One thing the Australian share market is not short of, is tech shares growing at a strong rate.
Two exciting tech shares which have continued to grow strongly in 2020 despite the pandemic are listed below. Here's what you need to know about them:
ELMO Software Ltd (ASX: ELO)
ELMO is a cloud-based human resources and payroll software company. Its software streamlines a range of processes such as employee administration, recruitment, remuneration, and payroll through a single a unified platform. ELMO currently has operations in both the ANZ and UK markets, which management estimates are worth $2.4 billion and $6.8 billion per year, respectively.
In respect to the latter, the company has just boosted its presence in the UK with the acquisition of UK-based Breathe for an initial payment of $32.4 million. Breathe is a fast-growing, scalable human resources platform for small businesses.
This acquisition led to ELMO increasing its FY 2021 annualised recurring revenue (ARR) guidance to be in the range of $72.5 million to $78.5 million. This is up from its previous guidance of $65 million to $70 million and represents strong growth on FY 2020's ARR of $55.1 million.
Whispir (ASX: WSP)
Another tech share which has been growing strongly in 2020 is Whispir. It is a leading workflow communications platform provider which allows organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
In FY 2020, Whispir posted a 25.5% increase in revenue to $39.1 million and ARR growth of 34% to $42.2 million. This compares to its prospectus forecast of $37.8 million and $42 million, respectively.
Pleasingly, its positive form has continued in FY 2021, with the company's ARR lifting to $43.7 million at the end of September. This is still only scratching at the surface of a workflow communications platform as a service market which management estimates could be worth US$8 billion per year by 2024.
