I think there are a number of shares at the small end of the market that have significant long term growth potential.
Three which I think are well worth keeping a close eye on are listed below. Here's why I like them:
Audinate (ASX: AD8)
Audinate is a provider of digital Audio-Visual networking technologies and the company behind the award-winning Dante audio over IP networking solution. Thanks to strong demand for Dante across the world in the professional live sound, commercial installation, broadcast, public address, and recording industries, the company delivered a 60% increase in revenue to $14.2 million during the first half of FY 2019. Management appears positive on its prospects in the second half, saying: "We continue to be optimistic about Audinate's growth prospects for the remainder of FY19 and are well positioned to roll out the new product initiatives we have in progress."
ELMO Software Ltd (ASX: ELO)
ELMO is cloud-based human resources and payroll software provider offering customers a unified platform to streamline processes for employee administration, recruitment, onboarding, learning, performance, remuneration, compliance training and payroll. In the first half of FY 2019 ELMO posted a 62% jump in revenue to $17.7 million thanks to an increase in its customer base to 1,129 organisations compared to 859 in the prior corresponding period. And due to positive organic growth and increased traction in the lower mid-market segment, management is confident that its full year revenue growth will be equally strong.
LiveTiles Ltd (ASX: LVT)
Another small cap tech share to watch is LiveTiles. It is a digital workplace platform provider which has been growing at an explosive rate over the last couple of years. In the first half of FY 2019 the company posted a 232% increase in annualised recurring revenue (ARR) to $22.9 million. Pleasingly, management expects this strong growth to continue and is targeting an ARR of $100 million by the end of June 2021. This is expected to be achieved thanks to the engagement of a specialist sales force, ongoing high-impact campaigns, and joint-marketing initiatives with tech giant Microsoft. Another driver could be the launch of its LiveTiles Intelligent Meeting Suite. This is a world first artificial intelligence meeting solution which management believes will revolutionise meetings and collaboration in the workplace.
