If you're interested in making long term investments in tech shares, then you might want to check out the shares listed below.
All three have high quality products with long runways for growth. Here's why they are worth watching closely:
Nitro Software Ltd (ASX: NTO)
The first ASX tech share to look at is Nitro Software. Its Nitro Productivity Suite is driving digital transformation in businesses around the world across multiple industries. Demand for the solution, which provides integrated PDF productivity and electronic signature tools, has been growing strongly over the last few years. This underpinned a 64% increase in annualised recurring revenue (ARR) to $27.7 million in FY 2020. Positively, similarly strong growth is expected in FY 2021. Management is guiding to ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.
Pushpay Holdings Group Ltd (ASX: PPH)
Another tech share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. As with Nitro, demand for its offering has been growing strongly. This is being driven by the accelerating digitisation of the church and the shift to a cashless society. This strong demand led to Pushpay recently reporting a 40% increase in operating revenue to US$179.1 million and a 133% increase in EBITDAF to US$58.9 million for FY 2021. Looking ahead, management is forecasting further growth in FY 2022 and is planning to expand into a new market.
Whispir Ltd (ASX: WSP)
A final tech share to look at is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. It counts a growing number of blue chips as customers. These include AGL Energy Limited (ASX: AGL), BP, ING, and KPMG to name just a few. Whispir is currently generating ARR of $50.3 million, which is just a fraction of its total addressable market of US$4.7 billion in just the United States.
