2 exciting small cap ASX shares growing fast

Damstra Holdings Ltd (ASX:DTC) and this ASX small cap share could be ones to watch right now…

| More on:
A man drawing an arrow on a growth chart, indicating a surging share price

Image source: Netflix

It is worth remembering that all companies start somewhere and don’t become blue chips overnight.

Two ASX shares that are at the start of their journeys and growing fast are listed below. Here’s what has investors watching them closely:

Damstra Holdings Ltd (ASX: DTC)

Damstra is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses across numerous industries to track, manage, and protect their workers and assets.

The company also offers solutions which are proving very appropriate in the current COVID climate such as fever detection and mobility tracking. Management isn’t resting on its laurels, though. It recently strengthened its product portfolio with the acquisition of Vault Intelligence. It provides solutions which combine health, safety, compliance, and risk management. 

Demand for Damstra’s offering has been growing strongly in FY 2021. This led to the company reporting first quarter revenue of $5.2 million, up 34% on the prior corresponding period. Its cash receipts grew even quicker and were up 61% on the prior corresponding period to $7.1 million.

Analysts at Morgan Stanley were pleased with its first quarter performance and reiterated their overweight rating and $2.00 price target.

Whispir (ASX: WSP)

Another growing small cap share is Whispir. It is a software-as-a-service communications workflow platform provider which automates communications between businesses and their workers and customers.

It was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it posted a 25.5% increase in revenue to $39.1 million and annualised recurring revenue (ARR) growth of 34% to $42.2 million. Pleasingly, its positive form has continued in FY 2021, with the company’s ARR lifting to $43.7 million at the end of September.

The good news for the company and its shareholders is that Whispir still has a significant runway for growth over the next decade.

Management currently estimates that the Workflow Communications platform as a Service market will be worth US$8 billion per year by 2024. This means it currently only has a ~0.5% slice of this market.

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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 Damstra Holdings Ltd and Whispir Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Speculative

Scared looking people on a rollercoaster ride, just like the Afterpay share price in recent months.
Resources Shares

May was a rollercoaster ride for the Vulcan (ASX:VUL) share price

Shareholders in Vulcan Energy Resources Ltd (ASX: VUL) had a rollercoaster ride in May. After opening the month at around …

Read more »

Five stacked building blocks with green arrows, indicating rising inflation or share prices
Share Gainers

The ClearVue (ASX:CPV) share price is up 65% in a month. Here’s why

It’s another cracking day for the ClearVue Technologies Ltd (ASX: CPV) share price. This comes as it rallies a further …

Read more »

tech shares represented by woman holding hand out to touch icons on digital screen

2 small cap ASX tech shares to buy now

Due to the recent weakness in the tech sector, a number of tech shares are trading notably lower than their …

Read more »

Ideas and innovation

2 small cap ASX shares you need to know about

There are a good number of options at the small end of the market for investors to choose from. However, …

Read more »

watch, watch list, observe, keep an eye on

3 small cap ASX shares to watch in 2021

As I’m a big fan of small cap shares, I feel quite fortunate to have a large number to choose …

Read more »

asx share price on watch represented by investor peering over top of bench

2 small cap ASX shares to watch closely in 2021

If you’re a fan of small cap shares, then you might want to take a look at the ones listed …

Read more »

A happy woman raises her face in celebration, indicating positive share price movement on the ASX

2 buy-rated small cap ASX shares growing rapidly

The good news is that if you’re a fan of small cap shares, there are a number of companies at …

Read more »

wooden letter blocks spelling the word 'discount' representing cheap xero share price

2 small cap ASX tech shares trading at a big discount

Due to the recent market volatility, a number of small cap tech shares have been dragged notably lower. Two that …

Read more »