3 ASX shares growing at a rapid rate

Pushpay Holdings Group Ltd (ASX:PPH) and these ASX shares are growing at a rapid rate. Here’s what you need to know about them…

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Are you interested in growth shares? Three to look closely at are listed below.

All three have been growing strongly in recent years and look well-placed for more of the same during the 2020s. Here’s what you need to know about these ASX growth shares:

Megaport Ltd (ASX: MP1)

The first ASX growth share to look at is Megaport. It is an elasticity connectivity and network services company. The company utilises software defined networking (SDN) to allow customers to rapidly connect their network to other services across the Megaport Network. This means that services can be directly controlled by customers via mobile devices, their computer, or its open API.

Demand has been strong, leading to Megaport growing at a rapid rate over the last few years. The good news is that this is continuing in FY 2021 thanks to the ongoing shift to the cloud. Last month it released its third quarter update and revealed an 8% quarter on quarter increase in monthly recurring revenue (MRR) to $6.8 million.

Pushpay Holdings Group Ltd (ASX: PPH)

Another growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. Pushpay has been growing at a rapid rate in recent years thanks to the accelerating digitisation of the church, the shift to a cashless society, and the overall quality of its offering.

This strong form continued in FY 2021, with Pushpay recently reporting another impressive full year result. For the 12 months ended 31 March, Pushpay delivered a 40% increase in operating revenue to US$179.1 million and a 133% increase in EBITDAF to US$58.9 million. This was well-ahead of its original guidance, which was upgraded three times during the year. Positively, management is forecasting further growth in FY 2022 and is planning to expand into a new market.

Temple & Webster Group Ltd (ASX: TPW)

A third ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer. Temple & Webster has been growing at a rapid rate in recent years but particularly during the pandemic. This was driven by the accelerating shift to online shopping.

The good news is that online furniture shopping is still in its infancy in comparison to both other areas of the retail market and other Western markets. This bodes well for the future, especially given Temple & Webster’s leadership position. Management is now investing heavily to take advantage of the shift and cement its position as the market leader.

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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 MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia has recommended MEGAPORT FPO, PUSHPAY FPO NZX, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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