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3 exciting small cap ASX tech shares to watch

At the small end of the market I believe there are a number of tech shares that have the potential to grow into much larger entities in the future.

Three that I think are worth watching very closely are listed below. Here’s why:

Audinate Group Limited (ASX: AD8)

Audinate is the company responsible for the award-winning Dante audio over IP networking solution. It is used extensively across the world in the professional live sound, commercial installation, broadcast, public address, and recording industries. Demand for Dante has been growing strongly and led to the company reporting a 60% increase in half year revenue to $14.2 million in the first half of FY 2019. Pleasingly, half year EBITDA came in at $1.7 million, which was up significantly from $0.1 million in the prior corresponding period. This was driven by the strong revenue growth combined with operating leverage in the cost base flowing through.

LiveTiles Ltd (ASX: LVT)

LiveTiles is a digital workplace platform provider which has been growing at an impressive rate over the last couple of years. This strong growth has continued in FY 2019 with the company posting a massive 232% increase in annualised recurring revenue (ARR) to $22.9 million at the end of the period. Pleasingly, management expects more of the same in the second half and through to the end of FY 2021. In fact, thanks to its engagement of a specialist sales force, ongoing high-impact campaigns, and joint-marketing initiatives with global tech giant Microsoft, management aims to grow its ARR to at least $100 million by the end of June 2021.

Straker Translations (ASX: STG)

Straker Translations is a global technology driven translation services platform which is using artificial intelligence (AI) and human intelligence to provide efficient language translation services at scale. Straker’s cloud-based platform manages the end-to-end translation process, leveraging machine translation technology to create a first draft translation and subsequently matching the customer’s content with one or more of the approximately 13,000 crowd-sourced human freelance translators for refinement. Management sees an opportunity in consolidating a fragmented global translation services market that relies largely on traditional and slow manual processes.

Whilst I think those shares are best to be kept on your watchlist for now, here are three growth shares that I think are ready to be bought.

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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. 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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