- The demand for Dubber’s offering has been growing steadily over the last couple of years.
- Nearmap is a leading aerial imagery technology and location data provider, trading at a lower price.
- IDP Education looks well positioned to rake higher revenue from its gold standard services, once things are under control.
Growth investing could be quite lucrative if an investor knows the drill. The reason some investors prefer growth investing over value investing is because the former offers much clearer visibility into the future.
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However, this visible growth also comes at a price. More often than not, these companies often quote at a premium to their fair value, which somewhat decreases the margin of safety. But that’s the trade-off for a company, which could potentially grow at an above-average rate. With that being said, let’s have a look at three ASX-listed shares that could outperform their peers.
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- Dubber Corporation Limited (ASX:DUB)
The first ASX growth share on our list is Dubber. It is an AU$742-million software company, which provides scalable call recording service to businesses. Dubber’s cloud-based technology enables businesses to record, manage, and analyse their phone calls and communications.
Demand for the company’s offering has been growing steadily over the last couple of years, which has led to a significant increase in active customers and associated revenue. The company has recently entered into an agreement with global giant Cisco, making its growth prospects to look even stronger. That agreement will see Cisco Webex Calling and Cisco Unified Communications Manager Cloud (UCM) now integrating Dubber call recording at no extra cost to end users.
However, if a user requires additional features, such as transcription, AI-enriched insights, sentiment analysis or video recording, they can then upgrade their Dubber plan from within Cisco’s ecosystem and get immediate access. The DUB share price is trading at AU$2.9, close to an all-time high of AU$3.07.
- Nearmap Limited (ASX:NEA)
Another ASX growth share on our list is a leading aerial imagery technology and location data provider, Nearmap. The demand for its offering has witnessed a sharp surge in recent years. The management also appears confident that this rising trend would continue in the future. On the back of this confidence, it is targeting annualised contract value (ACV) growth of around 20% to 40% per year over long term.
Recently, there has been a complaint filed against its subsidiary, Nearmap US, Inc., in the United States District Court on alleged patent infringement relating to the plaintiffs’ roof-estimation technology. However, the management is confident that the complaint was not based on any merit and it would not affect Nearmap’s core proprietary technology and the business would remain unaffected.
Due to the infringement case, the NEA share price has taken a toll, which makes it even more attractive at AU$1.76.
- IDP Education Limited (ASX:IEL)
The last one on our list is IDP Education. It is an AU$6.1-billion co-owner of the International English Language Testing System (IELTS) and a leading provider of international student placement and English language testing services. IELTS is an important English test, which is trusted by the highest umber of governments, universities and organisations across the world. The company also operates English language teaching schools in South East Asia.
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While demand for its services has been hit hard by the COVID-19 pandemic, trading conditions have now been improving. At the end of 1H FY21, the company reported that testing volumes were broadly in sync with those witnessed in the last month of 2019, just before the pandemic had hit. Although the full-fledged win over the pandemic might be far away, it looks well positioned to rake higher revenue from its gold standard services, once things are under control.
The IEL share price is currently trading at AU$22.06, having corrected form its recent peak of AU$29.22 in February 2021.