Tesla Inc (NASDAQ: TSLA) shares reversed 4.9% to US$166.63 last night on underwhelming vehicle deliveries. The update could hint at a continued revenue growth decline in 2024. So, could it be time to ponder ASX shares for greater top-line expansion?
Business expansion is a key component in providing shareholder returns. Global consulting firm McKinsey describes it as a 'fundamental driver of value creation'.
A company often fails to reward investors without more money flowing in through increased products/services sold or higher prices. Never mind the challenge of growing profits on a stagnant top line.
It might be possible through cost-cutting in the short run, but rarely can a company sustainably cut its way to growth.
You might be wondering what better options there are than Tesla; now knowing the importance of revenue growth. The ASX is aflush with shares parading revenue growth above that of the electric vehicle (EV) maker.
ASX shares beating Tesla on growth
Tesla's revenue growth has backtracked from 71% in 2021 to 19% in 2023.
Revenue for the 12 months ended 31 December 2023 came in at US$96.77 billion, up 18.8% from a year earlier. To be clear, this isn't a terrible rate of growth. For comparison, the aggregate revenue growth across the S&P 500 Index (SP: .INX) is 3%.
Nevertheless, here are three ASX shares pumping up their revenue at a higher rate than Tesla.
21% revenue growth: The third largest company on the ASX is growing faster than Tesla. That's right, Aussie biotech giant CSL Ltd (ASX: CSL) is 87 years older than the sleek carmaker and still increasing its top line at a youthful pace.
CSL recorded revenue of US$14.18 billion in the 12 months ended 31 December 2023. In 2022, the company generated US$11.71 billion in revenue. However, it is worth noting that a portion of this growth came from the Vifor acquisition.
23% revenue growth: The next ASX share firing up its financial figures is accounting software company Xero Ltd (ASX: XRO). This New Zealand business differs from Tesla and CSL because of its lack of profits. Yet, its revenue growth is in terrific shape, increasing 23% compared to a year ago.
Revenue for the 12 months ended 30 September 2023 arrived at NZ$1.54 billion. A year earlier, the company's total revenue tallied up to NZ$1.25 billion. In February, the Xero team shared their aspiration to double the size of the business.
29% revenue growth: Lastly, an ASX share that bests Tesla in revenue growth and profit margin. Founded 8 years before the automotive spectacle, WiseTech Global Ltd (ASX: WTC) is a logistics software company flexing impressive fundamentals.
WiseTech raked in $939 million in revenue for the 12 months ended 31 December 2023. A year earlier, this figure had arrived at $729.4 million.
Furthermore, the company outlined full-year FY24 revenue guidance of $1,040 million to $1,095 million, equating to an increase of between 27% and 34%. This is not a one-off either. WiseTech was generating $284.9 million in revenue a mere five years ago.
