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5 exciting small cap shares that could be destined for big things

growth shares

I believe the Australian share market is home to a great number of small cap shares with bucket loads of potential.

Listed below you will find five shares which I think are amongst the best on offer at the small end of the market right now.

Here’s why I think you should add them to your watchlist today:

Audinate Group Limited (ASX: AD8)

Audinate is a fast-growing provider of digital audio-visual networking technologies. I’m a big fan of the company due to its award-winning Dante audio over IP networking solution. Dante is used extensively across the professional live sound, commercial installation, broadcast, public address, and recording industries globally. Strong demand has driven impressive sales growth in FY 2019.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software provider which offers its customers a unified platform to streamline processes for employee administration, recruitment, onboarding, learning, performance, remuneration, compliance training and payroll. It has been growing at a very strong rate since its IPO thanks to a combination of organic growth and the benefits of acquisitions.

LiveTiles Ltd (ASX: LVT)

LiveTiles is a digital workplace platform provider which I think is worth watching very closely. Its increasingly popular software allows users to easily create dashboards, employee portals, and corporate intranets. The company has strong ties with global tech giant Microsoft and counts many blue chip companies as customers. Year to date the company has tripled its annualised recurring revenue to $34.5 million and is targeting $100 million by the end of June 2021.

Straker Translations Ltd (ASX: STG)

Straker Translations is a translation services platform provider which uses a combination of artificial intelligence and human intelligence to provide highly efficient language translation services at scale. It recently released its full year results and revealed an impressive 44% increase in revenue to NZ$24.6 million. This was clearly a strong result, but is still only a fraction of a global market estimated to be worth US$66 billion per annum by 2022.

Xref Ltd (ASX: XF1)

Xref is a Sydney-based human resources technology company that allows prospective employers to seamlessly and professionally conduct pre-employment reference checks on suitable candidates via an online candidate-referencing system. I’ve been impressed with the company’s strong growth in FY 2019 and feel its blue chip customer base is a testament to the quality of its offering. Xref counts the likes of Bunnings, Qantas Airways Limited (ASX: QAN) and Westpac Banking Corp (ASX: WBC) as customers.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

James Mickleboro owns Westpac shares. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Elmo Software. The Motley Fool Australia has recommended Straker Translations. 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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