I think the Australian share market is home to a number of small tech companies with the potential to grow significantly in the future.
Three of my favourites in the space are listed below. While they may not necessarily be ready for an investment, I certainly would want them to be on my watchlist.
Here's why I think they are among the best on the ASX:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a developer and seller of cloud-based sales enablement software with 300+ customers in more than 50 countries. I have been very impressed with the way the company has grown its top line this year. In the first-half of FY 2018 Bigtincan achieved revenues of $6 million, up 40% on the prior corresponding period. This strong growth recently allowed the company to raise $15 million through a capital raising at 35 cents per share. The funds will be used to acquire Zunos Technologies for $3.25 million, fund another potential acquisition, and for working capital needs.
ELMO Software Ltd (ASX: ELO)
Arguably the best small cap tech share on the ASX at the moment is this cloud-based human resources and payroll management software solutions company. Demand for ELMO's software has been growing at a very quick rate, leading to its customer base growing to 1,002 organisations across 132 different industries. Thanks to this rising demand and earnings accretive acquisitions, ELMO's management expects the company to deliver a 370% jump in EBITDA to $5.7 million in FY 2018.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a fast-growing digital workplace platform provider which has been targeting a leadership position in the massive artificial intelligence market. I've been very impressed at the progress the company has made and believe it is well worth watching closely. A recent deal with key Microsoft sales and marketing vendor N3 and the doubling of its sales team could be key drivers of growth in FY 2019.
