There are a few very interesting ASX growth shares that could be intriguing to look at right now.
Some businesses are generating a lot of revenue growth which may help shareholder returns over time:
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is an ASX-listed healthcare technology company. It just reported its FY21 half-year result. The business has an integrated breast health platform that assists in the delivery of personalised patient care.
Its market share of women in the US who have at least one Volpara product used on their screening continues to increase. In FY19 it was below 10% and it has now reached 32%, partly thanks to acquisitions.
Volpara’s gross profit margin continues to increase. In FY18 the gross margin was below 80% and in FY21 it has increased to 91%.
The group average revenue per user (ARPU) has continued to increase. In the HY20 result the ARPU was below US$1 and in FY21 it increased to US$1.40.
The ASX growth share showed improvement across a number of important metrics.
Subscription revenue soared 99% to NZ$18.1 million and it’s expecting FY22 revenue of between NZ$25 million to NZ$26 million.
Volara CEO and chief scientist Dr Ralph Highnam spoke of the progress and focus of the business to build for the future:
FY21 was an excellent year for Volpara. We successfully conducted our second acquisition, of Boston-based breast cancer risk company CRA Health LLC, but we’ve also done a huge amount of work behind the scenes to make the company more scalable: digital marketing through to smarter use of our cloud services through to easier-to-deploy software systems into clinics. It’s great to see that work start to come through in the numbers as we see gross margin moving upwards and the net loss coming down, even as we continue to grow at a strong pace.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
This is exchange-traded fund (ETF) is an ASX growth share that only invests in businesses that have strong competitive advantages that are trading at attractive prices.
The portfolio regularly changes. At the moment the positions that each account for more than 2.5% of the portfolio are: Wells Fargo, Cheniere Energy, Alphabet, Northrop Grumman, Philip Morris, General Dynamics, Berkshire Hathaway, Raytheon Technologies, Yum! Brands and Altria Group.
A business only makes it into the portfolio if the analysts at Morningstar believe the business is trading at an attractive price compared to Morningstar’s estimate of fair value. It’s an active stock selection process, but the annual management fee is 0.49%.
Whilst all of the shares in the portfolio are listed in the US, many of them have global underlying earnings. There is diversification across sectors with 20.4% allocated to health care, 17% to IT, 15.2% to industrials, 12.9% to financials, 11% to consumer staples, 7.2% to communication services, 6.2% to consumer discretionary and so on.
The returns have beaten the S&P 500 over the last five years, though that could reverse over the next five. The VanEck Vectors Morningstar Wide Moat ETF has produced an average return per annum of 18.6% over the last five years compared to the S&P 500’s average return of 16.5%.