There are some outstanding ASX tech shares that I would like to buy for my portfolio.
During these times of severe volatility, mostly declines, some excellent opportunities are opening up for investors. A business isn’t a buy just because it drops, but I do think some great investments are now cheaper.
It’s important to remember that a bad investment getting cheaper doesn’t make it much better to consider.
But the drop of these two ASX tech shares makes them look very interesting to me:
Betashares Global Cybersecurity ETF (ASX: HACK)
The HACK ETF is one of the leading ASX tech share ideas around, in my opinion. It’s all about the global cybersecurity industry, which is seeing long-term growth.
Cybersecurity is one of those areas that I think can demonstrate defensive earnings. Households, businesses, governments and other organisations always need protection from cybercriminals. You wouldn’t let your systems become vulnerable just because GDP has gone backward a bit one year.
But there is also long-term potential for earnings to keep rising. More and more services are going online – banking, government services, etc. All of that requires excellent cybersecurity. More of the world is going digital too.
The biggest positions in the portfolio currently include: Cisco Systems, Palo Alto Networks, Accenture, Crowdstrike, Mandiant and Check Point Software.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is one of the best ASX healthcare shares, in my opinion.
It provides clinical functions for breast screening clinics to provide feedback on breast density, compression, dose, and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement, and patient tracking.
The ASX tech share has made two key acquisitions – MRS Systems and CRA Health.
Volpara is growing very well. The latest quarter, being the third quarter of FY22, saw quarterly cash receipts rise by 50% to NZ$7 million. Its annual recurring revenue has grown to around NZ$30 million.
Its coverage of US women being screened has risen to 35%. The retention rate remains very high. There’s no guarantee that it will do as well in Europe, but it’s very promising for global growth that it has managed to do so well in the US.
A key part of future growth will be increasing its average revenue per user (ARPU). This can be done by upgrading clients from older systems. It will also help if Volpara can sell more modules to more of its clients. ARPU over the installed base at the end of the third quarter was US$1.47. But average ARPU for deals in the third quarter was US$1.65.
With its exceptionally high gross profit margin, I think it bodes well for the future if Volpara can keep efficiently investing new revenue for global growth.
The ASX tech share has suffered this year. The Volpara share price has dropped 34% since the start of 2022. Today could be a good time to think about this business for the long-term.
