There are a number of ASX tech shares that are growing profit and/or revenue at a double-digit rate.
Businesses that are growing at a quick pace have the potential to deliver attractive returns for shareholders over time.
Technology businesses in particular usually have a model that allows them to earn higher profit margins.
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Altium Limited (ASX: ALU)
Altium is one of the leading electronic PCB software businesses in the world. It offers a number of products and services for clients and subscribers to use, including Altium Designer and Octopart. Octopart is a search engine for electronic parts.
Altium says it's benefiting from the growing number of 'internet of things' devices.
The ASX tech share says that Altium Designer is the most widespread professional PCB design tool used by more than 100,000 engineers worldwide. Altium 365, the company's cloud platform offering, allows deep engineering collaboration on the platform to create a network effect. In this week's AGM update, Altium said there has been 35% user growth on Altium 365 in the last three months.
Altimade is going to launch in the second half of FY22 to bring cloud-based manufacturing onto Altium 365 and deliver an experience that "has never been seen before in electronics".
The company is targeting US$500 million of revenue in 2025 where it will be at the size to transform the industry.
In terms of this year's growth, it's expecting revenue to grow by 16% to 20% and annual recurring revenue (ARR) growth of 23% to 27%. Based on business momentum, management is confident that it's not likely to be at the low end of its guidance range.
In the first four months of FY22, it has seen has core business "growing well" with Octopart, Chin, and Nexus performing well.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is an ASX tech share that facilitates electronic donations for large churches in the US.
The business has seen a lot of organic growth over the COVID-19 pandemic as more people turn to digital giving. Pushpay has also made acquisitions to grow the business, including video streaming specialists Resi Media.
Pushpay recently reported its FY22 half-year result which showed that net profit after tax grew by 43% to US$19.1 million. Total processing revenue and revenue both increased by 9%. The company continues to grow its margins, with the gross profit margin increasing from 68% to 69%.
Management believes its customers in the US faith sector have undergone a fundamental technological shift as a result of the current environment, with accelerated adoption of technology.
Pushpay is expecting digital adoption to continue to grow and it's investing for sustainable growth.
It's looking to attract new customers across a number of segments and benefit from increased operating leverage.
The company is also looking to grow in the Catholic segment of the market, which it views as a "significant" long-term opportunity. It has a goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.
