Are these 2 ASX tech shares top ideas for May 2022?

These two ASX tech shares are generating growth. Could they be buys?

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Key points

  • Here are two ASX tech shares that may be leading ideas in May 2022
  • Airtasker is a local services marketplace business which is growing internationally
  • The HACK ETF gives investors a way to access the global cybersecurity market

Believe it or not, it’s nearly May 2022 already. Could there be some compelling ASX tech shares to look for next month?

The ASX share market has seen elevated volatility so far this year with the S&P/ASX 200 Index (ASX: XJO) closing more than 2% lower on Tuesday.

Could these two ASX tech shares be top contenders to consider in the current climate?

Airtasker Ltd (ASX: ART)

Airtasker describes itself as “Australia’s leading online marketplace for local services, connecting people and businesses that need work done with people who want to work”.

The latest quarterly update from the company showed ongoing business progress.

For the three months to 31 March 2022, the ASX tech share’s gross marketplace volume (GMV) increased 24.9% to $51.5 million, while revenue jumped 21.2% to $8.6 million.

Despite investing for growth, the company said that it generated a positive operating cash flow of $1 million. It also has $32.8 million of cash in the bank.

International growth continues for the business at a very fast pace. UK GMV growth was 138% year on year. Meanwhile, US-posted task growth was up 90% quarter on quarter. The UK and US markets represent large market opportunities, according to Airtasker. However, these segments are starting from much smaller bases for Airtasker.

The company also noted that it achieved these growth numbers, and the positive operating cash flow, despite COVID impacts and severe weather events, including flooding.

The ASX tech share said in its FY22 half-year result that it had a gross profit margin of 93%, which is one of the highest on the ASX.

The broker Morgans rates the share as a buy.

Betashares Global Cybersecurity ETF (ASX: HACK)

This exchange-traded fund (ETF) is all about the global cybersecurity sector.

BetaShares says that with cybercrime on the rise, “the demand for cybersecurity services is expected to grow strongly for the foreseeable future.” Indeed, the ETF provider points to projections by Statista that the cybersecurity market could grow from US$137.63 billion in 2017 to US$248.26 billion in 2023.

There are a number of different businesses in the HACK ETF’s portfolio. The ASX tech share has around 40 positions at the moment.

These are some of the largest positions in the portfolio: Crowdstrike, Palo Alto Networks, Cisco Systems, Zscaler, Cloudflare, Akamai Technologies, Booz Allen Hamilton, Juniper Networks, Leidos, and Mandiant.

The fund has an annual management fee of 0.67%. Of course, past performance is not a reliable indicator of future performance. However, in the five years to February 2022, the average annual net return has been an average of 20.5%.

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 BETA CYBER ETF UNITS, Cisco Systems, Cloudflare, Inc., and CrowdStrike Holdings, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended CrowdStrike Holdings, Inc. 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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