The Australian and New Zealand tech sectors may not have titans like Apple and Amazon that are found over in the United States, but I believe they are home to a good number of companies that have strong long-term growth potential.
Three small cap tech shares that I think are worth keeping a close eye on are listed below. Here's why I like them:
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 best known for its flagship Dante product. This product allows its users to set up complex audio networks with relative ease. Demand for its products has been strong, helping the company grow revenue by 30% to $19.7 million in FY 2018. With demand showing little sign of slowing and the company well positioned to capitalise on market growth and increased penetration, I believe there could be similarly strong growth again this year.
LiveTiles Ltd (ASX: LVT)
LiveTiles is an exciting digital workplace platform provider which has a focus on the artificial intelligence market. The LiveTiles platform provides solutions that are intuitive, customisable, and can offer businesses ways to increase collaboration and efficiency amongst their employees. Last year it grew annualised recurring revenues by 275% to $15 million thanks partly to its partnership with Microsoft. I expect FY 2019 could be equally strong considering the engagement of a dedicated sales force and further development of the Microsoft and partner channels.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is healthcare technology company specialising in breast imaging analytics and analysis software. Its shares have gone gangbusters over the last 12 months and hit an all-time high today, bringing its market capitalisation up to $211 million. Investors have been fighting to get hold of shares since it received a new FDA 510(k) clearance for technologies used in Volpara Enterprise software and the Volpara Density clinical application. This will allow the company to introduce its impressive Volpara Live! System which management believes opens a new and untapped product market. I believe this puts the company in a position to continue its remarkable revenue growth. Last year it grew its annual recurring revenues by a sizeable 223%.
