In my opinion, there are a number of game-changing ASX shares that could be good ideas to buy.
I believe that the businesses that are going to generate the biggest returns are the ones that are changing the game in the industry they operate in.
Here’s the first one:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a leading electronic payments business which specialises in the donation space.
Cash has been the preferred payment method for donations in US churches. But digital donations are rapidly gaining popularity. Pushpay is a key enabler of that, as it processes donations for many large and medium US churches. It also offers church management tools and software.
In FY21 alone, Pushpay processed US$6.9 billion of donations. That was an increase of 39% compared to FY20. Pushpay isn’t seeing a reversal of the digital donation trend that it experienced during the worst of COVID-19.
But I’m also impressed and attracted to the rapidly growing profit margins. In FY21 the revenue went up 40% whilst the net profit grew much faster, going up 95% to $31.2 million.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is an ASX healthcare share that is really changing the breastfeeding screening space in the US (and hopefully beyond that in the coming years).
The company has made a few acquisitions that have significantly improved the company’s offering and market share. The CRA acquisition may be the most important one because of its risk capabilities and the connection with electronic health records.
At the latest quarterly update, Volpara said that it has a market share of 34% of US women who have had a breast screening.
Not only can Volpara continue to increase its market share, but it can also grow its average revenue per user (ARPU). In the second quarter of FY22, ARPU rose to US$1.46 per share, up from US$1.42 in the first quarter of FY22. The business is able to sell/use more of its different software modules to clients.
If it can increase its revenue, then its very high profit margin (of 91%) can help a lot of that profit help the EBITDA (EBITDA explained) rise faster than ‘normal’ businesses.
Volpara is doing well in the US, but it’s making positive steps in Europe and this could help it become a global business in time.
At the moment, it has annual recurring revenue (ARR) of US$20.4 million, up US$1.2 million from the end of the FY22 first quarter.
