It's impossible to know which ASX shares will be some of the best performers in the future. But, with the right analysis, we can identify which businesses seem more likely than others to deliver strong long-term performance.
We won't be able to identify every single winner, so we shouldn't feel too disappointed if we miss out on any particular opportunity.
But there are a couple of names I want to highlight that are delivering exceptional growth for shareholders. I wish I'd invested in them years ago, but it's not too late for me (or anyone) to take a position in these rapidly growing businesses.
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Life360 Inc (ASX: 360)
This is a software ASX share that describes itself as a leading mobile app and tile tracking device company. It enables members to stay connected with the people, pets, and the things they care about most with a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch.
Impressively, the business has built up its monthly active user (MAU) base to 83.7 million across more than 170 countries. The Life360 share price has risen by more than 1,100% in three years as it has continued delivering excellent financial and operational growth.
The update for the first quarter of 2025 was very promising, coming on the heels of years of growth already. Revenue rose 32% year over year to US$103.6 million, with total subscription revenue of US$81.9 million (up 33% year over year).
The ASX share also revealed that annualised monthly revenue (AMR) jumped 38% year over year to US$393 million and adjusted operating profit (EBITDA) jumped US$11.6 million (or 270%) year over year to US$15.9 million.
Two metrics make me believe the company still has a very promising future. In the first quarter of 2025, total paying circles grew 26% year over year to 2.4 million, supported by improved retention in the US. Meanwhile, the average revenue per paying circle (ARPPC) increased 8% year over year, primarily due to US price increases for new and existing subscribers and a shift to higher-priced offerings.
More paying users, and those users paying more, bode well for revenue, while the software nature of its offering means operating leverage can help profit margins increase.
Gentrack Group Ltd (ASX: GTK)
Gentrack is a global software business that provides offerings for both utility companies and airports.
The Gentrack share price has risen by more than 700% in the last three years as the company won new contracts and sells more software to existing clients.
Despite years of strong growth, the business is still reporting good financial progress.
In the FY25 first half, in the six months to 31 March 2025, revenue rose 9.8% to $112 million and statutory net profit after tax (NPAT) jumped 34.7% to $7.2 million. The ASX share's recurring revenue jumped 17%, with prior wins and upgrades flowing through.
The business' airport offering, called Veovo, has continued to grow as it delivers to its backlog of new customers and on upgrades to existing customers. The business continues to provide customers with projects and upgrades.
Software is increasingly important for the operation of airports and utility businesses, so Gentrack is both essential (defensive) and growing rapidly. I think this ASX share is one to watch.
