There are some really compelling ASX growth shares that could be exciting investments for the long term at the current price.

Businesses that are planning long-term growth have the ability to produce attractive compound growth in their profit over the long term.

However, some ASX growth shares have seen a substantial decline in their share price in the last few months.

I like to think about it with a mindset of jumping on good prices while they’re available. That’s why I like these two businesses:

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical describes itself as Australia’s leading ethical investment manager. It aims to provide investors with investment management products that align with their values and provide competitive returns.

It has an ethical charter that shapes its ethical approach and underpins both its culture and its vision.

A key driver of the business is its funds under management (FUM), which helps the business generate revenue as well as net profit after tax (NPAT). The company is benefiting from consistent superannuation guarantee contributions as well as rollovers from balances from new members that joined.

The ASX growth share is seeing ongoing growth with its customer numbers, which can help the long-term FUM growth. In the FY22 third quarter, customer numbers rose to 79,909, up 4% from 31 December 2021.

Despite all of the volatility, the business reported that at 31 March 2022, its FUM movement for the financial year to date remained positive – it was up 13% since 30 June 2021 to $6.83 billion.

Of the total FUM, $4.42 billion was in superannuation, which may be stickier for Australian Ethical because of the restrictive withdrawal rules of superannuation.

The Australian Ethical share price is down around 65% this year to date.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of my preferred ASX tech shares because of the quality of its client base, its shift to a software as a service (SaaS) model, and its expected growth margins.

The ASX growth share has seen a large shift to its cloud offering. In the FY22 first half, the ASX growth share reported that SaaS annual recurring revenue (ARR) reached $225.1 million, up 44%. It’s expecting SaaS ARR to continue to grow strongly, up more than 40% over the full year.

TechnologyOne says in times like this, customers turn to enterprise resource planning (ERP) software to achieve greater efficiencies in their businesses – they save at least 30% when using its global SaaS ERP.

It boasts that it’s benefiting from improving margins because of the “significant economies of scale” from its solution.

The ASX growth share says it’s on track to deliver total ARR of at least $500 million by FY26. I also think other long-term guidance of the business is very attractive – it’s expecting to grow its profit before tax margin to 35%.

The company is looking to win further growth with its global software solution, increased product adoption by existing customers, new customers, and expansion globally.

The TechnologyOne share price has fallen 19% this year to date.

The post I think these excellent ASX growth shares are buys for 2022 and beyond appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and TechnologyOne Limited. 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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