Are these 2 impressive ASX shares buys in December 2021?

Here are two ASX shares with rapid growth potential.

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There are a select number of ASX shares out there that are growing very quickly and might be impressive buys in December 2021.

Businesses that are growing their revenue and/or profit at a very fast pace give themselves a good chance of generating pleasing shareholder returns thanks to the power of compounding.

With that in mind, here are two ASX shares that are very intriguing:

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an investment business that partners with investment managers, which it calls affiliates, that can demonstrate growth potential and whose management teams have strong track records.

Its latest move has been to acquire (convertible redeemable preference) shares that would give Pinnacle a 25% stake in the Australian-based private equity Five V Capital for an investment of $65 million. Pinnacle says that Five V Capital has a high-quality investment team.

In FY21, the business saw aggregate affiliate funds under management (FUM) rise 52% year on year to $58.7 billion, with net inflows of $16.7 billion, of which $4.5 billion was retail. The FUM growth helped net profit after tax (NPAT) increase by 108% to $67 million in FY21.

Pinnacle says that it has an excellent platform in place for sustained growth. It thinks that it has the potential for both organic and acquisition-based growth, both domestically and offshore.

The ASX share is currently rated as a buy by the broker Ord Minnett, with a price target of $17. The Pinnacle share price is valued at 33x FY23’s estimated earnings. Its shares have fallen by 13% over the last month.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster describes itself as Australia’s leading online retailer of furniture and homewares.

It sells over 200,000 products from hundreds of suppliers. It operates a drop-ship model where products are sent directly to customers by suppliers which helps with faster delivery times and reduces the need to hold inventory, allowing for a larger product range.

Temple & Webster also has its own private label range, which is sourced directly by Temple & Webster from overseas suppliers.

The ASX share continues to grow very quickly. Year on year revenue growth for the period of 1 July 2021 to 27 August 2021 was 49%.

Management say the business is benefiting from a number of trends including the ongoing adoption of online shopping due to structural and demographic shifts. The COVID-19 pandemic has seemingly accelerated these trends.

Not only is Temple & Webster rapidly growing its active customer base (up 62% year on year to 778,000), but those customers are spending more as well. In FY21, revenue per active customer increased 12% year on year.

The ASX share is expanding its spending on advertising to increase its customer awareness as well as increase the number of returning customers.

Temple & Webster is investing in a number of areas to make itself more efficient, profitable and/or attractive for customers. For example, it has increased its investment into an artificial intelligence interior design service start-up in Israel after a successful pilot of the service.

It’s currently rated as a buy by Credit Suisse, with a price target of $15.89.

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

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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 PINNACLE FPO and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Temple & Webster Group 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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