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:
Audinate Group Limited (ASX: AD8)
Audinate is the digital audio-visual networking technologies provider behind the popular Dante audio over IP networking solution. This solution is used across a number of industries and is the clear industry leader. This puts the company in a great position to benefit from increasing demand once the pandemic passes. In fact, pent-up demand is already showing, with Audinate reporting its highest ever quarterly revenue during the third quarter.
Booktopia Group Ltd (ASX: BKG)
The second small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate since its IPO late last year. For example, during the first half, the company reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. It then followed this up with a 53% increase in quarterly revenue during the third quarter. Management advised that this strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to ship more books than ever.
A final small cap to watch is Pointerra. It is a technology company that provides a powerful cloud-based solution for managing, visualising, working in, analysing, using, and sharing massive 3D point clouds and datasets. Pointerra’s platform can extract vital information from the data that would otherwise take many hours to do. Management estimates that its market opportunity is currently worth an enormous $500 billion annually. While it might be best to take that estimate with a pinch of salt, it does demonstrate its material growth potential over the next decade and beyond.