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Are these exciting small cap tech shares destined for big things?

This afternoon the Altium Limited (ASX: ALU) share price is up over 2% to $23.16,

This small gain means the company now has a market capitalisation in excess of $3 billion once again.

The printed circuit design software provider hasn’t always been a multi-billion-dollar company, though. In fact, a little over six years ago Altium had a market capitalisation of just $40 million.

You don’t have to be a mathematician to work out that if you’d invested $25,000 in its shares at that point, you’d be very rich today.

While very few small cap tech shares have this sort of success, I believe there are a few trading on the Australian share market right now that could be destined for big things.

Three to watch in the coming years are as follows:

ELMO Software Ltd (ASX: ELO)

ELMO is a leading provider of cloud-based human resources and payroll software solutions. Due to strong demand for its offering and earnings accretive acquisitions, the company reported revenue of $31.9 million and EBITDA of $5.7 million in FY 2018. Both these figures were up significantly on the prior corresponding period. The good news is that this is only scratching at the surface of its market opportunity which management estimates to be worth $1.7 billion per annum in the ANZ region.

LiveTiles Ltd (ASX: LVT)

I believe 2019 could be a big year for this digital workplace platform provider. Last year the company engaged a specialist sales force and the early results have been very promising. In the first quarter of FY 2019 LiveTiles reported a 272% increase in annualised recurring revenue on the prior corresponding period. I believe there could be more strong growth in the coming quarters, especially if it can successfully leverage its close working relationship with tech giant Microsoft.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap tech company which has been growing at an explosive rate is Volpara Health Technologies. It provides a breast imaging analytics and analysis software which continues to grow in popularity. At the end of FY 2018 the software had a 3.2% share of the U.S. breast screening market. Management is aiming to grow its share to 9% by the end of FY 2019 and I would not be surprised to see it achieve this due to the quality of the software and the significant expansion of its sales force.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ELMOSFTWRE FPO. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended ELMOSFTWRE 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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