2 ASX growth shares that may be buys in August 2021

These two ASX growth shares, including Temple & Webster, could be opportunities.

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There are a few ASX growth shares that might be opportunities to think about in August 2021.

Businesses that are growing revenue rapidly have the potential to grow their value for shareholders at a pleasing rate as well. Scale benefits can be particularly useful for growing profit faster than revenue over time.

These two businesses have been demonstrating growth for a while and have plans for more:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares and furniture.

The ASX growth share believes that Aussies are going to spend more and more online. It's particularly focused on the millennial demographic which is just starting to enter the prime spending period of their lives, according to Temple & Webster.

This business is growing at a fast pace, particularly during COVID-19. In FY21 its revenue increased 85% to $326.3 million and active customers rose 62% to 778,000. Temple & Webster is seeing its existing customer base spend more. Revenue per active customer increased 12% year on year in FY21 due to customers repeat buying more often and spending more when they do.

In the period of 1 July 2021 to 24 July 2021, its revenue has grown by 39%.

The company said that it is exposed to some strong tailwinds at the moment, such as the ongoing adoption of online shopping due to structural and demographic shifts, with an acceleration of these trends due to COVID-19.

Temple & Webster stated:

We will continue our reinvestment strategy, investing into growth areas of the business to grow our online market leadership position with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in our home market.

The business is also thinking about international expansion in the longer-term.

Pushpay Holdings Ltd (ASX: PPH)

This ASX growth share is a digital giving business, which facilitates electronic donations. It is predominately serving large and medium US churches. On an annualised basis, it is processing several billion (US) dollars. Pushpay also provides church management systems to help churches manage their administration needs, whilst connecting with and overseeing their congregations. In FY21, total processing volume went up 39% to US$6.9 billion.

The company is expecting continued growth of 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.

It's also seeing profit margin improvement at a number of different levels. For example, in FY21 its gross profit margin increased from 65% to 68%. It also saw the total operating expenses to operating revenue ratio improve by 11 percentage points, from 47% to 36%.

The company is planning more growth with an expansion in the Catholic segment of the US faith sector. This is part of the plan for the business to become the preferred provider of mission critical software to the US faith sector.

In the current financial year, it's going to invest between US$6 million to US$8 million on product design, development, sales and marketing on Catholic growth.

Pushpay has a goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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