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3 exciting small cap ASX shares to put on your watchlist

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At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s what you need to know about them:

IntelliHR Ltd (ASX: IHR)

The first small cap ASX share to look at is IntelliHR. It is a cloud-based human resources and people management platform provider. Last month the company released its second quarter update and revealed that its international expansion strategy was going very positively. This expansion underpinned a 23% increase in second quarter Annualised Recurring Revenue (ARR) and and a 147% increase contracted subscriber headcount. Approximately 77% of its new subscribers came from the massive North American market.

PlaySide Studios Limited (ASX: PLY)

Another small cap ASX share to look at is PlaySide Studios, It is one of Australia’s largest independent video game developers, with a growing portfolio of games. This includes games based on its own original intellectual property and games developed with Hollywood studios such as Disney. Late last month, PlaySide released its second quarter update and revealed quarterly revenue of $3.13 million. This was an increase of a 66% over the first quarter. Given that management estimates that the global mobile games market is worth $77.2 billion per annum, it clearly has a long runway for growth in the future.

Whispir Ltd (ASX: WSP)

Whispir is a software-as-a-service communications workflow platform provider. Its software platform allows businesses and governments to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Earlier this week, Whispir released its half year results and reported a 29.2% increase in its ARR to $47.4 million. This was driven by increased activity from its existing customers and the addition of 77 net new customer to a total of 707 customers. This is still only scratching at the surface of its global market opportunity.

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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 Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. 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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