Tesla Inc (NASDAQ: TSLA) shares reversed 4.9% to US$166.63 last night on underwhelming vehicle deliveries. The update could hint at a continued revenue growth decline in 2024. So, could it be time to ponder ASX shares for greater top-line expansion?
Business expansion is a key component in providing shareholder returns. Global consulting firm McKinsey describes it as a 'fundamental driver of value creation'.
A company often fails to reward investors without more money flowing in through increased products/services sold or higher prices. Never mind the challenge of growing profits on a stagnant top line.
It might be possible through cost-cutting in the short run, but rarely can a company sustainably cut its way to growth.
You might be wondering what better options there are than Tesla; now knowing the importance of revenue growth. The ASX is aflush with shares parading revenue growth above that of the electric vehicle (EV) maker.
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ASX shares beating Tesla on growth
Tesla's revenue growth has backtracked from 71% in 2021 to 19% in 2023.
Revenue for the 12 months ended 31 December 2023 came in at US$96.77 billion, up 18.8% from a year earlier. To be clear, this isn't a terrible rate of growth. For comparison, the aggregate revenue growth across the S&P 500 Index (SP: .INX) is 3%.
Nevertheless, here are three ASX shares pumping up their revenue at a higher rate than Tesla.
21% revenue growth: The third largest company on the ASX is growing faster than Tesla. That's right, Aussie biotech giant CSL Ltd (ASX: CSL) is 87 years older than the sleek carmaker and still increasing its top line at a youthful pace.
CSL recorded revenue of US$14.18 billion in the 12 months ended 31 December 2023. In 2022, the company generated US$11.71 billion in revenue. However, it is worth noting that a portion of this growth came from the Vifor acquisition.
23% revenue growth: The next ASX share firing up its financial figures is accounting software company Xero Ltd (ASX: XRO). This New Zealand business differs from Tesla and CSL because of its lack of profits. Yet, its revenue growth is in terrific shape, increasing 23% compared to a year ago.
Revenue for the 12 months ended 30 September 2023 arrived at NZ$1.54 billion. A year earlier, the company's total revenue tallied up to NZ$1.25 billion. In February, the Xero team shared their aspiration to double the size of the business.
29% revenue growth: Lastly, an ASX share that bests Tesla in revenue growth and profit margin. Founded 8 years before the automotive spectacle, WiseTech Global Ltd (ASX: WTC) is a logistics software company flexing impressive fundamentals.
WiseTech raked in $939 million in revenue for the 12 months ended 31 December 2023. A year earlier, this figure had arrived at $729.4 million.
Furthermore, the company outlined full-year FY24 revenue guidance of $1,040 million to $1,095 million, equating to an increase of between 27% and 34%. This is not a one-off either. WiseTech was generating $284.9 million in revenue a mere five years ago.
