3 rapidly growing small cap ASX shares to watch

These small cap ASX shares could have bright futures…

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The small end of the Australian share market is home to 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 why they are highly rated:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a leading provider of enterprise mobility software to businesses globally. Its popular software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results by creating more positive and efficient buying experiences.

The company notes that its platform empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively. Pleasingly, demand for its software has been growing quickly, which is underpinning strong annualised recurring revenues (ARR) growth. 

Booktopia Group Ltd (ASX: BKG)

Booktopia is an online book retailer which has been growing at a rapid rate. 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.

Pleasingly, Booktopia then followed this up with a 53% increase in 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 benefit fully from increased demand by shipping record volumes of books.

Universal Store Holdings Limited (ASX: UNI)

Universal Store is a fashion retailer delivering an ever-changing and carefully curated selection of on-trend products. The retailer has been on form this year, delivering a 23.3% increase in half year sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million.

Positively, this strong form continued in the third quarter. Universal Store recently reported a 39.6% increase in quarterly sales, putting it in a position to deliver a very strong full year result in August.

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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 BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Booktopia Group Limited. The Motley Fool Australia has recommended BIGTINCAN FPO. 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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