ASX tech shares can be really good investments over the long-term. The two in this article could be good options for September 2021.
Those businesses can have good profit margins and generate good returns if they keep growing revenue and customer numbers.
Just because a business is in the tech space doesn’t mean it’s automatically good to own.
But I think these two ASX tech shares look like good options to consider:
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a leading software provider for in relation to breast screening, to save families from breast cancer. Not only does it have offerings relating to identifying and managing high risk patients, but it also offers software for the healthcare provider too so they can communicate with clients, monitor the team performance and so on.
The ASX tech share has a very high gross profit margin – it was 91% in FY21, up from 86% in FY20. That means that a large majority of the new revenue falls to the next line of Volpara’s profit.
One of its products are already used in a third of breast screens in the US. That means it has a market share of 33%.
A key part of the growth is an increasing average revenue per user (ARPU). Volpara plans to increase this by selling more services to more clients. Upselling to existing clients is important here – evidence suggests a 200% to 300% increase in recurring revenue for those upgraded.
VanEck Video Gaming and Esports ETF (ASX: ESPO)
This ASX tech share is an exciting exchange-traded fund (ETF) that gives investors access to some of the world’s leading video games businesses.
Inside the portfolio are names like Nvidia, Nintendo, Activision Blizzard, Electronic Arts and Take Two Interactive Software.
There are multiple things to like about this portfolio. Video gaming is pretty defensive – it’s been around for decades and I imagine people will continue playing games for many years to come.
Audiences are growing for the e-sports competitions. There’s high demand for consoles. Margins can keep rising as businesses generate more profit from bigger audiences and player bases.
