2 ASX shares that could be worth looking at this weekend

MNF and Tyro are interesting businesses that could be good to learn about.

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There are plenty of ASX shares that are growing their business. A few might be worth investigating for their potential long-term growth.

Businesses that are smaller may have the potential to grow more than blue chips because they’re starting from a smaller level.

Here are two to think about:

MNF Group Ltd (ASX: MNF)

MNF describes itself as a communication software company headquartered in Sydney Australia. Its platform enables companies like Zoom, Google and Twilio to launch and scale communication services without constraints. It offers a number of different communication options for businesses to take advantage of.

The MNF share price has fallen by around 15% since 23 April 2021. That’s despite the business reporting growth.

In the FY21 half-year result, it saw phone numbers on the network increase by 24% year on year to 5.1 million. This was due to new orders from existing wholesale customers and provides management confidence in future growth as each new number provides a potential future revenue stream.

The growth in phone numbers supported a 15% increase in recurring revenue to $55.6 million and a 20% increase in recurring gross margin to $33.4 million. Underlying profit went up 30% to $8.4 million. It’s experiencing rising profit margins.

Looking ahead to future growth, management said that the expansion into Singapore is progressing well. It has commenced technical trials with three major global customers. Those trials are the final step before going live in the Singaporean market which it expects to occur later this financial year.

The ASX share wants to continue growing its market share and expanding into the Asia Pacific region. The Singapore progress is giving it confidence to expand to other Asian countries.

Tyro Payments Ltd (ASX: TYR)

Tyro is a business that provides payment solutions and banking products for businesses. Its technology allows businesses to accept credit and debit card payments with its point of sale terminals. It’s focused on an in-store solution, but it has recently expanded into e-commerce.

Despite all of the impacts of COVID-19, the business reported growth in the FY21 half-year result. It saw merchant numbers increase 13% to 36,720 and 10% growth of transactions processed to $12.1 billion.

The banking side of the business is growing too – total merchant deposits increased from $39.7 million to $104 million.

Half-year earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 464% to $8.5 million.

Other parts of the business are also showing promise. E-commerce transactions grew from a small base, up 376% to $14.8 million. The telehealth payment solution saw transaction growth of 86% to $178.6 million. Tyro also recently announced it had completed the acquisition of health fintech Medipass Solutions.

In the last few months, Tyro is seeing a lot of year on year transaction growth compared to the COVID-19 period. April transaction value was up 147%, with May year on year growth was more than 80%.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MNF Group Limited and Tyro Payments. The Motley Fool Australia owns shares of and has recommended MNF Group Limited. 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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