MENU

5 explosive small cap tech shares to watch

While most investors will now be fully aware of tech stars Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) after their earnings season heroics, I suspect they may be less familiar with the five small cap tech shares listed below.

Here’s why I think they are worth watching:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio company that develops hardware and software solutions for the professional audio-visual industry. Its flagship product, Dante, allows users to easily set up even complex audio networks. In FY 2018 the company grew revenue by 30% to $19.7 million and achieved EBITDA of $0.6 million. The latter compares to its prospectus forecast for a loss of $1.2 million.

Citadel Group Ltd (ASX: CGL)

Citadel Group is a fast-growing software and services company which specialises in IT security and data management. Citadel delivered record revenues of $108.5 million and a 26% increase in net profit after tax to $19.4 million in FY 2018 thanks partly to the growing popularity of its Citadel-IX cloud-based enterprise information management platform.

ELMO Software Ltd (ASX: ELO)

ELMO Software is a leading provider of integrated cloud human resources and payroll software solutions. In FY 2018 ELMO achieved pro forma revenue of $31.9 million and pro forma SaaS revenue of $29.8 million. This beat management’s upgraded guidance and meant growth of 36.4% and 37.2%, respectively, on the prior year.

LiveTiles Ltd (ASX: LVT)

LiveTiles is a fast-growing digital workplace platform provider with a focus on the artificial intelligence market. In FY 2018 it grew annualised recurring revenues by 275% to $15 million thanks partly to its partnership with Microsoft. Management expects strong growth in FY 2019 due to the engagement of a dedicated sales force and further development of the Microsoft and partner channels.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara Health Technologies is a breast imaging analytics and analysis software specialist. The growing popularity of its product means that management is targeting a 9% share of the U.S. breast screening market in FY 2019, up from 3.7% at the end of FY 2018. Volpara grew its annual recurring revenues by an impressive 223% last year.

ASX Small Cap Tech Share – Real Winner from the World Cup

Earlier this year, millions of Australians set alarms and watched the world's biggest sporting event, the World Cup, play out. But did you know there was another Australian representative quietly succeeding as the world watched?

It's the start-up who have positioned themselves as the global leader in sports analytics. Motley Fool's resident tech expert has already upgraded the recommendation of this company's stock to a rating of simply "Buy More".

Click here to access this share. It's completely FREE!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO, ELMOSFTWRE FPO, and VOLPARA FPO NZ. The Motley Fool Australia owns shares of Altium, Appen Ltd, and Citadel Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.