These ASX shares are growing at a rapid rate…
The post 3 ASX shares growing at a rapid rate appeared first on The Motley Fool Australia. –
Are you interested in growth shares? Three to look closely at are listed below.
These three shares have been growing strongly in recent years and look well-placed for more of the same over the 2020s. Here’s what you need to know about these ASX growth shares:
Pushpay Holdings Group Ltd (ASX: PPH)
The first ASX growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. Pushpay has been growing at a rapid rate in recent years thanks to the accelerating digitisation of the church, the shift to a cashless society, and the overall quality of its offering.
Positively, this strong form continued in FY 2021, with Pushpay delivering a 40% increase in operating revenue to US$179.1 million and a 133% increase in EBITDAF to US$58.9 million. This was well-ahead of its original guidance, which was upgraded three times during the year. Further growth is forecast in FY 2022 and management is also planning to expand into a new market.
Temple & Webster Group Ltd (ASX: TPW)
Another ASX growth share to look at is Australia’s leading online furniture and homewares retailer, Temple & Webster. It is has been growing at a rapid rate in recent years and particularly during the pandemic. The accelerating shift to online shopping led to Temple & Webster recently reporting a 112% increase in third quarter revenue and an increase in active customers to ~750,000.
The good news is that online furniture shopping is still in its infancy in comparison to other categories. This bodes well for the future, especially given Temple & Webster’s leadership position. Management is now investing heavily to take advantage of the shift and cement its position as the market leader.
Whispir Ltd (ASX: WSP)
A final ASX growth share to look at is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir’s platform allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
As with the others, Whispir has been experiencing strong demand over the last few years and this has continued in FY 2021. For example, its recent third quarter update revealed that its annualised recurring revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was driven by continued growth in customers and increased usage.
Pleasingly, this is still well short of its total addressable market (TAM) opportunity. Management estimates that it has a TAM of US$4.7 billion in just United States. And with the company recently raising capital, it is well-funded to accelerate and execute its growth strategy and capture a growing slice of its market opportunity.
Should you invest $1,000 in Whispir right now?
Before you consider Whispir, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Whispir wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX, Temple & Webster Group Ltd, and Whispir Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group Ltd and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.