If you're looking to add some small cap ASX shares to your portfolio, then you might want to take a look at the ones listed below.
I believe all three have strong growth potential and are well worth adding to your watchlists:
ELMO Software Ltd (ASX: ELO)
ELMO Software is a $590 million human resources and payroll software company. It provides a unified cloud-based platform that streamlines a wide range of processes for businesses. Its software has been growing in popularity over the last few years and this has continued to be the case in FY 2020 despite the pandemic. This year ELMO Software expects to report annualised recurring revenue (ARR) of $55 million to $57 million. This represents a year on year increase of 20% to 24%. The good news is that this is still only scratching at the surface of its ANZ market opportunity. It also has the option of expanding internationally in the future.
Mach7 Technologies Ltd (ASX: M7T)
Mach7 is a $210 million medical imaging data management solutions provider. The company's software is used by healthcare organisations to create a clear and complete view of the patient. This then helps users make informed diagnoses, reduce care delivery delays and costs, and improve patient outcomes. During the first half of FY 2020, Mach7 reported revenue of $9.1 million. This is materially less than its total addressable market, which is estimated to be worth US$2.75 billion.
Whispir (ASX: WSP)
Whispir is a $400 million software-as-a-service communications company which provides an industry-leading software platform. Its platform allows businesses to deliver actionable two-way interactions (SMS, voice messages, email) at scale using automated multi-channel communication workflows. Demand for its offering from new and existing customers has been strong in FY 2020, thanks partly to the pandemic. This led to Whispir reporting ARR growth of 35.7% to $42.2 million for the year.
