Investors should put these 2 top ASX tech shares on the watchlist

These technology investments could deliver exciting growth.

| More on:
person sitting at outdoor table looking at mobile phone and credit card.

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • ASX tech shares like Airtasker Ltd and Siteminder Ltd offer exciting investment opportunities due to their high profit margins and growth potential, particularly in software sectors.
  • Airtasker is expanding successfully with a notable 20.5% revenue growth in Australia and significant increases in the UK (83.3%) and USA (609.1%) markets.
  • Siteminder targets a 30% annual revenue growth by enhancing global market penetration and product expansion, leveraging high margins from its software solutions for hotels.

ASX tech shares can be some of the most exciting investments to own because of their ability to deliver a strong profit margin and rapid revenue growth.

Businesses that deal in physical products and services can be limited by not having enough warehouses, stores, logistics or manufacturing capabilities. Software companies don't necessarily face those sorts of physical growth limitations. Software is very replicable.

Instead, software usually has low costs, enabling the business to have a strong gross profit margin. Gross profit can then be used for growth activities (such as marketing or software investment).

There are plenty of compelling businesses to consider and I'm going to focus on two investments.

Airtasker Ltd (ASX: ART)

Airtasker describes itself as Australia's leading online marketplace for local services, connecting people and businesses who need working doing with people who want to work.

The company certainly ticks the box when it comes to a high gross profit, with the margin above 90%. This is extremely useful, in my view, due to how this can lead to good growth of earnings before interest, tax, depreciation and amortisation (EBITDA).

The ASX tech share continues to grow in Australia at a good pace – in the first quarter of FY26, Airtasker marketplace revenue grew 20.5%.

A key part of the company's growth plans is expanding in the UK and the US, which are larger markets than Australia. While these two markets are much smaller than the Australian division at this stage, they are growing rapidly.

In the first quarter of FY26, Airtasker UK revenue jumped 83.3% and Airtasker USA revenue soared 609.1%. Airtasker continues to put significant efforts and financial commitments into investing for growth in the UK and the USA. 

Siteminder Ltd (ASX: SDR)

Siteminder may be one of the most exciting ASX tech shares around, in my view.

The company provides software for hotels around the world so they can generate as much revenue as possible by connecting with booking platforms, changing prices and hotel operations.

There are tens of thousands of hotels around the world, so Siteminder has a large addressable market to aim at. Pleasingly, it continues to win more subscribers each year, with larger being a greater focus in recent times.

Siteminder has a longer-term goal of growing its revenue annually by 30%, which is an excellent growth rate to help the business become much larger at a fast pace.

Thanks to the software nature of what it provides subscribers, the business is seeing a rising gross profit margin, operating profit (EBITDA) margin, free cash flow margin and net profit margin.

The company is focused on scaling its growth through the smart platform adoption, product expansion and global market penetration. The smart platform remains early in its adoption and monetisation curve, providing significant long-term potential across its global footprint.

If the ASX tech share continues growing revenue rapidly, then it has a very strong future ahead.

Motley Fool contributor Tristan Harrison has positions in SiteMinder. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A child dressed in army clothes looks through his binoculars with leaves and branches on his head.
Technology Shares

Up 50% in 2026. This ASX tech stock just delivered another record quarter

This ASX tech stock just posted record revenue and a major cash flow milestone.

Read more »

Two people comparing and analysing material.
Technology Shares

Down 10% today: Should you buy Life360 shares?

Bell Potter sees major upside for this tech stock after its recent update.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Technology Shares

DroneShield shares fall after reporting revenue of $216m

This counter drone technology company reported huge revenue growth in FY 2025.

Read more »

Blue light arrows pointing up, indicating a strong rising share price.
Technology Shares

A rare buying opportunity in 1 of Australia's top shares?

This business is one of Australia’s leading lights.

Read more »

Rede arrow on a stock market chart going down.
Technology Shares

Down 40% in 3 months: Are Life360 shares still a buy? 

After the Life360 share price fall, is it still a buy?

Read more »

A high-five between father and daughter who are setting up an app on a laptop.
Technology Shares

Up 29% today. Why Life360 shares are surging on record results

Life360 shares jump as record results and upbeat outlook surprise the market.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward.
Technology Shares

Why Wisetech could be worth watching after a rough year

Wisetech shares have dropped 50% in a year, but the upcoming results could shift sentiment.

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Technology Shares

Pro Medicus shares: A once-in-a-decade chance to snap up this ASX 200 favourite?

The business remains strong, contracts keep flowing, and yet the share price is far lower than it was a year…

Read more »