Tech investors should put these top 2 ASX stocks on the watchlist

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Key points

  • ASX technology stocks are capable of producing a high level of growth
  • Bailador is a technology investment fund with stakes in several leading private companies with global aspirations
  • Audinate is a leader in the audiovisual space. It is widely recognized for its audio services and works hard on the video side of the strategy

ASX technology stocks have the ability to grow quickly and achieve good profit margins due to the underlying nature of the business.

The recent sell-off in recent weeks and months has opened up potential opportunities for investors.

With that in mind, here are two under-the-radar ASX technology sharing ideas:

Bailador Technology Investments Ltd (ASX: BTI)

This company is a development capital fund. It is focused on the technology sector, actively managed by an investment team. Bailador offers investors exposure to a portfolio of IT companies with addressable global markets.

The companies that are part of the portfolio are in the “expansion phase”. Some of the portfolio companies are Siteminder Ltd (ASX: DTS), Straker Translations Ltd (ASX: STG), Instaclustr, Rezdy, Access Telehealth, Standard Media Index and Nosto.

  • Siteminder is a global leader in hotel management and the distribution of online accommodation reservations.
  • Instaclustr is an open source data platform for cloud-based solutions that require massive scale.
  • Straker is one of the fastest growing digital translation service providers in the world.
  • Rezdy is an online channel manager and tour and activity booking platform.
  • Access Telehealth is a telehealth platform enabling Australians to access healthcare services.
  • Standard Media Index is a big data aggregation and analysis platform with exclusive access to ad spend data.
  • Nosto is an AI-powered e-commerce personalization platform.

Bailador remains committed to a portfolio of around 10 to 12 investments and will be patient in waiting for good opportunities and rigorous in evaluating opportunities.

ASX Technology Share typically invests $5 million or more in companies that are typically founder-led, two to six years old, with a proven business model and attractive unit economy, that generate international revenue, are exposed to a huge market opportunity and can generate recurring revenue.

Audinate is a company focused on improving the audiovisual experience for customers.

It offers the Dante audio over IP networking solution, which the company boasts of being the world leader. It is used by industries such as professional live sound, commercial installations, broadcast, sound reinforcement and recording industries.

How it works? Dante replaces traditional analog cables by transmitting audio signals to multiple locations at once using a single Ethernet cable.

The ASX Technology Share is also heavily focused on developing the video side of the business, as it will then be able to offer the complete AV package to win over customers.

Audinate recently announced the acquisition of Silex Insight’s video business. Silex manufactures video networking products for AV equipment manufacturers. It has an experienced team of eight engineers, an existing revenue base of approximately US$2.5 million and intellectual property.

The Silex team will complement the British video team in Cambridge.

In the first quarter of FY22, Audinate reported revenue of $7.6 million, up 46.1% year-over-year. Demand is at an all-time high, with backorders for chips, boards and modules. However, component shortages are expected in the second half of FY22.

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