At the small side of the tech sector I think there are a number of quality options for investors to consider.
While these shares are higher risk options, if your risk profile allows, I think they could prove to be great long-term investments if included in a diversified portfolio.
Three that I like right now are as follows:
Audinate Group Limited (ASX: AD8)
This digital audio company could be worth a closer look after its strong start to FY 2019. Audinate develops hardware and software solutions for the professional audio-visual industry. Last year the company grew its full year revenue by 30% to $19.7 million. The good news is that this strong form has continued in FY 2019 with the company recently reporting a record first quarter result. Last month Audinate reported first quarter cash collections of $6.8 million, up 51% on the prior corresponding period thanks to strong demand for its products.
Citadel Group Ltd (ASX: CGL)
I think that Citadel is one of the best small cap tech shares on the local market. Although the technology company has a number of offerings, the main attraction for me is its Citadel-IX platform. Citadel- IX is a cloud-based enterprise information management platform designed to provide users with a range of products and abilities to simplify their data management. Given how important data security is, I believe this platform has enormous potential and expect it to underpin its growth for many years to come.
ELMO Software Ltd (ASX: ELO)
Another top small cap tech share to consider is ELMO Software. It provides a cloud-based human resources and payroll software solutions that has been growing in popularity. In FY 2018 demand for its products led to ELMO achieving pro forma revenue of $31.9 million and pro forma SaaS revenue of $29.8 million. This was significantly higher than a year earlier and ahead of its prospectus forecasts. And like Audinate, this strong form has carried over into FY 2019. Management recently revealed that in the first quarter it achieved a 91% increase in quarterly cash receipts to $10.3 million.
