ASX growth shares have made something of a comeback in the past couple of months.

But many experts are still warning investors to buy those companies with solid numbers behind them rather than speculative pre-revenue businesses. 

With this in mind, here are a couple of ASX shares that Cyan Investment Management holds that are growing spectacularly:

Melbourne games studio keeps churning out the hits

Cyan has been a longtime fan of electronic games developer Playside Studios Ltd (ASX: PLY).

After seeing the share price freefall 60% from February to June, the fund was pleased to finally see the unaudited full-year results last month.

"In FY22, Playside grew revenues 169% to $29 million, expanded its team considerably and has a spate of exciting game releases and milestones across FY23," said the Cyan portfolio managers in a memo to clients this week.

"And, importantly, has a very strong balance sheet backed by almost $38 million in net cash."

The ASX tech share has risen a stunning 54% since the June trough. But even after that, cash forms 33% of its market capitalisation.

"The business continues to expand with a newly formed publishing division announced in late July."

While the Melbourne company is not widely covered, both analysts surveyed on CMC Markets currently recommend Playside shares as a strong buy.

Cashing in on big-name clients jumping on a structural trend

Marketing technology provider XPON Technologies Group Ltd (ASX: XPN) is not exactly a household name yet.

But Cyan portfolio managers Dean Fergie and Graeme Carson are confident that it is serving in a space exactly where the business world is heading.

"We see this marketing technology business as a great way to gain exposure to the structural shift towards a requirement for businesses to build first-party (company-owned) data for digital marketing," read their memo.

"The material move away from personal privacy threats such as website tracking 3rd party cookies continues to accelerate as Microsoft Corporation, Google and Apple Inc — along with independent providers like Brave, Firefox and Opera — tighten their browser security systems."

Similar to Playside, Xpon shares halved in value this year until its June trough. Last month, Cyan welcomed its fourth-quarter financials.

"The most recent quarterly cash flow statement confirmed our confidence showing revenue growth of 134% year-on-year."

The Xpon share price has rocketed 55% since June.

The company only listed in December, which was, in retrospect, terrible timing for a high-growth tech stock.

The Cyan team reckons it can only look upwards and onwards from here, armed with a stable of big-name clients.

"Xpon already delivers ARR [annualised recurring revenue] of $16 million (+78% YoY) and expects significant organic growth going forward," read the memo.

"A relative newcomer to the ASX, we expect it to garner [the] attention of investors as revenue builds and new clients are signed up, adding to existing enterprise clients such as Domino's Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT) and Super Retail Group Ltd (ASX: SUL)."

The post Revenue up 169%: 2 ASX tech shares showing explosive growth appeared first on The Motley Fool Australia.

The XPON Technologies Group Limited (ASX: XPN) share price has had a monumental debut on the ASX, surging 20% higher.

The company floated at 12noon AEDT on Thursday after raising $12.5 million during its initial public offering (IPO).

At the time of writing, the XPON Technologies share price is 24 cents. However, earlier today it was trading at 28.5 cents.

Let's take a closer look at the ASX newbie and its IPO process.

But first, what is XPON Technologies?

XPON Technologies is a technology and cloud business that provides services and software solutions enterprises in Australia, New Zealand, the United Kingdom, and Europe.

It allows businesses access to and understanding of data captured during their customer's digital experiences using analytics, artificial intelligence, and machine learning.

It also runs 2 proprietary technology platforms: the Wondaris Consumer Data Platform and the Holoscribe Extended Reality platform.

Its XPON Technologies founder, managing director, and CEO Matt Forman said:

XPON is uniquely positioned at the intersection of converging trends in data privacy and marketing technology…

With businesses facing stricter data privacy restrictions, shorter customer attention spans, and higher expectations for valuable brand experiences, the tools XPON offers through the delivery of our full-stack solution are in high demand.

The company's key verticals include retail, financial services, media & entertainment, and travel.

It has more than 190 customers, including ASX companies such as Super Retail Group Ltd (ASX: SUL), Domino's Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT), and Webjet Limited (ASX: WEB).

XPON Technologies share price surges following IPO

XPON Technologies raised $12.5 million by selling 62.5 million shares – its maximum planned issuance – through its IPO. Under its prospectus, shares in the company were offered for 20 cents apiece.

The company plans to use the funds raised through its IPO to scale and expand its business.

Most will go towards expanding sales, marketing, and customer growth, while a decent portion will fund product development and capability.

From June 2020 to June 2021, the company reported annualised recurring revenue growth of 253%. Right now, its customer retention rate is 99.6%.

Following its float, the company's management and board have a combined 52% holding in its securities.

At its offer price, the company expected to list with an undiluted market capitalisation of around $60.7 million with approximately 303 million shares outstanding.

At its current share price, XPON Technologies has an undiluted valuation of approximately $72.8 million.

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