3 very exciting small cap ASX shares to watch

MyDeal.com.au Limited (ASX:MYD) and these ASX small cap shares could be ones to watch very closely. Here's what you have to know…

| More on:
ASX share price on watch represented by surprised man with binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you a fan of small cap shares? If you are, the good news is that there are a number of promising companies at the small side of the Australian share market.

Three that you might want to look closely at are listed below. Here's what you need to know about them:

Damstra Holdings Ltd (ASX: DTC)

The first ASX small cap share to watch is Damstra. It is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Demand has been growing strongly in recent years and has continued in FY 2021. For example, it recently released its second quarter update. Over the three months, Damstra delivered a record quarter for revenue and cash receipts. Key drivers of its growth were a 49% jump in user numbers to 623,000, the doubling of its client numbers to 670, and its low churn level of <0.5%. Management believes this validates its recent acquisitions. 

MyDeal.com.au Limited (ASX: MYD)

MyDeal.com.au is an online retail marketplace. Thanks to the shift to online shopping, which has accelerated because of the pandemic, the company has been growing very strongly over the last 12 months. This certainly has been the case in FY 2021. MyDeal recently revealed that it first half gross sales increased 217% over the same period last year to $126.7 million. This was driven by a strong increase in active customers to a record 813,764 and repeat use. Looking ahead, the company appears well-placed for growth thanks to growing online spending and the $40 million it raised from its IPO. These funds will be used to drive future growth. This includes growing its private label business and investing in advertising to grow its customer base and brand.

Nitro Software Ltd (ASX: NTO)

A third and final small cap ASX share to watch is Nitro Software. It is a growing software company driving digital transformation in businesses around the world across multiple industries. The company's key solution is the Nitro Productivity Suite. This solution provides businesses with integrated PDF productivity and electronic signature tools 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.

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

More on Speculative

A group of three scientists talking excitedly while working in a lab on a diabetes test developed by Proteomics International Laboratories which is an ASX share tipped to explode by Alto Capital
Ask a Fund Manager

2 'outstanding' small-cap ASX shares that could explode: expert

Ask A Fund Manager: Alto Capital's Tony Locantro reveals a pair of small caps that he reckons have a bright…

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Technology Shares

Why is the Weebit Nano share price rocketing 23% higher?

Weebit Nano shares are on fire on Wednesday...

Read more »

Man presses green buy button and red sell button on a graph.
Broker Notes

Broker names 3 speculative ASX shares to buy

Here are three speculative shares rated as buys...

Read more »

Scared looking people on a rollercoaster ride representing the volatile Mineral Resources share price in 2022
Resources Shares

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

Shareholders in the ambitious lithium producer had to fasten their seat belts last month.

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

The ClearVue Technologies Ltd (ASX: CPV) share price is up 65% in the last month. We take a look at…

Read more »

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

2 small cap ASX tech shares to buy now

Whispir Ltd (ASX:WSP) and this small cap ASX tech share could be quality options for investors after recent pullbacks...

Read more »

Speculative

2 small cap ASX shares you need to know about

Nitro Software Ltd (ASX:NTO) and this small cap ASX share could be the ones you need to know about right now.…

Read more »

Speculative

3 small cap ASX shares to watch in 2021

Booktopia Group Ltd (ASX:BKG) and these ASX small cap shares could be the ones to watch in 2021. Here's why...

Read more »