Opinion: This is one of the best ASX growth shares to own for the next 5 years

This stock is rapidly growing, and I'm excited about it.

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ASX growth shares are some of the most exciting investments to own because of the way they rapidly scale. Compounding enables these companies to become significantly larger quickly.

We want to own businesses that are currently small but are on their way to becoming much bigger in the next few years because they usually create shareholder returns.

The ASX growth share I'm going to write about is Airtasker Ltd (ASX: ART). It has gone up more than 50% in the past year, but its fall of 16% since 23 January 2025 makes it seem like a buy-the-dip opportunity.

I think this company is an attractive opportunity for three main reasons, so let's examine those.

Strong revenue growth

When a business grows revenue at a double-digit pace, I think the company is growing its underlying value at a fast pace as well. The latest update we've heard from the business was the quarterly update for the three months to 31 December 2024.

In that update, the task platform business said its group revenue reached $13.6 million (up 11.4%), with Airtasker marketplace revenue up 15.8% to $11.7 million, Airtasker UK revenue up 95.2%, and Airtasker US revenue up 278.6%.

The ASX growth share has been utilising its media partnerships in the UK and US to access a large amount of potential customers and grow its brand awareness.

The UK and US are both larger markets than Australia, so these two countries could be significant sources of earnings in the next five years.

Airtasker has delivered pleasing revenue growth despite the economic headwind challenges in Australia (and the UK and US) over the past couple of years amid high interest rates. So, a recovery to broad economic growth in Australia (and other countries) could be a useful tailwind in the coming years, if that happens.

Strong profit margin

The ASX growth share has a very high gross profit margin of more than 90%, which means that a lot of the revenue translates into usable gross profit that can be used to invest in growth activities or business capabilities.

Its business model means the business is already delivering positive operating profit (EBITDA) in Australia. In the FY25 second quarter, it said it made $2 million of Australian net EBITDA after taking into account the global head office operating expenditure of $4 million and global head office innovation investment of $0.9 million.

In the next five years, I think the company's high level of gross profitability in Australia can translate into a rising operating profit margin for the overall business. Once they reach a certain scale, operating profit in the UK and US could also rapidly increase.

Geographic expansion possible

When I look at some of the best-performing ASX growth shares over the last five years, international expansion is usually a key element because it expands its growth runway. Examples include Pro Medicus Ltd (ASX: PME) and WiseTech Global Ltd (ASX: WTC).

Airtasker has already demonstrated its enterprise by expanding in the UK and the USA. There are plenty of other markets that the ASX growth share could expand into within the next five years. It has a New Zealand and Singapore website, suggesting where the next focus could be. Canada, Ireland, and South Africa are also countries that could make sense in the next few years.

I'm excited about what could unfold for this business if it continues growing revenue and profitability in the next five years.

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. has positions in and has recommended WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker and Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. 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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