If you're a fan of small cap shares, then you're in luck because I think there are a number on the market at the moment that could have bright futures ahead of them.
Three small caps that I think are worth adding to your watchlist are listed below:
Audinate (ASX: AD8)
Audinate is a leading provider of professional digital audio networking technologies globally. Its key product is the award-winning Dante platform which distributes digital audio signals over computer networks and is designed to bring the benefits of IT networking to the professional AV industry. Demand for Dante from professional live sound, commercial installation, broadcast, public address, and recording industries globally has been growing strongly, leading to impressive sales growth over the last couple of years.
Citadel Group Ltd (ASX: CGL)
Another small cap share to watch is this software and services company. Citadel specialises in secure information management in complex environments. The company is currently transitioning its sales focus towards scalable solutions that provide annuity revenue streams. Whilst this has led to a slowdown in overall sales growth, the company has been growing strongly in the right areas. For example, in the first half of FY 2019 the company reported a sizeable 39.1% increase in its SaaS revenue to $16.8 million. Given the growing importance of data security and the quality of its Citadel-IX product, I expect this strong growth to continue in the second half and beyond.
Serko Ltd (ASX: SKO)
A final small cap share to look at is Serko. It is the leading online travel booking and expense management provider in the ANZ region, counting the likes of Flight Centre Travel Group Ltd (ASX: FLT) and Telstra Corporation Ltd (ASX: TLS) amongst the 6,000+ corporate customers using its products to help manage their corporate travel programs and make sense of their corporate expenses. Demand has been growing strongly for its offering, leading to management providing full year revenue growth guidance of between 20% and 30%.
