March 2022 could be the month to look at some exciting ASX growth shares which are expecting growth in the coming years.
The Russian invasion of Ukraine as well as inflation concerns have seemingly caused a lot of volatility in 2022 so far.
Warren Buffett once said: "Be fearful when others are greedy and greedy when others are fearful."
With that in mind, here are two ASX growth shares to consider:
Image source: Getty Images
Australian Ethical Investment Limited (ASX: AEF)
Australian Ethical is one of the fastest-growing fund managers in Australia. It provides investment products that can align with investors' ethics. Typically, Australian Ethical avoids sectors like fossil fuels or tobacco.
Its funds under management (FUM) continues to grow. The FUM reached $6.9 billion at 31 December 2021, up 38%. This helped drive operating revenue higher by 38% to $35.2 million.
Underlying profit after tax grew 12% to $5.4 million.
Why did profit grow less than revenue? The ASX growth share is investing in a number of key areas to deliver long-term growth.
Operating expenses jumped 45% as it invested in its business capability with a number of strategic hires. It's investing in marketing to grow brand awareness and expand the preference for Australian Ethical with advisers. Expenses related to the implementation of technology initiatives, new product launches and acquisition due diligence costs also grew.
Australian Ethical says it is in an enviable position to capture its "natural and achievable share" of a rapidly growing addressable market of investors who want greener or more ethical investment options.
Airtasker Ltd (ASX: ART)
Airtasker is a company that operates a platform for 'taskers' to provide services to people who are willing to pay for work to be done.
The ASX growth share is seeing growth in the number of tasks done on its platform as well as the average price per task, which could suggest inflation but also that more people are trusting Airtasker for more complicated tasks.
The FY22 first half saw gross marketplace volume (GMV) grow 15.5% year on year to 83.6%. But there were lockdowns in the first quarter, the second quarter saw GMV growth of 39% quarter on quarter. The average task value reached $255 in the second quarter, up 24% year on year.
International growth is a very important area of focus for the ASX growth share because countries like the UK and the US have much larger total addressable markets than Australia.
In the US, in the second quarter, the US saw task growth of 71% quarter on quarter. It's focused on cities like Atlanta, Kansas City, Dallas and Miami, though it's also seeing growth in 'non-core' cities.
In the UK, Airtasker's second-quarter GMV was up 121% year on year thanks to both supply and demand rising.
The ASX growth share has a very high gross profit margin, which allows the business to re-invest that cash flow for growth.
Airtasker is growing quicker than expected, so it increased its FY22 second half GMV guidance to a range of $107 million to $110 million, up from $105 million.
