There are a number of companies in the tech sector that are expected to grow at a strong rate in the future.
Two that you might want to get better acquainted with are listed below. Here's what you need to know about them:
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Nearmap Ltd (ASX: NEA)
The first ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.
Nearmap's aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this provides businesses with the tools to scale quickly and bring their most important initiatives to life.
Although there has been a few bumps on the road, Nearmap has overall been growing at a strong rate over the last few years. This has been driven by increasing demand for its services in the ANZ and North American markets. Looking ahead, management appears confident in its growth trajectory. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.
Morgan Stanley remains bullish on the company despite its legal issues. It currently has an overweight rating and $3.20 price target on its shares. This compares to the latest Nearmap share price of $1.92
Whispir Ltd (ASX: WSP)
Another tech share to look at is Whispir. It is a software-as-a-service communications workflow platform provider. This platform allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
Demand for Whispir's platform has been growing strongly over the last few years and has continued in FY 2021. For example, its recent third quarter update revealed that its annualised recurring revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was driven by continued growth in customers and increased usage. Pleasingly, this is still well short of its total addressable market (TAM) opportunity. Management estimates that it has a TAM of US$4.7 billion in just United States.
And with the company recently raising significant capital, it is well-funded to accelerate and execute its growth strategy and capture a growing slice of this market.
Ord Minnett is very positive on the company's prospects. The broker currently has a buy rating and $4.25 price target on its shares. This compares to the latest Whispir share price of $2.84.
