Although headwinds associated with the pandemic have stifled the growth of a good number of companies, some have continued their strong form largely unabated.
Two ASX tech shares that are continuing to grow rapidly are listed below. Here’s why they could be worth a closer look:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a provider of an artificial intelligence-powered sales enablement automation platform.
The company notes that its platform delivers a better customer experience, empowering sales and marketing teams to drive better business results.
A testament to the quality of its platform is its customer base. A number of the largest companies in the world are using Bigtincan Hub. This includes 7 of the top 10 companies on the Fortune 500 and Australia and New Zealand Banking GrpLtd (ASX: ANZ).
Strong demand led to the company reporting further strong growth with its half year results in February. At the end of December, its annualised recurring revenue (ARR) had reached $48.4 million. This was a 50% increase over the prior corresponding period. Driving this growth was a 42.9% increase in organic ARR and $8.4 million from acquisitions.
Morgan Stanley was happy with its update. In response to it, the broker put an overweight rating and $1.40 price target on its shares.
Megaport Ltd (ASX: MP1)
Megaport is another company that has been growing rapidly despite the pandemic. The provider of elastic interconnection services across data centres reported Monthly Recurring Revenue (MRR) of $6.3 million at the end of the first half.
This was a 37% increase on the prior corresponding period and annualises to $75.6 million. This compares to FY 2020’s revenue of $58 million.
Management advised that this was driven by a combination of customer and ports growth and an expanding footprint. At the end of December, the company had 2,043 customers (up 11%) across 716 Enabled Data Centres (up 7%) in 130 cities.
This result went down well with Goldman Sachs. Following its release, the broker put a buy rating and $15.55 price target on its shares.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO and MEGAPORT FPO. The Motley Fool Australia has recommended BIGTINCAN FPO and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.