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Betashares Global Cybersecurity ETF (ASX: HACK)
This ASX share is a cybersecurity exchange-traded fund (ETF) which gives exposure to both global large players and emerging businesses.
Worldwide spending on cybersecurity is expected to grow to almost US$250 billion by 2023. It's expected to be US$203 billion in 2021 and it was US$137.6 billion in 2017 according to BetaShares.
When considering why should investors consider cybersecurity businesses, BetaShares says that due to the rising number of internet-connected devices across the globe, and the associated rapidly escalating cost of cybercrime, cybersecurity services can be considered a growth sector. Most major public and private organisations continue to spend more on cybersecurity in recent years.
It has an annual management cost of 0.67%.
Some of the largest businesses in the portfolio include Crowdstrike, Zscaler, Okta, Accenture, Cisco Systems, Cloudflare, Varonis Systems, Splunk, Fortinet and Cyberark Software.
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a leading electronic donation ASX share which processes billions of dollars of payments for large and medium US churches.
In FY21, Pushpay processed US$5.9 billion of donations. This was an increase of 39%. Pushpay is expecting continued growth in total processing volume driven by continued growth in the number of customers using its donor management system, further development of its product set resulting in higher adoption and usage, and increased adoption of digital giving of its customer base.
This ASX share has plans for the future.
It wants to achieve a 50% market share of donations for churches in the US. This could translate into US$1 billion of annual revenue.
Pushpay recently unveiled plans to invest between US$6 million to US$8 million in FY22 to grow in the Catholic segment of the sector. The benefits of this investment are expected to be felt over the coming years.
The growth of processing volume is turning into revenue, profit and cashflow growth.
In FY21, operating revenue increased by 40% to US$179.1 million, net profit after tax (NPAT) rose by 95% to US$31.2 million and operating cashflow increased by 145% to US$57.6.
Expanding operating leverage helped the business grow its profit quicker than revenue. Whilst operating revenue grew 40%, operating expenses only increased by 9%. As a percentage of operating revenue, total operating expenses improved by 11 percentage points from 47% to 36%.
Pushpay is expecting "significant" operating leverage to accrue as operating revenue continues to increase, while growth in operating expenses remains low.
At the current Pushpay share price, it's valued at 32x FY22's estimated earnings according to Commsec.
