Growth shares have had a tough run. Concerns about artificial intelligence (AI) disruption and geopolitical risks have pushed a number of high-quality tech names well below their prior highs. That volatility can be uncomfortable, but it can also create opportunity.
Here are three ASX growth shares I think investors could look back on and wish they'd bought at today's prices.
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Life360 Inc (ASX: 360)
Life360 isn't your typical software business.
At its core, it operates a family safety and location-sharing platform that has become deeply embedded in the daily lives of millions of users. The network effect here is powerful. Once families rely on the app for coordination and safety, switching becomes unlikely.
The company has been growing its monthly active users strongly and is increasingly monetising through paid subscriptions. As the paying circle base expands, margins have room to improve.
Some investors have lumped Life360 in with broader tech weakness, particularly around AI disruption fears. But this is not an enterprise SaaS provider that can easily be replaced by a new AI tool. It is an ecosystem built over more than a decade, with data, brand trust, and product depth that would be difficult to replicate quickly.
If user growth continues and monetisation improves, today's share price could look conservative in hindsight.
Siteminder Ltd (ASX: SDR)
SiteMinder operates in a niche that I think has enormous long-term potential: hotel distribution and revenue management software.
Hotels increasingly rely on digital channels to manage bookings across online travel agencies, direct websites, and other platforms. SiteMinder sits at the centre of that ecosystem, helping properties manage rates, availability, and performance.
The opportunity is global. There are hundreds of thousands of accommodation providers worldwide, many of which are still underpenetrated when it comes to modern, cloud-based tools.
Revenue growth has remained solid, and as the business scales, operating leverage should start to show through more clearly. If management continues to execute and drive adoption internationally, earnings could compound at a strong rate over the next decade.
At current levels, I see a company with structural tailwinds trading at a far more reasonable valuation than it was during the market's peak optimism.
Xero Ltd (ASX: XRO)
Xero has been one of the ASX's great long-term growth stories.
It provides cloud-based accounting software to small and medium-sized businesses across Australia, New Zealand, the UK, and increasingly North America. Its ecosystem of integrations and partners creates meaningful switching costs once businesses are onboarded.
Recent concerns around AI and the integration of major acquisitions have weighed on sentiment. But when I step back, I still see a business with strong recurring revenue, global expansion opportunities, and improving margins.
Accounting and compliance are mission-critical functions. Even as AI tools evolve, small businesses still need trusted platforms to manage payroll, tax, and financial reporting. In fact, AI could enhance Xero's value proposition rather than undermine it.
If subscriber growth and profitability continue trending in the right direction, I wouldn't be surprised if today's share price is looked back on as a very attractive entry point.
Foolish Takeaway
Buying ASX growth shares when they are flying high feels easy. Buying them after a sell-off feels far harder.
But history suggests that high-quality growth businesses, purchased at more reasonable prices, can deliver outsized returns over time.
Life360, SiteMinder, and Xero each operate in markets that are likely to be larger in five or ten years than they are today. If they execute well from here, I think investors could look back and wish they had bought at these cheap levels.
