Are you looking for some small cap ASX shares to add to your watchlist? Then you might want to take a look at the ones listed below.
Here’s why they are worth keeping a close eye on:
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider best known for its industry-leading Dante audio over IP networking solution. This solution is used widely across a number of industries and is dominating the competition. For example, at the last count, the number of Dante enabled products manufactured by its customers was eight times greater than its nearest rival. Although the pandemic hit demand hard, it is rebounding strongly now. During the six months ended 31 December, Audinate reported revenue of US$11.1 million. This was flat on the prior corresponding (and COVID-free) period and up 19.5% on the second half of FY 2020.
Nitro Software Ltd (ASX: NTO)
Nitro Software is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution. Demand has been strong for the Nitro Productivity Suite, leading to the company guiding to annualised recurring revenue (ARR) of $39 million to $42 million in FY 2021. This represents year on year growth of 41% to 51.6%.
Over The Wire Holdings Ltd (ASX: OTW)
Over The Wire is a telecommunications, cloud, and IT solutions provider which has been growing at a solid rate in recent years. Positively, this has continued in FY 2021, with the company releasing a very strong half year update in February. For the six months ended 31 December, Over The Wire reported a 17% increase in revenue to $50.3 million and a 28% jump in EBITDA to $10.5 million. Positively, almost all of its revenue is now recurring, with recurring revenue growing 25% to $45.9 million.