If you're a fan of small cap shares then you're in luck because there are a number on the Australian share market right now which I believe have very bright growth prospects.
Only time will tell whether they are the next Afterpay Touch Group Ltd (ASX: APT) or Appen Ltd (ASX: APX), but I think investors should watch them very closely. They are as follows:
LiveTiles Ltd (ASX: LVT)
LiveTiles is a digital workplace platform provider which allows users to easily create dashboards, employee portals, and corporate intranets that can be further enhanced with artificial intelligence and analytics features. It has been experiencing increasingly strong demand for its offering, which has led to its annualised recurring revenue (ARR) more than tripling during the first three quarters of FY 2019 to $34.5 million. I believe this has put the company in a position to achieve its target of ARR of $100 million by the end of June 2021.
Serko Ltd (ASX: SKO)
Another small cap share that has performed very well in FY 2019 is this leading online travel booking and expense management provider. Thanks to strong demand for its services from blue chips such as Microsoft and Telstra Corporation Ltd (ASX: TLS), last week Serko reported full year total operating revenue of $23.4 million. This was a 28% increase on FY 2018's result and came in at the upper end of its guidance range. The good news is that management expects more of the same in FY 2020 and has provided total operating revenue growth guidance of between 20% and 40%.
Straker Translations (ASX: STG)
Straker Translations is a translation services platform provider which uses artificial intelligence and human intelligence to provide efficient language translation services at scale. The company'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 of thousands of crowd-sourced human freelance translators for refinement. On Tuesday the company released its full year results and revealed a 44% increase in revenue to NZ$24.6 million. A key driver of this growth was increasing demand from existing customers. Repeat revenue grew 53.3% during FY 2019, which I believe is a testament to the quality of its offering.
