Is it time to buy these 2 beaten-up ASX shares in April 2022?

These two ASX shares have dropped heavily, so, are they opportunities?

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Key points

  • These two ASX shares have both fallen heavily since the start of the year
  • Doctor Care Anywhere is a digital health business that is expecting rapid revenue growth
  • Pushpay is a donation and church management business that is expecting further market share gains

Some ASX growth shares have been sold off significantly since the start of 2022.

With the ongoing growth that some of these businesses are generating, could there be some hidden innovations within these names?

Here are two contenders to consider.

Doctor Care Anywhere Group PLC (ASX: DOC)

Since the start of 2022, the Doctor Care Anywhere share price has fallen 56%. It is down around 75% since the middle of April 2021.

Doctor Care Anywhere describes itself as a United Kingdom-based telehealth company that is committed to delivering the best possible patient experience and clinical care through digitally-enabled, evidence-based pathways on its platform. It uses relationships with health insurers, healthcare providers and corporate customers to connect with patients to deliver telehealth services.

The company recently announced its result for the 12 months to 31 December 2021. It said that it beat FY21 revenue guidance. Total revenue grew by 114.7% to £25 million. There was a 105% increase in consultations to a total of 440,000.

In FY22, the ASX share expects revenue to be between £35 million to £38 million. This represents growth of between 40% to 50%.

By the end of the first half of FY23, the company aims to achieve an annualised run-rate profitability of earnings before interest, tax, depreciation and amortisation (EBITDA). It aims for an annualised run rate of revenue of between £45 million to £55 million.

Supporting the above expectations are three key development areas.

The first is continued organic revenue and consultation growth.

The second development is renegotiating key customer contracts, enhancing revenue and margins.

The final development is the launch of the company’s new operating model, enhancing productivity and margins.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price has fallen almost 20% since the start of the year.

This ASX share provides church management and donation tools for churches in the United States.

It processes billions of dollars of donations every year. In the first six months of Pushpay’s 2022 interim result, it announced that it had achieved a total processing volume of US$3.5 billion (which was 9% higher year on year).

The company says that it expects to see continued revenue growth as it executes its growth strategy and gains further market share in the US faith sector.

Despite the impacts of COVID-19 and subsequent reopening, Pushpay has not seen any material change in digital giving, reverting to non-digital means. This indicates to management that its customers in the US faith sector may have undergone “a fundamental technological shift as a result of the current environment.”

The ASX share is expecting further growth in the future. The company says it will enact strategies that will “allow the company to realise its considerable potential over the long term, while maintaining prudent financial discipline.” That involves expanding its existing suite of solutions, providing bundled product offerings to existing customers, growing its products utilised by customers, attracting new customers and expanding into new segments.

Pushpay recently gave an update that its total processing volume for the 11 months to February 2022 was up 10% year on year. It’s using its “strong” operating cash flow to pay down its debt.

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 PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. 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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