At the small end of the market there are a number of companies that are growing at a very strong rate.
Two small cap ASX 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 leading provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction.
It has been experiencing very strong demand for its platform over the last couple of years and this has continued in FY 2021. In fact, just yesterday Bigtincan released its second quarter update and revealed annualised recurring revenue (ARR) of $48.4 million. This represents growth of 50% over the prior corresponding period. This comprised organic ARR of $40 million (up 42.9%) and ARR of $8.4 million from recently completed acquisitions.
In addition to this, management reiterated its organic ARR guidance of $49 million to $53 million for FY 2021. This will be an increase of up to 48% year on year, but is still only a fraction of its market opportunity. The company estimates that the sales engagement platform market will be worth $6 billion a year by 2021.
Nitro Software Ltd (ASX: NTO)
Another quick-growing small cap ASX share is Nitro Software. It is the software company behind the increasingly popular Nitro Productivity Suite. This software solution provides integrated PDF productivity, eSignature, and business intelligence (BI) tools to customers.
The highly scalable software solution is being used by individual users, small businesses, government agencies, and large multinational enterprises. In fact, Nitro is now serving 11,700 business customers, including 68% of the Fortune 500.
As with Bigtincan, Nitro has just released its latest quarterly update. That fourth quarter update revealed that its ARR reached US$27.7 million at the end of December. This was an impressive 64% increase on the prior corresponding period and came in ahead of its upgraded guidance.
