If you're looking to add tech shares to your portfolio in September, then I would suggest you consider the ones listed below.
I believe both of these ASX tech shares have the potential to generate very strong returns for investors over the next decade. Here's why I would buy them:
Appen Ltd (ASX: APX)
Appen is the leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI). It prepares the data for the models of some of the world's biggest tech companies. This includes the likes of Amazon, Apple, Microsoft, and Facebook.
Demand for these services is expected to grow strongly over the next decade as companies invest heavily in AI. This bodes well for Appen given its leadership position in the industry thanks to its million-strong team of crowd-sourced workers. Overall, I believe it is well-positioned to deliver strong earnings growth over the next decade and beyond.
Pushpay Holdings Group Ltd (ASX: PPH)
Pushpay is a donor management platform provider for the faith sector. It has been a very impressive performer in recent years and particularly in FY 2020 when it reported a 33% increase in revenue to US$127.5 million. This was driven by a 39% increase in total processing volume to US$5 billion, a 42% lift in customer numbers to 10,896, and flat average revenue per user of US$1,317 per month.
But perhaps most impressive was the operating leverage it achieved during the year. Pushpay delivered a whopping 1,506% increase in earnings before interest, tax, depreciation, amortisation and foreign currency gains/losses (EBITDAF) to US$25.1 million. The good news is that management is expecting another strong year in FY 2021. It has provided guidance for the doubling of its EBITDAF. Despite this growth, Pushpay is still only scratching at the surface of a niche but lucrative market opportunity. This gives it a long runway for growth and could make the Pushpay share price a long term market beater.
