Although the Australian tech sector pales in comparison to those in the United States and China, that doesn't necessarily mean there aren't any quality up and coming tech companies on the rise inside it.
Three exciting small cap tech shares listed on the Australian share market that I think investors should be better acquainted with are 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. The company is perhaps best known for its Dante media networking technology which has been adopted by the leading manufacturers and professionals in the audio-visual industry. Its success was a key driver in the company's strong performance in FY 2018. Audinate achieved revenue of $19.7 million, up 30% on the prior corresponding period. Pleasingly, this strong growth allowed the company to post positive EBITDA of $0.6 million for the period, compared to its prospectus forecast of a $1.2 million loss.
Citadel Group Ltd (ASX: CGL)
Citadel Group is a fast-growing software and services company which specialises in IT security and data management. Last month the company posted record revenues of $108.5 million, up 9.8% on the prior period, and a 26% increase in net profit after tax to $19.4 million. A key driver of this growth was the increasing popularity of its Citadel-IX cloud-based enterprise information management platform. The platform allows users to securely access or transfer proprietary and sensitive information remotely and has unsurprisingly attracted a large number of government customers. Given the importance of data security I expect the platform to underpin the company's growth in the coming years.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a fast-growing digital workplace platform provider with a focus on the artificial intelligence market. The company's platform aims to provide solutions that are intuitive, customisable, and that can offer businesses ways to increase collaboration and efficiency amongst their employees. In FY 2018 it saw its annualised recurring revenues increase by 275% to $15 million. I expect similarly strong growth in FY 2019 thanks to its partnership with Microsoft and the engagement of a dedicated sales force.
