The ASX is home to a dynamic and fast growing tech market. Here we look at 2 ASX tech shares that I believe could be worthy additions to your share portfolio: Bravura Solutions Ltd (ASX: BVS) and Megaport Ltd (ASX: MP1).
Bravura
Bravura is a locally based fintech company. It provides mission-critical enterprise software solutions to both the wealth management and funds administration industry. Since it was founded in 2015, Bravura has seen impressive revenue growth. In FY19, Bravura’s overall revenue increased strongly by 16% to $257.7. million and its earnings before interest, tax, depreciation and amortisation were up by 27%.
The Bravura share price was hit hard during the early phase of the coronavirus pandemic. It has seen a partial recovery since then, and has been trading in the $4–$5 zone since late April. Over the next few months, I see potential for further share price gains from pre-COVID 19 levels as Bravura has not reported any major decline in demand during the pandemic.
Over the longer term, I believe Bravura is well positioned for continued strong revenue and profitability growth, driven by a growing product set and increased demand for wealth management software solutions globally.
Megaport
Megaport provides a ‘network as a service’ offering to enterprises. It is also commonly referred to as an elastic interconnection service. This enables enterprises to increase or decrease their fixed broadband bandwidth. The service is enabled via a network of cloud providers, data centre operators, and network service providers.
Megaport continues to grow its customer base across Asia Pacific, Europe and North America. This ASX tech share reported a whopping 70% increase in revenue to $25.9 million in the first half of FY 2020.
The Megaport share price has also performed strongly recently, increasing by more than 100% over the past year.
I believe that Megaport is well placed to continue its growth story over the next few years, driven by the continued rise of cloud computing and the need for rapid connectivity.
Foolish takeaway
Both Bravura and Megaport are 2 of my top ASX tech share picks right now. Both have strong entrenched market positions in their respective tech niches. Both tech companies also continue to grow their international presence, which in my opinion is likely to lead to strong revenue growth in the years to come.
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Phil Harpur owns shares of MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended MEGAPORT FPO. 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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