This year has already seen a lot of volatility on the ASX share market. Some ASX tech shares have fallen more than 30% since the start of 2022.
Lower prices for businesses may not necessarily mean that they are better value. But, it could mean that the more compelling ideas are cheaper.
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Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a leading business in the electronic donation space in the US. Its main client base is medium and large churches in the US where it provides digital giving tools and church management software.
The Pushpay share price has fallen 30.4% since the start of the year.
The ASX tech share has been steadily winning over churches as clients in the country for years. This sees the company generate attractive ongoing revenue as the donations roll in each year.
Pushpay is seeing its gross profit margin steadily climb, which is helping profitability. The business is investing for growth as it aims to win over at least a quarter of the Catholic market as well. The ASX tech share has pointed out that there are strong links between Catholic churches and some education institutions that could open up further growth avenues.
The business reported that the company hasn't seen any material change in digital giving reverting to non-digital means, indicating that the faith sector may have gone through a fundamental technological shift.
In the longer-term, the business could also decide to expand with its faith tools into other countries or regions.
According to Commsec, the Pushpay share price is valued at 16x FY23's estimated earnings.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is an ASX tech share in the healthcare space. It provides software for both the analysis of breast screening images as well as enterprise-wide practice management that helps with productivity, compliance, reimbursement and patient tracking.
The Volpara share price has fallen 33% since the start of the year.
This business is trying to help as many women as people to identify breast cancer as early as possible. In the US, it has a market share of around 35% of US women being screened. This has been steadily climbing thanks to organic growth and acquisitions.
Its annual recurring revenue (ARR) continues to grow quarter on quarter. It has reached US$21.5 million at the end of its third quarter, up US$1.1 million on the second quarter. The business reports having a very low churn of customers. The gross profit margin is very high, at more than 90%.
Volpara aims to maintain its strong growth rate, while driving down net operating and investing cash outflow and utilising the data it's collecting to help women globally.
The ASX tech share's average revenue per user (ARPU) continues to grow at as it sells more software products to clients. At the end of the third quarter, ARPU was US$1.47, with an average of US$1.65 for deals in that third quarter.
