If your risk profile allows you to invest in small cap shares then I think the three listed below could be great options.
All three shares have been growing at an explosive rate over the last couple of years and have significant long-term growth potential.
Here's why I think they are worth considering:
ELMO Software Ltd (ASX: ELO)
ELMO is one of Australia and New Zealand's leading providers of integrated cloud human resources and payroll software solutions. Its software-as-a-service (SaaS), cloud-based platform provides businesses with a centralised approach to managing an employee's lifecycle from hire to retire. Strong demand for its services led to the company delivering impressive growth across all metrics in FY 2018. Pleasingly, this is expected to be the case in FY 2019 with management providing revenue guidance of $39.5 million, which will be a year on year increase of 24%.
Megaport Ltd (ASX: MP1)
Megaport is a provider of elastic interconnection services across a growing number of data centres globally and counts the likes of blue-chip companies such as AON, News Corp, and Breville Group Ltd (ASX: BRG) as customers. Due to the cloud computing market growing at an incredible rate and data consumption rising fast, I expand demand for its services to grow strongly in the future. Megaport has had a positive start to FY 2019 and recently reported a 20% increase in its monthly recurring revenue to $2.4 million.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a healthcare technology company providing a breast imaging analytics and analysis software which aims to more effectively indicate cancer in breasts with greater density, lifting the accuracy of diagnoses. Due to the popularity of the product, at the end of FY 2018 it had grown its U.S. market share to approximately 3.2%. Management isn't resting on its laurels and is aiming to grow its share to 9% this year. Due to its expanding footprint and the quality of the product, I believe it can achieve this target and generate another significant rise in annualised recurring revenues.
