This article is about three growing ASX tech shares that could be worth buying including travel business Serko Ltd (ASX:SKO).
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This article is about three growing ASX tech shares which could be worth watching.
Here are those ideas:
Serko Ltd (ASX: SKO)
Serko is a business based in New Zealand that specialises in online travel booking and expense management for the business travel market.
It’s a holding of the listed investment company (LIC) WAM Microcap Limited (ASX: WMI). The fund manager said that Serko has benefited from an uplift in travel and the state by state reopening of borders between New Zealand and Australia. Serko recently raised NZ$67.5 million at NZ$4.55 per share to strengthen its balance sheet.
In the recent FY21 half-year result it reported that total operating revenue was down 66% to NZ$5.1 million. Half-year total travel bookings for the period were down 77%, but have since risen to being down 65% for October.
The ASX tech share is predicting that travel volumes will be in the range of 40% to 70% of pre-COVID-19 levels by March 2021. It also recently started a partnership with Booking.com for business, powered by Zeno (which is Serko’s platform).
Altium Limited (ASX: ALU)
Altium is one of the world’s leading electronic PCB software businesses. It offers different software for different sized teams of engineers, with the flagship software offering being Altium Designer.
The business is aiming to be the clear global market leader over the next five years as it aims for 100,000 Altium Designer subscribers. It also has a revenue goal of US$500 million, though this could take a little longer to achieve because of the impacts of COVID-19.
In FY20 the company generated 10% revenue growth, profit before tax grew by 12% to $64.6 million, normalised earnings per share (EPS) went up by 5% and subscribers went up 17%.
In FY21, which has largely been affected by COVID-19 again, Altium is expecting revenue to grow by 6% to 12% to US$200 million to US$212 million whilst earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in a range of US$76 million to US$89 million.
The ASX tech share is heavily focusing on growing its cloud offering, Altium 365, so that engineers can collaborate in the best way. It would also allow Altium to monetise its Altium 365 platform either through transaction fees on manufacturing (like an Airbnb model) and/or premium services (such as the Amazon Prime model).
At the current Altium share price, it’s priced at 46x FY23’s estimated earnings.
Betashares Nasdaq 100 ETF (ASX: NDQ)
This is an exchange-traded fund (ETF) that’s invested in 100 of the largest businesses listed on the NASDAQ, which is a stock exchange in the US.
BetaShares promotes this ETF as a way to “in one trade on the ASX get access to companies like Apple, Amazon and Google, that have changed the way we live.” The ETF provider also points out that the ETF provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.
Whilst the ETF, which can be bought on the ASX, doesn’t give exposure to ASX tech shares, it does give exposure to many of the world’s most well-known technology businesses.
Its biggest holdings include: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet (Google), Nvidia, PayPal, Adobe, Netflix, Intel, Broadcom, Qualcomm and Texas Instruments.
This ETF has delivered outperformance over the long-term. At 30 November 2020, over the prior five years it had delivered an average return per annum of 21.5%.
Betashares Nasdaq 100 ETF has an annual management fee of 0.48%.
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Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and Serko Ltd. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.