Motley Fool Australia

3 small cap ASX tech shares growing at a rapid rate

A man drawing an arrow on a growth chart, indicating a surging share price
Image source: Netflix

At the small end of the market there are a number of companies which are growing at a very strong rate.

Three small cap tech shares that investors might want to get better acquainted with are listed below. Here’s how they have been performing:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a growing provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction. Bigtincan has been experiencing strong demand for its platform in 2020 from some major companies such as Nike and Red Bull. This led to it growing its annualised recurring revenue (ARR) by 53% year on year to $35.8 million in FY 2020. Pleassingly, more of the same is expected in FY 2021, with management providing guidance for ARR of $49 million to $53 million. This is still scratching at the surface of a sales engagement platform market estimated to be worth $6 billion a year by 2021.

ELMO Software Ltd (ASX: ELO)

ELMO is a cloud-based human resources and payroll software company. Its increasingly popular software streamlines a range of processes such as employee administration, recruitment, remuneration, and payroll through a single a unified platform. ELMO currently has operations in both the ANZ and UK markets, which management estimates are worth $2.4 billion and $6.8 billion per year, respectively. In FY 2021, ELMO is aiming to deliver ARR in the range of $72.5 million to $78.5 million. This will be up 31.6% to 42.4% from FY 2020’s ARR of $55.1 million.

People Infrastructure Ltd (ASX: PPE)

People Infrastructure is a leading workforce management company. It provides innovative solutions to workforce challenges. Although the company was impacted by the pandemic in FY 2020, it was still able to deliver strong earnings growth. For the 12 months ended 30 June, the company reported normalised EBITDA of $26.4 million. This was up 49.2% on the prior corresponding period. And while it hasn’t been able to provide guidance for FY 2021, management remains focused on driving growth both organically and inorganically.

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 and recommends BIGTINCAN FPO and Elmo Software. The Motley Fool Australia has recommended BIGTINCAN FPO, Elmo Software, and People Infrastructure 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.

Related Articles…

Latest posts by James Mickleboro (see all)