Are you looking for some exposure to the small side of the market? If you are, then the three ASX small cap shares listed below could be worth a closer look.
Here's why I think they have bright future ahead of them:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a $450 million provider of sales enablement software. This clever software provides businesses with the information, content, and tools that help sales teams sell more effectively. The company has experienced very strong demand for its platform in recent years from a number of major companies. These are spread across over 50 countries and a diverse range of industries and sectors. In FY 2020 the company delivered a 53% increase in annualised recurring revenue (ARR) to $35.8 million. Pleasingly, it expects more of the same this year. Management is forecasting 36.9% to 48% year on year ARR growth.
ELMO Software Ltd (ASX: ELO)
ELMO is a $490 million cloud-based human resources and payroll software company. It provides a unified software platform which allows businesses to streamline a range of processes. I like the company due to its massive opportunity in the ANZ market and its option to expand internationally in the future. This is thanks to its jurisdiction agnostic platform. Another positive is that ELMO undertook a capital raising this year to fuel its future growth. Management intends to use these funds to acquire complementary businesses. But even without these acquisitions, ELMO is forecasting further strong organic growth in FY 2020. It has provided guidance for ARR of $65 million to $70 million, which represents year on year growth of 18% to 27%.
Mach7 Technologies Ltd (ASX: M7T)
A final small cap to watch is Mach7. It is a $265 million medical imaging data management solutions provider. Mach7 offers software that creates a clear and complete view of the patient. This helps users with diagnoses, reduces care delivery delays and costs, and improves patient outcomes. Management estimates that its total addressable market is worth approximately US$2.75 billion per annum. This compares to the revenue of $18.9 million it posted in FY 2020, which was more than double year on year. I feel this gives it a long runway for growth over the next decade.
