2 exciting small cap ASX shares to watch

Doctor Care Anywhere Ltd (ASX:DOC) and this ASX small cap share could be worth watching closely in 2021…

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I'm a big fan of small cap shares so feel quite fortunate to have such a large number of them on the Australian share market.

Two small cap ASX shares that could have bright futures are listed below. Here's what you need to know about them:

Doctor Care Anywhere Ltd (ASX: DOC)

The first small cap ASX share to watch is Doctor Care Anywhere. It is a growing UK-based telehealth company aiming to deliver high-quality, effective, and efficient care to its patients, whilst reducing the overall cost of providing clinical services.

Its shares landed on the Australian share market late last year after completing an IPO which raised $102 million. Management advised that the majority of the funds raised will be used to execute the company's growth strategy. This strategy is focused on its investment in marketing and engagement capabilities, new services to drive growth in existing markets, and building international business development capabilities to pursue growth in new markets.

Given the growing popularity of telehealth, it will come as no surprise to learn that the company is growing quickly. Last month it released a fourth quarter update and revealed a 151% increase in revenue to 3.8 million pounds. This led to the company's unaudited full year revenue increasing 102% year on year to 11.6 million pounds.

Pointerra Ltd (ASX: 3DP)

Another small cap ASX share to watch is Pointerra. It is a growing technology company with a focus on the commercialisation of 3D geospatial data. The company's software solution allows users to manage, visualise, and share extremely large digital 3D datasets. It can also extract vital information from the data quickly that would otherwise take many hours to do.

Pointerra has been growing very strongly over the last 12 months. Positively, this strong growth continued during the second quarter and into the third. As of 29 January, the company's Annual Contract Value (ACV) stood at US$6.88 million. This is an increase of US$1.06 million or 18% since its last update on 25 November. It is also up 262% since this time last year.

Management advised that this was driven partly by new customers in the US energy utilities and the US and Australian mapping sectors.

The good news is that its current ACV is still only a tiny portion of its overall market opportunity. Management estimates that its global market opportunity is currently worth a massive $500 billion annually.

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 Pointerra Limited. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC and Pointerra Limited. 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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