2 top ASX growth shares that might be worth buying

Volpara is one of the top ASX growth shares to consider.

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Investors may be interested in some ASX growth shares that have been delivering underlying growth for a while now.

Businesses that are achieving good revenue growth may be able to grow profit nicely over the coming years. Profit can be a key driver of share price growth over time.

That’s why these two leading ASX growth shares could be quality ideas to think about:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a healthcare technology business that provides software relating to screening for breast cancer and screening for lung cancer.

In the first quarter of FY22, Volpara reported that its subscription-based cash receipts were up around 38% to NZ$6.1 million. In constant currency terms, this was an increase of 60%.

Volpara is seeing steady growth in multiple areas. For example, its coverage of US women being screened was 33%, up from the prior quarter of 32%. Not only is the market share of women increasing, but the average revenue per user (ARPU) is also rising.

ARPU in that FY22 first quarter was US$1.42, an increase from US$1.40 at the end of the fourth quarter of FY21. The average ARPU for the first quarter was US$1.55. ARPU of up to US$5.87 was achieved at some sites.

Volpara’s client loyalty remains high, with software as a service (SaaS) churn continuing to remain low.

The ASX growth share has a very high gross profit margin – it was 91% in FY21. This means that a lot of the new revenue can translate into gross profit.

The acquisition of CRA Health and expansion in the US lung cancer screening market are both promising. Volpara Lung currently covers around 8% of US lung cancer screening.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Over six months, this exchange-traded fund (ETF) has fallen 14%. But that gives investors the opportunity to look at it at a lower valuation.

The purpose of this investment is to give exposure to 50 of the largest Asian technology businesses outside of Japan in a single portfolio.

BetaShares says that:

Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

The ETF provider also points out that this investment can be used as a complement for investors to get Asian tech exposure alongside the US

So what’s actually in the portfolio? There are six positions with a weighting of more than 5%: Taiwan Semiconductor Manufacturing (11.4%), Samsung Electronics (10%), Tencent (9.8%), Alibaba (8.7%), Meituan (6.6%) and Sea (5.7%). The other top 10 positions all have a weighting of at least 3%: JD.com (4.9%), Infosys (4.7%), Pinduoduo (4.4%) and Netease (3%).

These businesses come from a range of different sectors. E-commerce, semiconductors, gaming, technology hardware, entertainment, IT consulting and so on are all represented.

It has an annual management fee of 0.67%. Despite that fee, since inception to August 2018, it had produced an average return per annum of almost 23%.

Should you invest $1,000 in Volpara right now?

Before you consider Volpara, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Volpara wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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 VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and VOLPARA FPO NZ. 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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