Pushpay Holdings Ltd (ASX:PPH) and this ASX share are forecasting explosive growth in FY 2021. Here’s what you need to know…
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Although the pandemic is stifling the growth of a large number of companies, there are still a handful that are on course to deliver explosive growth in FY 2021.
Two ASX growth shares that look set to deliver impressive full year results next year are listed below. Here’s what you need to know:
NEXTDC Ltd (ASX: NXT)
NEXTDC is one of the ANZ region’s leading data centre operators. It has been experiencing a surge in demand for capacity at its centres this year due to the accelerating structural shift to the cloud. This led to the company delivering a 14% increase in revenue to $205.2 million and a 23% lift in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million in FY 2020.
Pleasingly, this positive form is expected to continue in FY 2021. At its recent annual general meeting, management reaffirmed its guidance for underlying EBITDA of $125 million to $130 million. This represents year on year growth of 20% to 24%.
Management expects this to be driven by strong growth in recurring data centre services revenue, underpinned by long-term customer contracts. This is being supported by its second-generation facility performance, which is driving scale and earnings.
Pushpay Holdings Ltd (ASX: PPH)
Another company expecting to deliver strong growth in FY 2021 is Pushpay. The growing donor management and community engagement provider to the church market recently released its half year results.
For the six months ended 30 September, Pushpay delivered a 48% increase in total processing volume to US$3.2 billion and a 53% increase in operating revenue to US$85.6 million. And thanks to further operating leverage, things were even better for its earnings. Pushpay reported EBITDAF growth of 177% to US$26.7 million.
Due to this strong performance, Pushpay increased its guidance for full year. It now expects EBITDAF of between US$54 million and US$58 million, up from its previous guidance of US$50 million to US$54 million. This will be more than 115% higher than FY 2020’s EBITDAF of US$25.1 million.
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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