3 ASX tech shares to buy now for long-term returns

These 3 ASX tech shares have shown promising form through the coronavirus pandemic and have the potential to provide long-term rewards.

| More on:
Female Archer Materials staffer standing in front of computerised images

Image source: Getty Images

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

ASX tech shares took a beating in March and many are yet to recover previous highs. This means many ASX tech shares are trading at lower multiples than we've seen in some time.

For those with a long-term horizon, market dips are often a good time to add to the portfolio. These 3 ASX tech shares have shown promising form through the pandemic and have the potential to provide long-term rewards. 

Altium Limited (ASX: ALU)

Altium is well-positioned in the current environment, with electronic design anticipated to be relatively resilient to unfolding market conditions. Management remains firmly committed to its aspirational market leadership target of US$200 million revenue in FY20. 

Altium's model is robust and well-diversified across industry segments and regions worldwide. Marketing and direct selling are conducted via the internet and telephone. The roll-out of new cloud platform Altium 365 is being accelerated as worldwide demand for cloud-based collaborative tools grows rapidly.

Appen Ltd (ASX: APX)

Appen reiterated its full-year guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) of $125 million to $130 million last month. The company maintains a healthy balance sheet with cash resources in excess of $100 million. Its global crowd workers are ideally situated, working from home as usual. 

Appen has delivered annual compound growth in revenue of 60% over the past 5 years. A pandemic-led increase in the use of search, social media and e-commerce platforms could enhance Appen's performance, as could the weaker Australian dollar and greater availability of crowd workers.

Arguably the largest global provider of data for machine learning, Appen is strengthening its revenue base by extending the range of customers and expanding into new geographies.

Whispir Ltd (ASX: WSP)

Whispir has shown resilience in the current downturn. A record 49 net new customers were added in the March quarter. This was thanks to increased demand for communications software due to the coronavirus pandemic. Many Whispir customers are utilising the platform to activate and coordinate their COVID-19 business continuity plans. 

Whisper provides a software-as-a-service (SaaS) communications workflow platform that is used by the government for COVID-19 communications. The platform automates interactions between businesses and people, and boasts more than 500 enterprise clients. 

Whispir added 8 international brands as customers during the quarter, demonstrating how the platform can expand into multiple use cases for customers. The company is well funded and on track to achieve its FY20 prospectus forecast of revenue of $37.84 million. Revenues increased by 20% in the most recent half while annualised recurring revenue increased 22% to $36.7 million.

Motley Fool contributor Kate O'Brien owns shares of Altium and Appen Ltd. The Motley Fool Australia owns shares of Altium and Appen Ltd. The Motley Fool Australia has recommended Whispir Ltd. 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 Technology Shares

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Technology Shares

Up 119% this year, can BrainChip shares soar again in 2025?

Can the company keep up the momentum?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Technology Shares

Why is this ASX fintech stock suddenly crashing 22%?

This stock is having a very bad start to the week. What's going on?

Read more »

Three businesspeople leap high with the CBD in the background.
Technology Shares

Guess which ASX All Ords stock is leaping 12% today

Why is this stock having a strong start to the week? Let's find out.

Read more »

A young man working from home sits at his home office desk holding a cup of tea and looking out the window
Technology Shares

Pro Medicus shares higher on $30m contract win

Good news is lifting this high-flying stock on Monday. Let's dig deeper into it.

Read more »

Robot humanoid using artificial intelligence on a laptop.
Technology Shares

The best ASX AI stock to invest $500 in right now

The team at Morgans thinks this is one of the best ways to invest in AI on the ASX.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Technology Shares

This ASX All Ords stock just crashed 25%! Here's why

Let's find out what is making investors rush to the exits on Thursday.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Technology Shares

What's going on with Xero shares today?

The tech stock has made an announcement this morning relating to its CEO.

Read more »

Three analysts look at tech options on a wall screen
Technology Shares

Why did this small-cap ASX tech stock just explode 39%?

Investors are piling into the ASX tech stock on Wednesday. But why?

Read more »