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3 growing small cap ASX shares to watch in October

If you’re a fan of small cap shares like I am, then you might want to keep a close eye on the three shares that are listed below.

I think all three have a lot of potential and would suggest investors add them to their watchlists today. Here’s why:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider which has been a strong performer in recent years thanks to the success of its award-winning Dante audio over IP networking solution. In FY 2019 Audinate delivered a 44% increase in revenue to $28.3 million and 395% rise in EBITDA to $2.8 million. This was driven by the significant expansion of Dante product offering and increased adoption by Original Equipment Manufacturers (OEMs). Due to its industry-leading position, sizeable market opportunity, and new product launches, I believe it still has a significant runway for growth.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a workforce management company that provides solutions to the management of contractors. In FY 2019 it continued its strong form and posted a 26.8% increase in revenue to $278.15 million and a 36.8% increase in normalised EBITDA to $17.8 million. This strong result was driven by a 22.7% increase in contract hire revenue to $255.9 million and was supported by solid growth across almost all of the company’s other segments.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. It provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. This allows organisations to manage, automate, and optimise their communication processes without requiring specialised technical expertise. Demand for its offering has been strong, leading to the company outperforming its IPO forecast in 2019 with revenue up 12% to $31.1 million. It counts the likes of Disney and Foxtel as customers.

5 stocks under $5

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*Extreme Opportunities returns as of June 5th 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO, People Infrastructure Ltd, and Whispir Ltd. 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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