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.
And don't miss this growing tech share that could be destined for big things in 2019 and beyond.
Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.
This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again. This is your chance to get in early.
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 and ELMOSFTWRE FPO. The Motley Fool Australia owns shares of 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.