ASX tech shares have proved to be among the most resilient stocks to own throughout the COVID-19 global pandemic. There has of course been the much publicised surge in the Afterpay Ltd (ASX: APT) share price, buoyed by the consumer trend towards online shopping during the relentless boredom of lockdowns. But data warehouse operator NextDC Ltd (ASX: NXT) has also seen a strong uptick in demand as more corporate clients transitioned to remote working arrangements. And it was only a couple of weeks ago that the share price of accounting software developer Xero Limited (ASX: XRO) breached the $100 mark for the first time in its history.
That’s not to say the outlook is entirely rosy. Extended lockdowns in Victoria, the announcement of a national recession, and continuing geopolitical tensions in our region are not great for business. But if this pandemic has taught us anything, it’s that our reliance on technology is – if anything – exacerbated by a crisis.
Additionally, the pandemic has changed how many of us work, in ways that are potentially long lasting – and possibly even permanent. It means that many ASX tech shares that support remote, agile and adaptive working arrangements have seen big upticks in demand.
So, with that in mind, here are three under-the-radar innovative companies that could grow into tomorrow’s major ASX tech shares.
3 ASX tech shares poised for growth
Whispir Ltd (ASX: WSP)
Whispir develops integrated, cloud-based communications software for corporate clients. It allows users to manage, coordinate and automate internal and external communications, and provides templates clients can use for marketing and publicity campaigns. Its centralised platform means that companies can oversee workflows, increase efficiencies, and more actively measure results.
Whispir’s FY20 results beat its own prospectus forecast, despite the headwinds generated by COVID-19. Annualised recurring revenues (ARR) jumped 34% year on year to $42.2 million, driven by higher than anticipated net new customer numbers. This ASX tech share also ended the year with a net cash balance of $15.2 million.
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan develops software to help streamline and automate sales and marketing functions for its business clients. The company’s platform provides a centralised, integrated software solution that is designed to support businesses throughout their entire sales and marketing lifecycle, from onboarding and training new staff, to engaging new customers and providing accurate reporting.
Its FY20 results were also strong, with ARR up 53% to $35.8 million. It delivered at the top end of guidance, and also made a number of strategic acquisitions during the year. Bigtincan expects another solid year of growth in FY21, forecasting ARR growth in the range of 37% and 48% to between $49 million and $53 million.
Megaport Ltd (ASX: MP1)
Megaport is another innovative tech share helping businesses adapt to new COVID-19 remote working arrangements. It offers customisable, ‘on demand’ network services to corporate clients, giving companies the flexibility to manage their bandwidth usage. For example, businesses can scale up their bandwidth when transferring large amounts of data for major projects, and then reduce consumption during off-peak times. This allows businesses to be more efficient with their data usage and cut their overall costs.
FY20 was a bumper year for this ASX tech share. Revenues increased by 66% year on year to $58 million, customer numbers were up by 24% to 1,842, and the company ended the year with a $166.9 million cash position thanks to two successful capital raisings. And with international expansions continuing across Asia Pacific, Europe and North America, Megaport could be one of the top growth companies to watch over the next few years.