margin, which currently sits at attractive 62%.
As is the case with many emerging ASX tech shares, Whispir has yet to become profitable. However, based on its current growth trajectory, it looks well placed to achieve that goal in the not too distant future.
The Whispir share price has recently been on fire, up from $0.705 on 23 March, to now be trading at $3.33.
Redbubble Ltd (ASX: RBL)
Redbubble owns and operates leading global marketplaces for independent artists. Its two core marketplaces are Redbubble.com and TeePublic.com, which enable artists to sell their designs on a range of products. These include goods spanning from apparel and bags, to wall art and linen.
This ASX tech share continues to advance at a very strong pace and the coronavirus crisis definitely hasn't slowed down its growth story. In fact, the pandemic has actually led to an acceleration of Redbubble's growth.
Redbubble recently updated the market on its YTD performance to 22 June. For the fourth quarter so far, year-over-year marketplace revenue growth came in at a staggering 107%. While year to date marketplace revenue grew by 42%.
I remain excited by Redbubble's long term prospects, driven by the growing consumer trend towards an online shopping environment. The Redbubble share price has been on a steep upward trajectory since late March, increasing nearly 4-fold during that time.
Foolish takeaway
While still not quite in my buy zone just yet, both Whispir and Redbubble are two exciting small-cap ASX tech shares that have very promising business models. Recent strong revenue growth has seen their share prices soar higher over the past few months, despite the challenges of COVID-19. I will be watching them closely over the coming months to see if their growth stories continue.
