The tech sector was a great place for investors to put their money in 2023.
Over the period, the S&P ASX All Technology index rose 34%. This compares favourably to a 7.6% gain by the ASX 200 index.
But if you thought that was strong, just wait until you see the top three performing ASX 200 tech shares last year. They were as follows:
Pro Medicus Limited (ASX: PME)
The Pro Medicus share price was the best-performing ASX 200 tech share in 2023 with a stunning 73% gain. Investors were scrambling to buy this health imaging technology company's shares after it announced a series of large contract wins.
In addition, Pro Medicus impressed the market again in FY 2023 with another very strong full year result. It reported a 33.6% increase in revenue to $124.9 million and a 36.5% jump in net profit after tax to $60.5 million.
Xero Limited (ASX: XRO)
The Xero share price wasn't too far behind with a stellar 60% gain over the period. As well as improving sentiment in the tech sector, investors were buying this cloud accounting platform provider's shares after it reported further strong growth in FY 2023 and the first half of FY 2024.
In respect to the latter, the ASX 200 tech share reported a 21% increase in operating revenue to US$799.5 million thanks to a 13% lift in subscribers to 3.95 million. This helped underpin a 65% increase in adjusted EBITDA to NZ$204.5 million.
Life360 Inc (ASX: 360)
The Life360 share price was on form and charged almost 56% over the 12 months. Investors were buying this location technology company's shares for a few reasons.
One was the fact that its shares had been sold off the year before leaving them at an attractive level at the start of 2023.
Another was its strong top-line growth and successful transition to breakeven ahead of schedule. For example, during the third quarter, Life360 reported a 38% increase in revenue to US$78.6 million and a 41% lift in annualised monthly revenue to $259.1 million.
The ASX 200 tech share's management team also increased its FY 2023 adjusted EBITDA guidance to US$12 million-US$16 million from US$9 million-US$14 million, which went down well with the market.
