I think the Australian share market has a number of quality small cap shares that could be destined for big things.
Three that have caught my eye in 2019 are listed below. Here's why I think they are worth considering:
Straker Translations (ASX: STG)
Straker Translations is a translation services platform provider which uses a combination of artificial intelligence and human intelligence to provide efficient language translation services at scale. Demand for its offering has been growing strongly, leading to the company recently posting a 44% increase in full year revenue to NZ$24.6 million. I expect more of the same in FY 2020, especially given its recent acquisition of On-Global. This acquisition gives Straker access to a Spanish translation market estimated to be worth NZ$500 million per year.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies is a medical technology company which provides software that uses artificial intelligence imaging algorithms that assist with the early detection of breast cancer. It was also a strong performer in FY 2019, growing its annual recurring revenues materially. This strong performance allowed the company to recently raise $50 million via a placement and institutional entitlement offer. The proceeds will be used to fund the acquisition of US-based MRS Systems and further organic growth.
Xref Ltd (ASX: XF1)
Xref is a growing human resources technology company. Its platform allows prospective employers to conduct pre-employment reference checks on candidates via an online candidate-referencing system. Xref counts a wide range of big-name companies as customers such as Bunnings, Qantas Airways Limited (ASX: QAN), and Westpac Banking Corp (ASX: WBC). The solid demand for its offering means the company has recently seen its client acquisition costs and average revenue per account now align. This means that it is on the verge of becoming cash flow break-even, which is a major milestone for a small cap tech company.
