Reporting season is almost over, so this looks like it could be a good time to reflect on how companies performed and which ASX growth shares could kick on.
Plenty of ASX shares have gone up over the last several months, but there are a few that I believe still represent excellent value for the long-term. Here are two of my ideas.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies Ltd (ASX: VHT) is an ASX healthcare share that develops software for screening for breast cancer and analysing the images. The business also has a small but promising lung cancer screening unit.
Volpara Health Technologies
The company’s FY24 first quarter for the three months to June showed a number of attractive attributes. It achieved a third straight positive net operating cashflow quarter, and improved by 100% compared to the NZ$2.8 million outflow in the first quarter of FY23.
Since September 2022, the ASX growth share’s net operating cashflow has been a positive NZ$2.4 million.
Revenue growth has continued strongly – first quarter cash receipts from customers went up by 27% to NZ$11 million. If the business keeps increasing revenue at a good double-digit rate for multiple years, it’ll lead to pleasing profit growth because of the high gross profit margin.
It’s adding customers in both the US and Australia, with plenty of potential for an improvement in average revenue per user (ARPU).
Betashares Global Cybersecurity ETF (ASX: HACK)
This is one of my preferred exchange-traded funds (ETFs) because of the industry that it’s focused on – cybersecurity. It’s invested in a portfolio of 35 cybersecurity businesses across the world.
Businesses and governments (and individuals) need to protect their data and other important things from criminals. Sadly, there seems to be a rising amount of cyber attacks. Optus and Medibank Private Ltd (ASX: MPL) have been two of the most high-profile attacks in recent times.
I’d suggest that the cybersecurity industry (and this ASX growth share) could see a lot of revenue growth over the rest of the decade. Even in an recession, I believe that earnings will hold up – which government or business would be silly enough to abandon their cyber defences if GDP were to decline a little?
Over the next fives I think the HACK ETF can outperform the ASX 200 (INDEXASX: XJO).
