3 ASX tech growth shares to add to your portfolio

Here are 3 tech companies I'm tipping will grow into the next Afterpay Touch Group Ltd (ASX: APT).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Tech shares have delivered some of the highest (and most well publicised) returns on the ASX. Over the last two years, shares in Afterpay Touch Group Ltd (ASX: APT) have exploded from under $5 to well over $30, a gain of more than 600%. Over the same time period, WiseTech Global Ltd (ASX: WTC) shares have surged almost 300%. And more recently, shares in promising young payments and identity verification company iSignthis Ltd (ASX: ISX) skyrocketed 630% (and that's only since January!).

Needless to say, plenty of people have made a lot of money investing in these up-and-coming tech companies – especially those that got in early. But picking the right ones for success can be hard and fraught with risk. So here are 3 young companies I've recently put my own money behind.

All 3 target similar clients and offer niche products or services with a particular focus towards harnessing the power of artificial intelligence (AI) and machine learning. Without a crystal ball, I can't say if they will soar to the heights of Afterpay or Altium Limited (ASX: ALU). But if they capitalise on their potential – and benefit from a little luck along the way – all 3 could deliver plenty of growth in the mid to longer-term.

1. Dubber Corp Ltd (ASX: DUB)

Australian software company Dubber develops cloud-based technologies that help its business and corporate clients record, manage and analyse their phone calls and communications. Dubber's AI technology even allows users to analyse a caller's emotions and stress levels. Tools like this can help a company improve its customer service and become more efficient.

In FY19, revenues jumped by 132% to $7.4 million driven by a 222% increase in active customers. The company is focused on expanding its global footprint in North America and Europe while attempting to disrupt an industry traditionally reliant on hardware with its software-as-a-service (SaaS) model. 

2. Livetiles Ltd (ASX: LVT)

I'm excited by Livetiles, even if the market reaction to it recently has been muted. Since hitting a 52-week high of $0.61 back in April, its shares have slid 34% lower to $0.40 as at the time of writing. That still puts it up 25% so far in 2019 – which isn't a return to be scoffed at. But I think it has far more growth potential than that.

An Australian company now based out of New York, Livetiles helps its business clients create engaging and collaborative online working environments for its employees. It has been cosying up to Microsoft in the US, with the tech giant now co-selling Livetiles products in 39 countries worldwide.

FY19 results were also positive, with annualised recurring revenues up by 167% to $40.1 million and greatly improved net quarterly operating cash flow. It is still a risky investment however, with the company posting an overall net loss of $42.8 million for the 2019 financial year.

3. ELMO Software Ltd (ASX: ELO)

With a market cap of over $400 million, Elmo is the largest company on this list. It produces a suite of cloud-based software to help its business clients with HR needs such as payroll and people management. Last month it too announced that it would be using AI technology to enhance its product offering, partnering with the University of Technology Sydney to develop analytical software to improve its clients' understanding of their workforce.

FY19 revenues increased by 51% to a touch over $40 million, but rising employee costs as well as the significant costs involved in two business acquisitions made during the year meant the company still posted a net loss for the year of $13.2 million. This makes it a risky investment too – but given these expenditures have been made with the aim of growing the business, it's a risk I've so far been willing to take.

Should you invest $1,000 in Altium right now?

Before you buy Altium shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Altium wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Rhys Brock owns shares of AFTERPAY T FPO, Altium, LIVETILES FPO, Dubber Corp Limited and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, and WiseTech Global. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended LIVETILES FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

Happy man working on his laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Broker Notes

Macquarie just forecast this ASX 300 dividend share could surge 37%. Here's why

Atop its passive income payouts, Macquarie expects this ASX dividend stock could leap 37% in a year.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls
Materials Shares

Does Macquarie rate James Hardie shares a buy, hold or sell?

The company is set to report FY25 earnings this week.

Read more »

A man looking at his laptop and thinking.
Industrials Shares

Which ASX 200 industrials stock does Macquarie expect to sink 40% over the next 12 months?

Can this name build it's way out of such negative sentiment?

Read more »