The weak U.S. jobs data which signalled a cooling labor market raised the expectations of beginning of rate cuts by Fed at its meeting this month. The tech sector giving a cheer has brought these ASX stocks into focus to buy now with a long term horizon.
Best ASX Growth Shares to Watch as Tech Surge Follows Rate Cut Hopes
Life360 Inc (ASX: 360)
Codan Limited (ASX: CDA)
Zip Co Limited (ASX: ZIP)
posted record results for Q2 FY2025. Total revenue went up 36% year on year to about U$115.4 million. The main driver was subscription revenue which came in at U$88.6 million, a 35% rise from the previous year. Core subscriptions alone were U$82.9 million, up 38% from the last year. Annualized Monthly Revenue grew 36% to U$416.1 million. The company swung into profit with net income of U$7 million compared to a loss of U$11 million in the same quarter last year. Adjusted EBITDA almost doubled to U$20.3 million. Operating cash flow was U$13.3 million, making it the ninth straight positive quarter. Cash and cash equivalents at the end of quarter stood at U$434.2 million which was helped by the successful U$320 million convertible notes issue. On the operations side, Monthly Active Users were up 25%. Average Revenue per Paying Circle rose 8% to U$135.42. Going forward Life360 wants to grow its advertising platform with more location based formats, get better monetisation from free users, push the triple tier membership model into more international markets.
posted very strong results in FY2025. Group revenue went up 22% to A$674.2 million, helped by solid results in both Communications and Minelab. Communications revenue grew 26% to A$413.5 million, with a segment profit of A$107.9 million and a record orderbook of A$253 million. EBIT climbed 28% to A$146.0 million and NPAT was higher by 27% to A$103.5 million from the previous year. EPS also increased 27% to 57.1 cents. Group NPAT margin improved to 15.3% compared to 14.8% in FY2024. Cash flow from operations helped bring down net debt to A$78.3 million and dividends also went up 27% to 28.5 cents per share which were fully franked. It also secured new contracts like a 10 year A$19 million Zetron utility contract and a 10 year A$14 million public safety contract. For FY2026, Codan is aiming for Communications revenue growth of 15–20% supported by A$155 million already in the orderbook.
Zip Co Limited (ASX: ZIP)
delivered very strong results in FY2025. The total transaction volume went up 30.3% to about A$13.1 billion compared to A$10.1b in FY2024. The statutory NPAT jumped to A$79.9 million from only A$5.7m last year while underlying NPAT turned positive to A$49.7 million from a loss of –A$19.7m in FY2024. Active customers touched 6.3 million, merchants expanded to 85.5k and transactions increased 22% to 93.0 million. The balance sheet got stronger too with net assets of A$709.5 million compared to that of A$398.5 million last year. During the year the company launched its AI chatbot Zigi and added Google Wallet and Chrome Autofill features and set up a A$400 million warehouse facility. For the future management is thinking about a dual listing on Nasdaq, expanding Pay in Z products including a Pay in 2 launch in FY26 and putting more focus on AI innovations under the Fearless Frontiers program to capture long term growth in both US and ANZ.
(Source: Company Announcements)
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