2 ASX shares delivering rapid growth

Cettire and Pointsbet are both growing very quickly.

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The word growth with bles arrows shooting up above it, indicating a share price movement for ASX growth stocks

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There are some ASX shares that are growing in size very quickly as they deliver rapid revenue growth.

S&P/ASX 200 Index (ASX: XJO) blue chips are typically businesses that are experiencing slower growth than they used to because of how large they have become.

That’s not the case with the below ASX shares, which are increasing revenue at a triple digit rate:

Pointsbet Holdings Ltd (ASX: PBH)

Pointsbet is a corporate bookmaker with operations in Australia and the US. The company says it has developed a scalable, cloud-based wagering platform through which it offers its clients innovative sports and racing wagering products. Its offering includes fixed odds sports, fixed odds racing, ‘pointsbetting’ and iGaming.

The company is focused on growth in the US with numerous agreements with US sports teams and steady expansion across different states. It also has an agreement with the broadcaster NBC. One of the latest agreements was with Austin FC from Major League Soccer, where Pointsbet was appointed as the exclusive sportsbook partner. Under the market access agreement, which is contingent on enabling legislation, Pointsbet is appointed the venue’s exclusive partner for sports betting operations in Texas.

The rapidly growing ASX share recently did a capital raising which aimed to raise around $400 million to provide funding to support North American marketing and client acquisition, technology and product development, US market access and government licensing fees, continued investment in talent and scale of operations, and balance sheet flexibility.

In FY21, the business saw its total turnover increase 228% to $3.78 billion, with US turnover rising 458% to $1.79 billion. Its total net win increased 154% to $208.5 million, whilst the US total net win increased 502% to $42.3 million.

Cettire Ltd (ASX: CTT)

Cettire is a luxury online retailer that sells more than 160,000 products of clothing, shoes, bags and accessories from over 1,300 luxury brands. It recently announced it is expanding into the children’s luxury retailing sector too.

The management said with its FY21 result that the business has seen a substantial increase in active customers, very strong revenue growth, “robust” product margins and an increasing proportion of revenue coming from repeat customers.

In terms of the actual numbers it revealed, active customer growth of 285% to 114,830 was one of the statistics that it showed with triple digit growth. Reported sales revenue went up 304% to $92.4 million (it was an increase of 352% in constant currency terms).

The ASX share is already reporting profit at certain levels of its accounts. For example, it said in FY21 it made $2.1 million of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) as well as $12.7 million of operating cashflow (up 131%). The statutory bottom line was a net loss of $0.3 million.

Cettire said that momentum has continued into FY22, with July 2021 unaudited gross revenue increased 181% year on year. Management said the company is looking to maximise its global revenue potential by taking a long-term view.

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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 Cettire Limited and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Cettire Limited and Pointsbet Holdings Ltd. 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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