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Beaten-up: Are these 2 top ASX growth shares turnaround buys?

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Some of the leading ASX growth shares have seen their share prices fall significantly over the last few months.

A few may be dropping because they are reporting a reversal of the gains from COVID-19. But some are still reporting quick growth, it may be other factors that are causing the decline such as the Russian invasion of Ukraine or the fast pace of inflation (and expected interest rate rises).

The Cettire share price has fallen by 46% since the start of the year.

What does Cettire do? It’s a retailer of personal luxury products on its website, with more than 200,000 products from over 1,700 luxury brands.

The ASX growth share recently announced its FY22 half-year result which included a high level of growth. Sales revenue soared 181% to $113.7 million whilst the delivered (to customer) profit jumped 118% to $24.7 million. Its offering is resonating with global customers.

Management boast of the scalability of the company’s capital-light, high cash-generating business model which is helping re-invest back into the company and grow the business. Despite investing in things like marketing, the operating cash flow increased 43% to $12.3 million.

January 2022 gross revenue was up 242% year on year, showing that the rapid growth continues.

It’s working on a number of growth areas, including the launch of a mobile app which is expected to improve conversion rates over time. The launch of the beauty category will expand the company’s total addressable market.

Cettire has also announced that it’s entering the mainland Chinese market, which is being helped by a partnership with e-commerce giant JD.com.

Pointsbet Holdings Ltd (ASX: PBH)

Over the last six months, the Pointsbet share price has fallen by 63%.

Pointsbet is a growing global corporate bookmaker, with much of its attention pinned on the huge market of the USA where it is quickly expanding its presence.

Looking at some of the key numbers of sports betting in the FY22 half-year result, turnover increased by 22% to $2.3 billion and the gross win margin increased by 2.7 percentage points, which helped grow the gross win by 63% to $250.9 million. The ASX growth share’s US saw the gross win rise 299% to $70.8 million.

The overall net win increased 77% to $146.7 million.

But the company continues to announce new market access and jurisdiction launches. Areas opened during the first half will benefit over time as more customers try out Pointsbet. The company also announced a number of positives after the HY22 reporting period.

For example, on 8 February 2022, Pointsbet took its first sportsbook bet in Pennsylvania. On 27 January, Pointsbet launched iGaming operations in West Virginia.

Canada is another geographic region that the ASX growth share’s management have their eyes on. On 3 February 2022, Pointsbet Canada received approval by the Alcohol and Gaming Commission of Ontario to be licensed a sportsbook in Ontario.

However, whilst the company is in this high-growth phase, its losses are increasing. The HY22 statutory net loss worsened by 71% to $146.4 million.

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