Earlier today I looked at a couple of mid cap ASX shares that are highly rated. On this occasion, I'm going to look a little higher up on the risk scale at small cap shares.
Three small cap ASX shares that could have bright futures are listed below. Here's what you need to know about them:
Audinate Group Limited (ASX: AD8)
The first small cap to watch is Audinate. It is the digital audio-visual networking technologies provider behind the industry-leading Dante audio over IP networking solution. Audinate's solutions replace point-to-point audio and video connections with easy-to-use, scalable, flexible networking. Hundreds of manufacturers have adopted the technology in thousands of professional products, making it Dante the de facto standard for modern AV connectivity. While demand was soft during the pandemic, sales have been increasing strongly. In fact, last week Audinate reported its highest ever quarterly revenue.
Pointerra Ltd (ASX: 3DP)
Another small cap to watch is Pointerra. It is a growing technology company with a focus on the commercialisation of 3D geospatial data. The company's software allows users to manage, visualise, and share large digital 3D datasets with ease. Last week Pointerra released its third quarter update and revealed further strong growth in cash receipts. For the three months ended 31 March, the company achieved record quarterly cash receipts from customers of $1.37 million. This was more than double the amount recorded during the second quarter of FY 2021. It is also still only the tiniest fraction of an addressable market it estimates to be worth $500 billion annually.
MNF Group (ASX: MNF)
Another small cap ASX share to watch is MNF Group. It is a leading provider of Voice over Internet Protocol technology to businesses and consumers. It has also been performing strongly in FY 2021. For example, in February the company released its half year results and reported a 15% increase in recurring revenue to $55.7 million. This was driven by strong growth in new numbers and a Net Revenue Retention of 115%. Positively, management is optimistic on the future thanks to structural tailwinds and its expansion into the Asia market.
