As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.
Three small cap shares that could be worth adding to your watchlist are listed below. Here's what you need to know about them:
CleanSpace Holdings Limited (ASX: CSX)
CleanSpace is a designer, manufacturer, and seller of workplace respiratory protection equipment (RPE) for healthcare and industrial end markets. It recently listed on the Australian share market, raising $20 million to support its growth plans. These plans include building on the adoption of CleanSpace products in the healthcare and industrial markets, product development, expanding awareness, and entering new international markets.
IntelliHR Ltd (ASX: IHR)
Another small cap to watch is IntelliHR. It is a next-generation cloud-based people management and data analytics platform provider. Demand for its platform has been growing strongly this year, leading to the company reporting a 148% increase in subscriber numbers to over 30,000 during the first five months of FY 2021. This underpinned an 81.3% increase in its contracted annual recurring revenue (ARR) to $2.8 million. Pleasingly, management appears confident there will be more of the same in future thanks to the quality of its software, international expansion, and favourable industry trends.
Nitro Software Ltd (ASX: NTO)
A final small cap to watch is Nitro Software. It is a growing software company driving digital transformation in businesses around the world across multiple industries. Nitro's key solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers via a software-as-a-service and desktop-based software solution. Demand for its offering has been stronger than expected in FY 2020, leading to management recently upgrading its guidance. Nitro expects its subscription ARR to come in at $26 million to $27 million in FY 2020. This compares to the $24.4 million ARR it guided to in its IPO prospectus.
