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:
Avita Medical Ltd (ASX: AVH)
Avita Medical is a global regenerative medicine company best known for its Recell system. This is a spray-on skin treatment used for burns victims. Demand for its offering has been growing very strongly over the last couple of years. Pleasingly, this has continued in FY 2021 after a minor blip in FY 2020 because of the pandemic.
During the first quarter, Avita reported a 59% increase in U.S based RECELL revenue to US$5 million. This strong revenue growth was driven by a 27.2% increase in procedural volumes to 496 and the addition of 9 new accounts in the first quarter. The latter brings its total accounts to 86.
Avita isn’t settling for this and is busy seeking to expand the use of the Recell system. It is hoping to be able to treat vitiligo with the system in the future. In addition, the company recently announced a collaboration with Houston Methodist Research Institute that will see the pairing of Avita’s proprietary Spray-On Skin Cells with Houston Methodist Research Institute’s expertise in reversing cellular ageing. The project is seeking to establish proof-of-concept for the development of a novel approach to reverse ageing and rejuvenate skin.
Bell Potter currently has a speculative buy rating and $15.00 price target on the company’s shares.
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.
Analysts at Canaccord Genuity are fans of the company. The broker has put a buy rating and $1.40 price target on its shares.
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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 BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited and BIGTINCAN FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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