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2 ASX tech shares that look like great buys to me

I believe that it’s a good time to buy some high-growth ASX tech shares.

It’s hard to know exactly what price to pay for a business that’s growing quickly, and they may never drop to that desired price. So it could be a good idea just to ‘buy the dip’ when the dips come whilst the business gets bigger and bigger.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is already one of the biggest retailers of furniture and various home products, but it wants to be the biggest in Australia.

The company continues to experience strong sales growth. In FY22 to 15 October 2021, the ASX tech growth share had seen revenue rise by 56%. But despite that, the Temple & Webster share price is down by 17% in the last month.

One of the main things that I like about this business is the growing range of products it is selling. most of which is shipped by suppliers, so Temple & Webster doesn’t need to hold inventory for this. The capital light/negative working capital model is very useful and allows the business to rapidly grow. It’s also expanding its own private label range, with increased margins.

It’s also investing heavily to improve the customer experience. For example, it’s investing in augmented reality (AR) so that the customer can see the potential product in their home.

Over the long-term, I think this business can become much bigger and very profitable (for a retailer).

Adore Beauty Group Ltd (ASX: ABY)

This is another ASX tech growth share that I really like. Category leaders can achieve the best economies of scale, it allows them to spend more on advertising and offer customers more.

Adore Beauty’s has a number of interesting touch points with customers. For example, it has the Beauty IQ podcast and also launched the bite-sized beauty podcast.

Despite the business growing revenue by another 25% in the first quarter of FY22, the Adore Beauty share price has actually dropped by 17% in the last three weeks.

I think that Adore Beauty is doing everything right to grow the business and achieve greater scale benefits in the coming years.

The ASX tech share is seeing continuing rapid customer growth (24% year on year to 874,000) with strong customer retention.

Adore Beauty is seeing its gross profit margins increase too, which will help the long-term profitability of the business once it slows down the investing for growth.

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Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.

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