Key Findings

• Tech-related ASX stocks saw impressive triple-digit growth in FY24.
• Gentrack (ASX: GTK), DUG Technology (ASX: DUG), and Bravura Solutions (ASX: BVS) excelled with significant share price increases.
• These stocks show potential for continued growth due to increasing revenues and strategic expansions.

In FY24, several tech-related ASX equities saw triple-digit growth, yielding impressive returns. These tech stocks performed exceptionally well, considering that other ASX stocks increased by 8.3% in FY24. Technology may be the sector with the greatest potential for growth among other stocks due to the intangible nature of the software, many businesses in the industry provide software to other businesses with significant profit margins. Software can be instantaneously duplicated, but physical things require manufacturing, shipping, and storage. 

This is another reason why they would be able to provide significant income growth. Here are three of the top-performing ASX software stocks for FY24. As usual, keep in mind that past performance does not guarantee future results, and the price of a stock is driven by a range of factors that can not all be captured in a single article. Nevertheless, there is strong reason to believe that these stocks will perform well in the coming months. 

Gentrack Group Ltd (ASX: GTK)

The share price of Gentrack increased by 140% in the year ending June 30, 2024. Note that there are still a few months left in Gentrack's 2024 fiscal year, which ends on September 30, 2024. Airports and utilities such as electricity and water can purchase software from Gentrack to ensure that they run effectively. 

Returning travellers to airports, where expenditures are made on upgrades and initiatives, tend to have a positive benefit on the organisations’ revenues. Additionally, Gentrack is gaining clients, which should support demand for their services over the long run. 

Gentrack increased its guidance and revealed a 21% increase in sales to $102 million in the latest result, covering the first half of the year. Its projection for FY24 has changed from expecting revenue of at least $170 million to approximately $200 million for the current fiscal year. Furthermore, the earnings before interest, tax, depreciation, and amortisation (EBITDA) is projected to increase $23.5 million and $26.5 million.

DUG Technology Ltd (ASX: DUG)

Until June 30, 2024, DUG Technology's shares increased by 136% in a year. The company offers a range of software-related services such as  "Analytical software development, big-data services, and reliable, green, high-performance computing (HPC)". The most recent news from a company typically garners the greatest attention from the market. The company’s share price for the first half of the year increased 39% year over year to US$17.6 million, while EBITDA increased 24% to US$4.6 million.

Additionally, US$14.6 million in new service projects were approved in the three months ending March 31, 2024, bringing the overall services order book to US$43.1 million as of March 31, 2024—a 6% increase from December 31, 2023. 

The corporation also disclosed its intentions to launch a new division in the Middle East after discovering a "great deal of opportunity" in Abu Dhabi.

Bravura Solutions Ltd (ASX: BVS)

In the period ending June 30, 2024, the share price of Bravura Solutions increased by 130%. Bravura is a top supplier of software solutions for the fund's administration, life insurance, and asset management sectors. The FY24 first-half result for the ASX tech share showed growth and a comeback, with sales rising 7.4% to $127 million. Meanwhile, EBITDA increased by 11.5% to $7.9 million, and cash EBITDA generated positive cash EBITDA of $0.3 million, bringing it back to profitability. 

Net profit after tax, or NPAT, increased by $12.6 million to $1.7 million in loss. Bravura now expects its transformation plan to save $40 million in gross cost-out, while projecting revenue for FY24 to be roughly the same as FY23. The stock looks promising, especially for investors who are looking for value in the tech sector. 

The software sector is important especially as the AI revolution is taking hold across a range of industries. However, it is important to pick the right stocks to leverage the tech revolution and this article provides a snapshot of three stocks to consider for investors who are targeting the tech sector. Not only have these stocks performed well in the last quarter, but they equally show promising potential to outperform in the coming months.