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4 exciting small cap tech shares to watch this month

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I’m a big fan of small cap shares and believe the Australian share market is home to a large number with the potential to grow meaningfully in the future.

Four that I think are worth watching very closely are listed below. Here’s why I like them:

Citadel Group Ltd (ASX: CGL)

Citadel is one of my favourite options in the tech sector right now. It is a fast-growing software and services company specialising in IT security and data management. It 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.

Megaport Ltd (ASX: MP1)

In FY 2018 this provider of elasticity connectivity and network services delivered an 85% increase in revenue to $19.8 million. This was driven by its growing footprint and a 41% increase in customer numbers to 1,038. These customers include many blue chip names such as Aon, Flight Centre Travel Group Ltd (ASX: FLT), and Vodafone.

Redbubble Ltd (ASX: RBL)

Another up and coming tech share is Redbubble. It is an ecommerce company providing a global online marketplace that connects independent artists with customers. In FY 2018 the company had a strong year and grew revenue by 29.7% to $182.8 million. The strong result was driven by the winning combination of rising customer numbers and increasing repeat customers. Management has forecast revenue growth of 30% on a constant currency basis in FY 2019.

Serko Ltd (ASX: SKO)

Serko is a relatively new listing on the Australian share market. It is a provider of travel and expense technology solutions to a growing number of companies including industry giant Flight Centre. The company recently signed a letter of intent with Flight Centre to develop unique product offerings based on Serko’s travel management technology. This year management expects revenue growth in the range of 20% to 30%.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. The Motley Fool Australia owns shares of Citadel Group Ltd and REDBUBBLE FPO. 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.

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