Looking to add a few booming ASX tech shares to your portfolio in 2025 with more strong growth potential?
Then you may want to run your slide rule over global sports data and analytics company Catapult Group International Ltd (ASX: CAT) and mining software solutions provider RPMGlobal Holdings Ltd (ASX: RUL).
That's according to the fund managers at Monash Investors, who hold both Aussie technology companies in their Monash Investors Small Companies Fund.
And Monash Investors is bullish on the outlook for the ASX tech shares in 2025 and beyond.
Here's why.
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Two fast-growing ASX tech shares
In the fund's December update, Monash Investors noted, "An important dynamic within our portfolio that we've really emphasised is its multi-thematic nature."
The fund managers added:
We primarily own what we consider to be higher quality growing companies that carry the prospect of both meaningful earnings growth over time, as well as valuation re-rate as they grow and graduate through the market cap ranks attracting greater investor interest.
As recent examples of growing and re-rated companies, they cited ASX tech shares RPMGlobal and Catapult Communications.
Monash Investors noted that both companies "are high-quality software businesses with significant growth potential, high switching costs (and/or inferior alternatives), and low customer churn. Each of which has also re-rated over the past year as they've grown and joined the S&P/ASX 300 Index (ASX: XKO)."
Catapult was added to the S&P/ASX All Technology Index (ASX: XTX) on 23 September as part of S&P Dow Jones Indices quarterly rebalance. RPMGlobal was added to the ASX 300 on the same date.
What's been happening with the companies?
Both ASX tech shares have delivered outsized gains to investors over the past 12 months.
Shares in RPMGlobal are up 58% since this time last year while the Catapult share price has, well, catapulted up a whopping 177%.
As for what's been driving the big share price gains, for FY 2024, RPMGlobal achieved a 15% year-on-year revenue increase to $113.3 million. And underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $15.3 million were up 28% from FY 2023. On the bottom line, the company's net profit was up 132% to $8.6 million.
Catapult has also been posting strong growth metrics.
For its half-year results, announced on 14 November, the ASX tech share reported revenue of US$57.8 million, up 19% year on year. And annualised contract value (ACV) growth in constant currency came in at 20% to reach an all-time high of US$96.8 million.
As the Motley Fool's James Mickleboro pointed out on the day, "This is a big positive given that it is Catapult's leading indicator of future revenue."
