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3 exciting small cap ASX shares to watch in 2020

I think the Australian share market is home to a good number of small cap shares that have the potential to grow materially larger in the future.

While history shows that not all small caps will ultimately deliver on their potential, I think there are a number of shares that have what it takes to do so.

With that in mind, here are three small cap ASX shares I would watch closely in 2020:

Dubber Corp Ltd (ASX: DUB)

Dubber is an Australian software company developing cloud-based technologies so that businesses and corporate clients can record, manage and analyse their phone calls and communications. In FY 2019 its revenues grew by 132% to $7.4 million thanks to a 222% increase in active customers. Although its recent first quarter update was a touch underwhelming, this appears to have been a timing issue. The remainder of FY 2020 looks set to be far stronger, making it one to watch.

Straker Translations Ltd (ASX: STG)

Straker Translations is a translation services platform provider that uses a combination of artificial intelligence and human intelligence to provide highly efficient language translation services at scale. Once again, it enjoyed very strong demand for its services in FY 2019. This led to it reporting an impressive 44% increase in revenue to NZ$24.6 million. The good news is that it has started FY 2020 just as strongly. It recently revealed first quarter cash receipts growth of 38%.

Whispir (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. 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. Pleasingly, this solid form has continued in FY 2020. In the first quarter it reported Annualised Recurring Revenue of $34.5 million. This was a 10% increase since the end of June and puts Whispir ahead of its prospectus forecast.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Straker Translations 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.