3 rapidly growing ASX tech shares to buy

These tech shares are growing rapidly…

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The tech sector is home to a number of companies growing at a rapid rate.

Three that have been standout performers recently are listed below. Here’s what you need to know about these growing tech shares:

Adore Beauty Group Limited (ASX: ABY)

The first tech share to consider is Australia’s leading online beauty retailer. Adore Beauty has been growing strongly over the last few years and continued this positive form in FY 2021. It delivered a 48% increase in revenue to $179.3 million and a 53% jump in EBITDA to $7.6 million. Driving this strong growth was an increase in repeat sales and a 39% lift in active customers to 818,000. The good news is that this is still a small slice of a beauty and personal care (BPC) market worth $11.2 billion and expected to grow at a 26% CAGR through to 2024.

UBS is a fan of the company. It currently has a buy rating and $6.00 price target on the company’s shares.

Bigtincan Holdings Ltd (ASX: BTH)

Another tech share to look at is Bigtincan. It is a fast-growing sales enablement platform provider. It was also on form in FY 2021, delivering a 48% increase in annualised recurring revenue (ARR) to $53.1 million. Pleasingly, management expects more of the same in FY 2022. Its has provided ARR guidance of $119 million. This is expected to be driven by organic growth and the benefits of the acquisition of Brainshark. It is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness.

Morgan Stanley is very positive on the company. It has an overweight rating and $2.10 price target on its shares.

Xero Limited (ASX: XRO)

A final ASX tech share that is rated as a buy is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses. As with the others, it has been growing strongly over the last few years. This has been underpinned by the shift to the cloud, acquisitions, and its international expansion. These same factors look set to drive further growth in the years to come. In addition, Xero’s growth should be supported by its burgeoning app ecosystem. The company recently introduced its App Store in the ANZ and UK markets, allowing it to earn royalties on third party apps that its subscribers use.

Goldman Sachs believes Xero has the potential to deliver strong revenue growth over multiple decades. For this reason, it has a buy rating and $165.00 price target on its shares.

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

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

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Motley Fool contributor 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 has recommended BIGTINCAN FPO and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and Xero. 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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