5 stellar results from ASX tech shares that hardly anyone is talking about

The technology sector continues to see strong performance.

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The ASX tech share sector can be a very fruitful place to find opportunities that can deliver good long-term returns. After the share price pain of 2022, you would have been forgiven for thinking tech shares were going to be seeing some significant pain in their financials.

But that hasn't been the case. The ASX shares I'm going to talk about in this article all revealed impressive growth during reporting season and still seem to be on track for long-term success. I think investors should be paying closer attention to these names.

Airtasker Ltd (ASX: ART)

Task platform business Airtasker reported ongoing good revenue growth and an improvement in its financials, despite the difficult economic conditions.

FY23 revenue rose 40% to $44.2 million, with strong growth in both the UK and US, while the net cash outflow fell by 24% to $16.1 million. The company said it's on track to be free cash flow positive in FY24.

Siteminder Ltd (ASX: SDR)

Global hotel management software business Siteminder reported numbers that seemed to justify its recovery over the last few months.

In FY23, total revenue increased by 30.5% to $151.4 million and annualised recurring revenue (ARR) improved 33.5% to $173.1 million. The underlying earnings before interest, tax, depreciation and amortisation (EBITDA) improved from a loss of $14.6 million in the first half of FY23, to $7.4 million in the second half, bringing the total loss to $21.9 million.

The locked-in ARR suggests further revenue growth can come in FY24.

Altium Limited (ASX: ALU)

Altium is one of the largest players in the electronic printed circuit board design software space. It reported its revenue increased 19.2% to US$263.3 million in FY23, while net profit before tax increased 29.3% to US$87.8 million.

Altium is riding the wave of increasing demand for electrical devices and parts. The company is expecting its FY24 revenue to increase by another 20% to 23% to between US$315 million to US$325 million.

RPMGlobal Holdings Ltd (ASX: RUL)

Small ASX tech shares have seen plenty of volatility and I believe RPMGlobal has reached a profitability inflection point.

The mining software business reported some impressive numbers. Total revenue increased 18% to $98.4 million in FY23, while net profit after tax (NPAT) improved by $7.8 million to $3.7 million. From now on, ongoing revenue growth should help accelerate net profit if margins keep increasing.

Megaport Ltd (ASX: MP1)

The enabler of organisations to connect with cloud infrastructure is seeing strong demand for its services.

In FY23, it grew revenue by 40% to $153.1 million while normalised earnings before interest, tax, depreciation and amortisation (EBITDA) was a positive figure for the first time, coming in at $20.2 million.

The company also revealed that FY24 revenue is expected to grow by between 24% to 27%, while underlying EBITDA is expected to rise between 152% to 182% to between $51 million to $57 million.

It was impressive how much financial growth all five of these stocks were able to achieve during FY23 despite macroeconomic challenges.

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Megaport, RPMGlobal, and SiteMinder. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Megaport and RPMGlobal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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