There are a lot of options for investors to choose from on the Australian share market.
Two that could be worth getting better acquainted with are listed below. Here's what you need to know about these growing companies:
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Nearmap Ltd (ASX: NEA)
The first ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in Australia and North America.
Nearmap's products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means users can undertake virtual site visits anywhere there is coverage without leaving the home or office. The company notes that this enables informed decisions, streamlined operations, and meaningful cost savings.
Another positive is that Nearmap has recently bolstered its offering with the launch of several new products and add-ons. This includes an artificial intelligence product which has significant potential.
And while there are some legal issues hanging over the company, management believes the allegations are without merit and will vigorously defend against the complaint. Some recent and significant insider buying appears to demonstrate their confidence in this.
Morgan Stanley is a fan of the company. It currently has an overweight rating and $3.20 price target on the company's shares. This compares to the latest Nearmap share price of $1.87.
Nitro Software Ltd (ASX: NTO)
Another ASX share to look at is Nitro. It is a global document productivity company helping businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation. This is achieved by providing PDF productivity and eSigning for all in a single, affordable solution.
At present, Nitro is helping more than 11,000 businesses globally drive digital transformation. This includes 68% of the Fortune 500 and three of the Fortune 10.
From these customers, the company reported a 64% increase in annual recurring revenue (ARR) to $27.7 million in FY 2020. This was driven by new customer growth and 117% net revenue retention. This means it not only retained customers, it generated 17% more revenue from them.
Positively, similarly strong growth is expected in FY 2021. Management has provided ARR guidance of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%. This is still well short of a PDF document productivity and eSigning total addressable market (TAM) estimated to be worth $28 billion.
Morgan Stanley is bullish on the company. Its analysts currently have an overweight rating and $3.70 price target on the company's shares. This compares to the latest Nitro share price of $3.31.
