2 top ASX tech shares for February 2022

February could be the month for these ASX tech shares.

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Key points

  • There are some high-quality ASX tech shares that have been sold-off, which could be opportunities
  • Doctor Care Anywhere, a telehealth business, is seeing a strong increase in organic revenue and growing its number of patients
  • Volpara is a breast screening healthcare tech company which has a high gross profit margin and it’s growing its subscription revenue

Some of the most promising ASX tech shares have seen significant falls in recent weeks. February 2022 might be the month to jump on some of these potential opportunities.

Technology can come in all forms. Some provide services through e-commerce, others provide office software, and so on.

But healthcare is also becoming increasingly technological. These two ASX tech shares could be ones to look at in February:

Doctor Care Anywhere Group Plc (ASX: DOC)

Doctor Care Anywhere describes itself as a UK-based telehealth company that connects patients with healthcare providers through its platform. It recently expanded into Australia with an acquisition as well.

The company recently announced how it performed in FY21, being the 12 months to 31 December 2021. Doctor Care Anywhere achieved revenue growth of 115.7% to $46.3 million. Included in that was 114.6% organic revenue growth, achieving and exceeding its guidance of at least 100% growth.

Profitability is increasing at the business. The gross profit margin went up 5.4 percentage points to 35.7% in the fourth quarter of 2021.

The growth rate is increasing. In the fourth quarter, revenue and consultations increased by 35.9% and 22.7%, respectively, compared to the third quarter of 2021. It also reported 50,500 new patients used the service during the last quarter, which was a new record.

It also recently announced a new operating model, which will see it provide multiple options for patients to receive care depending on their clinical requirement. This is expected to yield a “significant improvement” in margins and profitability.

The business says that it’s well-positioned to maintain its progress in 2022. Despite that, the Doctor Care Anywhere share price has fallen 20% in 2022 and 40% over the last six months.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX tech share that provides healthcare software. Specifically, it’s involved in breast screening and increasingly lung cancer screening.

It has built a market share of around a third in the US of women who have at least one Volpara product used on their screening images.

The Volpara share price has fallen by 18% since the start of the year.

However, the company continues to grow at a fast rate. A couple of months ago, Volpara announced its FY22 result which showed a number of interesting statistics. Its gross profit margin remained above 91%, the subscription revenue jumped 35% to NZ$11.8 million and annual recurring revenue (ARR) increased to US$20.4 million, up from US$12.8 million.

Volpara has been working on building relationships in the lung cancer space, which could help it over the long-term, including RevealDx and Riverain Technologies.

The ASX tech share’s average revenue per user (ARPU) continues to grow. It’s looking to grow the ARPU by selling a platform, not just a product, with its suite of products. It’s winning new deals which are on-boarding with an attractive ARPU. It can also upsell to existing customers – with clients that upgrade from old systems, it typically leads to a 200% to 300% increase in recurring revenue.

It’s also on the lookout for acquisition opportunities that can expand its customer reach, skills or products, to help increase ARPU and/or provide Volpara with technology for the future.

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 and has recommended Doctor Care Anywhere Group PLC and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. 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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