These were the best performing ASX tech shares in October 

Audinate Group Ltd (ASX: AD8) and Praemium Ltd (ASX: PPS) delivered the best returns for ASX tech shares in October. We take a closer look.

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October proved to be a volatile month for the S&P/ASX 200 Index (ASX: XJO) and All Ordinaries Index (ASX: XAO) with both indices giving up most of their gains. Many ASX 200 tech shares, however, were able to outperform the market, partly due to positive quarterly business updates. Here are some of the top ASX 200 tech share performers in October. 

Audinate Group Ltd (ASX: AD8)

The Audinate share price is eyeing its pre-COVID levels following the company's capital raising in July and positive October AGM. Audinate believes it is driving transformation in the audio visual industry as networked digital connectivity is replacing traditional, point-to-point analogue cabling and software-based systems are replacing hardware systems. Audinate values the digital media networking market at more than $1 billion in size and reports its products as having more than eight times the adoption rate of their closest competitors. 

Audinate's presentation provided the market with a much needed 1Q21 trading update. Its revenue chart points to a gradual recovery with August-September revenues returning to pre-COVID levels. The company's unaudited revenue for 1Q21 amounted to USD$5.2 million and unaudited earnings before interest, tax, depreciation and amortisation (EBITDA) of AUD$0.3 million. With the business largely getting back on track, the Audinate share price delivered an almost 24% return in October. 

Praemium Ltd (ASX: PPS

Praemium was a standout ASX 200 tech share performer after the company's strong quarterly update saw its share price surge more than 22% in October. The quarterly highlighted a surge in Praemium's Australian platform funds under management (FUA) to $15 billion with the inclusion of its Powerwrap acquisition. Also reported was a record FUA level of $3.5 billion for its international platform following an increase of 7% over the quarter as well as FUA for its Virtual Managed Accounts of $12.8 billion, an increase of 12% for the quarter. 

The market was pleased with the company's results and continued investment into platform enhancements. However, as the ASX 200 started to give back its gains in the latter half of October, so did the Praemium share price. Praemium finished October with a return of around 22% from a peak of almost 40%. 

Afterpay Ltd (ASX: APT)

The Afterpay share price is the gift that keeps on giving, delivering a 20.88% return in October. The company announced a first of its kind partnership with Westpac Banking Corp (ASX: WBC) to offer savings accounts and cash flow tools to customers. This is another milestone in building out Afterpay's financial service ecosystem and potentially taps into Westpac's rich customer data.

Afterpay also announced its highly anticipated quarterly update. Many big brokers were impressed with its figures and business updates. Macquarie Group Ltd (ASX: MQG) raised its Afterpay share price target from $90.00 to $97.50 and Morgan Stanley (NYSE: MS) retained its overweight rating and price target of $115. 

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO and Praemium Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended AUDINATEGL FPO and Praemium Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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