2 fast-growing ASX tech shares to buy right now

Looking to add to your share portfolio? I think the ASX tech sector is a good place to start, particularly the small- to mid-cap segment of the market. There are a number of fast growing companies with strong growth prospects over the next 5 years.

Two of my top picks right now are Pushpay Holdings Ltd (ASX: PPH) and Nearmap Ltd (ASX: NEA). Both companies have a growing international presence and strong market positions in their respective niches.

Pushpay

Pushpay is a donor management platform provider for the faith, not-for-profit, and education sectors. The company targets the large-to-medium church sector of the US market. Pushpay has been growing its market share in this market over the past few years, resulting in strong recurring revenue growth.

At the end of 2019, Pushpay acquired rival Church Community Builder, which provides digital church management systems to over 4,000 US churches. This acquisition has expanded its overall offering to church clients and is likely to drive further growth over the next few years.

Pushpay delivered a 39% increase in total processing volume to US$5 billion for the 12 months to 31 March 2020, while its operating revenue increased by 33% to US$127.5 million. The company’s gross margin, expanded from 60% to 65% in FY 2020. The company anticipates further high growth for FY 2021.

May this year proved to be a particularly strong month for Pushpay, with its share price up by a staggering 69%. Due to the closure of many churches across the US during the coronavirus, demand for its online platform has recently increased.

I believe that Pushpay still has significant potential for long-term growth moving forward, as it achieves scale efficiencies and gains further market share.

Nearmap

Another ASX tech share to look at is Nearmap. The company is an Australian aerial imagery and location data company that provides geospatial map technology for businesses, enterprises and government customers across Australia, New Zealand, the US, and Canada.

Nearmap captures images of a particular location approximately 6 times a year. Google Maps, in comparison, typically only updates its images every couple of years or so. Therefore, the information Nearmap provides is typically more accurate and up to date.

Nearmap has been growing its subscriber base strongly over the past few months. What is particularly pleasing is that its average revenue subscription continues to improve, which is flowing through to higher margins. Customer churn is now below 10% on a 12-month rolling basis, down from 11.5% at the end of last year.

The North American market in particular offers Nearmap strong growth potential over the next 5 years.

More reading

• 3 ASX shares to buy and hold for the next decade
• Why Nearmap and this ASX mid cap share could be strong buys
• $3,000 invested in these 2 shares could make you a fortune over the next 10 years
• The top ASX growth shares I would buy for the 2020s
• Sezzle shares and 2 other ASX techs soared up to 50% in the past 4 weeks

Phil Harpur owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Nearmap Ltd. and 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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