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Add these exciting small cap ASX shares to your watchlist

If you’re considering investing in small cap shares, then you’re in luck. This is because the Australian share market currently has a good number of promising options at the small end of the market.

Three that I think are worth watching very closely in 2020 are listed below. Here’s why I have them on my watchlist:

Audinate Group Limited (ASX: AD8)

I think this leading provider of digital audio visual networking technologies is worth watching very closely. Its products are becoming the de facto standard in the music and audio industry. This, combined with the significant expansion of its product offering and increased adoption by Original Equipment Manufacturers, has led to Audinate generating very strong sales and profit growth. For example, in FY 2019 it delivered a 44% increase in revenue to $28.3 million and a 395% rise in EBITDA to $2.8 million. I continue to believe that it is well-placed to build on this and achieve similarly strong growth in FY 2020.

Dubber Corp Ltd (ASX: DUB)

Dubber is a fast-growing Australian software company that develops cloud-based technologies for contact centres. These technologies allow businesses to record, manage and analyse their phone calls and communications. Dubber is also leveraging AI to give its users the ability to analyse the emotions and stress levels of a caller. Demand for its offering has been growing strongly, leading to a massive 222% increase in active customers in FY 2019. This ultimately helped the company post a 132% jump in revenue to $7.4 million. I expect more strong growth from Dubber in FY 2020.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. I think it has a lot of potential and could be worth keeping a very close eye on in 2020. It provides an industry-leading software platform that allows organisations, such as Disney and Foxtel, to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Strong demand for its platform led to it generating revenue of $31.1 million in FY 2019. This was a 12% increase and beat its prospectus forecasts. Overall, I remain confident there will be more of the same this year.

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 June 30th

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 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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