I think these 2 ASX shares are buys due to exciting growth potential

ASX share market volatility has pushed down the valuations of some businesses. A company isn’t necessarily a buy just because it has fallen in price.

However, for businesses that we are interested in, a cheaper price gives us the opportunity to buy a small slice of the business at a lower entry point.

Investing is ultimately all about making returns. The lower the price we can buy a (good) asset, the better chance we give ourselves of making good returns.

There are plenty of good ASX growth shares to consider in my opinion. While plenty of businesses have seen a strong rise in the share price over the last couple of months, I believe that a number of them still represent very attractive value at the current levels.

Both of these businesses look like compelling opportunities to me:

RPMGlobal Holdings Ltd (ASX: RUL)

The company describes itself as a global leader in the provision and development of mining software solutions, advisory services and professional development to the mining industry. Its aim is to help mining clients extract more value at every stage of the mining lifecycle, enabling them to achieve safer, cleaner and more efficient operations in over 125 countries.

In terms of being better value, the RPMGlobal share price has dropped 26% in 2022. It’s currently been transitioning clients from perpetual license sales to subscription license sales over the last 12 months.

Its total contracted value (TCV) derived from software license sales for FY22, to the end of June 2022, totalled $55.9 million – this was an increase of $5.6 million from its last announcement to the market on 27 June 2022, just four days earlier, of $50.3 million.

The ASX growth share’s annually recurring revenue (ARR) from software subscriptions (excluding annually recurring maintenance and support revenue from past perpetual software licenses) finished the year at $32.8 million, up $10.9 million from the start of FY22.

RPMGlobal said that mining companies are accelerating their endeavours to move their technology solutions into the cloud and that it has a first-mover advantage, so it’s well-positioned to benefit most from this structural change. Its software sales pipeline continues to grow as its product range and customer base expands.

It has a number of major clients including Glencore, Anglo American, Rio Tinto Limited (ASX: RIO), BHP Group Ltd (ASX: BHP), Vale, Fortescue Metals Group Limited (ASX: FMG) and South32 Ltd (ASX: S32).

Pushpay Holdings Ltd (ASX: PPH)

This ASX growth share provides a donor management system, which includes donor tools, finance tools and a custom community app, a church management system and video streaming solutions to the faith sector, non-profit organisations and education providers. It is benefiting from the long-term shift of donations from cash to digital giving.

One of the first things to keep in mind with Pushpay is that it has received unsolicited, non-binding and conditional expressions of interest or approaches from third parties that want to buy the company. It’s in the process of assessing these approaches and has provided selected information to better inform those parties and to assist them to submit proposals.

A takeover offer could provide a useful boost to the Pushpay share price.

In FY23 to March 2023, it’s expecting to report annual operating revenue growth of between 10% to 15%, while investing in the business to support growth and enable future scale.

By FY25, it’s expecting to reach more than US$10 billion of total processing volume and more than 20,000 customers. It’s expecting the benefits from investing in its business from FY24, with underlying profit expected to grow faster than revenue. For example, in the long-term, the ASX growth share wants to reach a 25% market share of Catholic parishes – in FY24 it’s expecting a strong uplift in sales.

The company recently announced the Archdiocese of Seattle as a customer, which will use ParishStaq, the company’s integrated technology platform to help parishes and dioceses increase engagement and grow their communities. This represents an opportunity to reach 174 parishes and a Catholic population of over 600,000 people.

The post I think these 2 ASX shares are buys due to exciting growth potential appeared first on The Motley Fool Australia.

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More reading

• Does the bull beat the bear for this ASX tech share?
• Loss-making ASX shares: Big investment opportunity or extreme risk?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PUSHPAY FPO NZX and RPMGlobal Holdings. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended RPMGlobal Holdings. 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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