ASX tech shares took a beating in March and many are yet to recover previous highs. This means many ASX tech shares are trading at lower multiples than we’ve seen in some time.

For those with a long-term horizon, market dips are often a good time to add to the portfolio. These 3 ASX tech shares have shown promising form through the pandemic and have the potential to provide long-term rewards. 

Altium Limited (ASX: ALU)

Altium is well-positioned in the current environment, with electronic design anticipated to be relatively resilient to unfolding market conditions. Management remains firmly committed to its aspirational market leadership target of US$200 million revenue in FY20. 

Altium’s model is robust and well-diversified across industry segments and regions worldwide. Marketing and direct selling are conducted via the internet and telephone. The roll-out of new cloud platform Altium 365 is being accelerated as worldwide demand for cloud-based collaborative tools grows rapidly.

Appen Ltd (ASX: APX)

Appen reiterated its full-year guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) of $125 million to $130 million last month. The company maintains a healthy balance sheet with cash resources in excess of $100 million. Its global crowd workers are ideally situated, working from home as usual. 

Appen has delivered annual compound growth in revenue of 60% over the past 5 years. A pandemic-led increase in the use of search, social media and e-commerce platforms could enhance Appen’s performance, as could the weaker Australian dollar and greater availability of crowd workers.

Arguably the largest global provider of data for machine learning, Appen is strengthening its revenue base by extending the range of customers and expanding into new geographies.

Whispir Ltd (ASX: WSP)

Whispir has shown resilience in the current downturn. A record 49 net new customers were added in the March quarter. This was thanks to increased demand for communications software due to the coronavirus pandemic. Many Whispir customers are utilising the platform to activate and coordinate their COVID-19 business continuity plans. 

Whisper provides a software-as-a-service (SaaS) communications workflow platform that is used by the government for COVID-19 communications. The platform automates interactions between businesses and people, and boasts more than 500 enterprise clients. 

Whispir added 8 international brands as customers during the quarter, demonstrating how the platform can expand into multiple use cases for customers. The company is well funded and on track to achieve its FY20 prospectus forecast of revenue of $37.84 million. Revenues increased by 20% in the most recent half while annualised recurring revenue increased 22% to $36.7 million.

More reading

• Altium share price on watch after warning of tough trading conditions
• In a post-COVID world, could Australia be the next superpower?
• Is the Altium share price a buy?
• 3 ASX growth shares to buy immediately with $3,000
• Fund manager thinks investors should look beyond the worst economic data since the Great Depression

Motley Fool contributor Kate O’Brien owns shares of Altium and Appen Ltd. The Motley Fool Australia owns shares of Altium and Appen Ltd. The Motley Fool Australia has recommended Whispir Ltd. 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.

The post 3 ASX tech shares to buy now for long-term returns appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2WGYztK

In morning trade the Kogan.com Ltd (ASX: KGN) share price is shooting higher following the release of a business update.

At the time of writing the ecommerce company’s shares are up 5% to $8.80.

How is Kogan performing?

Last month Kogan released an update which revealed strong third quarter sales growth.

This was driven largely by a 50% jump in sales in March following the closure of retail stores nationally. Kogan’s gross profit also grew by over 50% during the month.

Pleasingly, this strong form has continued into April and the company has seen its sales and gross profit growth accelerate.

According to the release, Kogan’s sales grew by more than 100% in April compared to the prior corresponding period.

Things were even better in respect to profits. Its gross profit grew more than 150% and its adjusted EBITDA increased by more than 200% in April. This strong month means that Kogan’s adjusted EBITDA is now up 40% financial year to date compared to the same period in FY 2019.

This was despite the company investing heavily in building its brand and growing its active customers with its largest ever monthly marketing expense in April.

It certainly appears to have paid off. Kogan grew its active customers by 139,000 during the month to 1,948,000 customers.

Long term incentive plan.

In addition to its business update, the company advised that the Remuneration Committee is proposing to introduce a long term incentive (LTI) plan for its executive directors, Ruslan Kogan and David Shafer.

Kogan Chairman Greg Ridder explained: “Ruslan and David are outstanding business leaders. They have been fundamental in building and growing the high performing company we see today, and shareholders have been rewarded with an exceptional return on their investment since IPO.”

“Recent performance of the Company highlights the solid foundations of our business – with strong customer appeal, multiple revenue streams, diverse supply chains, and world-class proprietary systems and processes. The proposed LTI grant (which will be by way of options over ordinary shares) involves at-risk equity with an additional service condition of at least three years.”

“Other than usual annual reviews, no changes to the modest fixed remuneration of Ruslan and David are proposed. The Remuneration Committee has received advice from an independent expert and believe that the proposed option grant will generate long term shareholder value. We believe the grant is in the best interests of all shareholders,” he concluded.

More reading

• 5 top ASX shares to buy and hold for a decade
• Where to invest $20,000 into ASX shares for strong long term returns
• ASX shares and investing trends that could boom post COVID-19
• 3 ASX shares I should have bought last month
• These All Ords shares have just hit 52-week highs or better

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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.

The post Kogan share price jumps after doubling its sales in April appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3cqO58p