It may not be the biggest tech sector in the world, but the ANZ region’s tech sector is home to a good number of companies with significant potential.
Three small cap ASX tech shares that have been growing strongly this year are listed below.
Here’s what you need to know about them:
Damstra Holdings Ltd (ASX: DTC)
Damstra is a growing integrated workplace management solutions provider. The company’s cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Demand for its offering has been growing strongly in recent years and this has continued in FY 2021. For example, in the first quarter, Damstra revealed record first quarter revenue, cash receipts, and operating cash flow. This impressed analysts at Morgan Stanley, who put an overweight and $2.00 price target on the company’s shares.
MyDeal.com.au Limited (ASX: MYD)
MyDeal.com.au is a recently listed online retail marketplace provider with a focus on furniture, homewares, appliances, technology, baby products, and hardware. It has been a positive performer in FY 2021, delivering first quarter gross sales growth of 317% to $56.67 million. Management advised that this was underpinned by the shift to online shopping and a 268% increase in active customers to 669,897. Looking ahead, the company intends to use the $40 million raised from its IPO to drive future growth. This includes growing its private label business, investing in its proprietary technology, and investing in advertising to grow its customer base and brand.
Finally, Whispir is a software-as-a-service communications workflow platform provider which allows businesses and governments to deliver two-way interactions at scale using automated multi-channel communication workflows. Its platform was used to great effect during the height of the pandemic when 22 government departments used it for COVID-19 communications. Management estimates that the Workflow Communications platform as a Service market could reach US$8 billion per year by 2024. This compares to the revenue of $39.1 million it recorded in FY 2020, which was up 25.5% year on year.
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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 and recommends Whispir Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended 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.