Are these 2 ASX tech shares buys in April?

Should investors look at these ASX tech shares in April 2022?

| More on:

Should you invest $1,000 in Whispir right now?

Before you buy Whispir shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Whispir wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

wondering about asx share price represented by man surrounded by question marks

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

Key points

  • Could these 2 ASX tech shares be investment contenders in April? 
  • Pushpay is a leading digital donation and church management software business 
  • TechnologyOne is an enterprise resource planning tech company 

There has been significant volatility for ASX tech shares in April 2022. But could they be opportunities?

Some technology businesses have the capability of achieving good profit margins because of the intangible nature of their offering.

When combined with revenue growth, tech businesses could deliver good results over the long term.

Here are two ASX tech shares to consider:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a business that predominately serves large and medium US churches in the US. It provides digital donation tools and church management systems.

The company processes billions of dollars of donations each year. It has a total of around 14,000 customers. There is a growing number of customers using multiple products from Pushpay's offering. It recently acquired streaming business Resi Media, expanding the company's offering.

Pushpay describes Resi Media as a high-growth business which has a "strong foothold" in the US faith sector with over 70% of the 'Outreach 100' churches using Resi products.

This ASX tech share is looking to expand in the Catholic sector, eventually reaching a 25% market share, by the number of parishes. According to IBISWorld, in 2016, 27% of US faith giving was generated from Catholic services, totalling US$30 billion. Pushpay says that the Catholic segment represents an estimated annual revenue opportunity of US$330 million.

The benefits from the Catholic segment are expected to be realised "incrementally" over the next financial years.

Pushpay continues to grow its gross profit margin, which increased from 68% to 69% in the first half of FY22. This is up from 54% at March 2018.

TechnologyOne Ltd (ASX: TNE)

This ASX tech share aims to double in size every five years. It provides enterprise software that allows clients to access their software from anywhere.

It says that its 'future' business is expecting to grow by at least 15% per annum, with a particular focus on software as a service (SaaS). The company says that the quality of its SaaS revenue is very high, with a recurring contractual nature, combined with a "very low" churn rate of around 1%. The target is that 95% of revenue is recurring by FY27.

Total annual recurring revenue (ARR) is expected to increase to at least $500 million by FY26. The profit before tax margin was 31% in FY21 and is expected to improve to 35% in the next few years thanks to economies of scale and cost reductions.

TechnologyOne sees a "significant" upside in the UK in the coming years, with the total addressable market in the UK three times the size as the Asia Pacific region.

The ASX tech share says that SaaS is creating significant opportunities, with a "strong" pipeline for 2022.

It's currently rated as a buy by the broker Morgans, with a price target of $13.73.

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 and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

Man pointing at a blue rising share price graph.
Technology Shares

Up 30% in a month, this ASX 200 tech share is 'a compelling opportunity': expert

Analysts from listed investment company WAM Capital say this ASX 200 tech stock is worth watching.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

How much upside does Macquarie tip for Light & Wonder shares after its result?

Let's see what the broker is saying about this tech stock.

Read more »

Business people discussing project on digital tablet.
Technology Shares

Guess which ASX 200 stock is down 4% following Q3 update

Let's see what is causing investors to hit the sell button today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 14% on results day

This tech stock is having a rough time today. But why?

Read more »

Data Centre Technology
Technology Shares

Is it too late to buy NextDC shares?

NextDC's share price has surged over the last couple of weeks. Will it continue?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 25% following an update

This tech stock is being sold off on Wednesday. But why?

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

Why are WiseTech shares sinking 6% today?

What's going on? Let's find out what is happening with this tech stock today.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

NextDC share price lifts off on record quarterly contract wins

AI-fuelled data centre demand is lifting investor interest in the ASX 200 tech stock today.

Read more »