4 small cap ASX shares to watch in 2022

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Are you looking for some small cap shares to add to your watchlist? Then have a look at the ones listed below.

Here's why they could be worth getting better acquainted with:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to watch is Bigtincan. It is a growing sales enablement platform provider that allows users to drive the sales process with high quality sales content anywhere, anytime, and on any device. Demand has been growing strongly for its offering, underpinning strong recurring revenue growth in recent years. Looking ahead, thanks to a combination of organic growth and the recent acquisition of Brainshark, management is guiding to a 124% year on year increase in annualised recurring revenue in FY 2022.

Catapult Group International Ltd (ASX: CAT)

Catapult is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. The company's products are used by many of the biggest and most successful sports teams and organisations across the world. And while demand softened at the height of the pandemic, it has rebounded strongly since then. This led to Catapult reporting a 13% increase in revenue to $37.5 million during the first half of FY 2022. This was driven by 29% growth in subscription revenue, which reflects Catapult's strategic shift to a focus on high quality recurring revenue SaaS deals.

ELMO Software Ltd (ASX: ELO)

Another small cap to look at is ELMO. It is a cloud-based human resources and payroll software company. ELMO provides a unified platform to streamline processes for employee administration, recruitment, on-boarding, learning, performance, remuneration, compliance training and payroll. This has proven very popular with SMEs and has led to ELMO growing at a consistently strong rate in recent years.

MNF Group Ltd (ASX: MNF)

A final small cap to watch is MNF. It specialises in the Voice over Internet Protocol (VoIP) technology which is used to support services like teleconferencing, online business meetings, and digital data transfers. It appears well-placed for growth due to increasing demand for VoIP technology, its expansion into Asia, and its strong balance sheet. The latter gives management opportunities to bolster its growth with M&A.

Motley Fool contributor 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 has recommended BIGTINCAN FPO, Catapult Group International Ltd, Elmo Software, and MNF Group Limited. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd, Elmo Software, and MNF 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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