Some ASX shares have compelling growth potential and are benefiting from structural growth or from specific company plans.
Businesses that utilise technology can produce above-average margins, which can help profit growth and perhaps boost the shareholder returns.
These two ASX share investments could be compelling in the coming years:
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Betashares Global Cybersecurity ETF (ASX: HACK)
This is an exchange-traded fund (ETF) that is all about the businesses which operate in the global cybersecurity space.
Between 2017 and 2023, the global cybersecurity market is expected to grow from US$137.6 billion to US$248.3 billion. As the amount of cybercrime increases and the level of important information online grows, there is an increasing need for cyber protection.
BetaShares says that demand for cybersecurity services is expected to grow strongly for the foreseeable future.
For an annual cost of 0.67%, investors can get exposure to the 35 businesses in the portfolio. Some examples of the businesses in the portfolio include: Palo Alto Networks, Cisco Systems, Crowdstrike, Accenture, Check Point Software and Cloudflare.
Past performance is not a reliable indicator of future performance. However, over the last five years it produced an average return per annum of 20.3% to 31 January 2022.
Airtasker Ltd (ASX: ART)
Airtasker is a fast-growing platform ASX share. It enables people and businesses who need work doing to connect with people willing to do the work.
The business showed a strong recovery in the second quarter of FY22 after lockdowns ended in Melbourne and Sydney. Second-quarter gross marketplace volume (GMV) was up 39% quarter on quarter to $48.6 million, whilst the second-quarter revenue rose 37.5% quarter on quarter to $8.1 million. A record weekly GMV run rate of $4.5 million was achieved in December.
Internationally, the business is growing even quicker in the much larger markets of the US and the UK. The US posted task growth of 71% quarter on quarter and the UK saw quarterly GMV growth of 121%.
The business is also benefiting from an increase in the average task value, in the second quarter it rose 24% year on year to $255.
Airtasker has a high gross profit margin, allowing it to re-invest most of the new revenue into new marketing and other growth expenditure.
The business pointed out that in Australia it only has a 0.3% market share of a $52 billion local services market, generating $153 million of GMV in FY21. If it were to capture the same 0.3% in UK and USA, that would mean GMV of $210 million and $1.5 billion respectively from each of those markets.
In the US, the company is focused on a few key cities, being Dallas, Atlanta, Kansas City and Miami.
