Although Australia's tech sector is tiny in comparison to those in the U.S. and Europe, that doesn't mean there aren't any outstanding companies on the rise inside it.
Four exciting small cap tech shares listed on the Australian share market that I think investors should be better acquainted with are listed below.
Here's why I like them:
Data Exchange Network Limited (ASX: DXN)
Data Exchange Network is a new listing on the ASX and a company aiming to capitalise on the growing demand for data centre services brought about by the incredible rise of cloud computing. As well as opening two data centres of its own in Melbourne and Sydney, the company builds modular data centres on demand on behalf of its customers.
ELMO Software Ltd (ASX: ELO)
I think that this cloud-based talent management software solutions provider could have a bright future ahead of it based on its progress so far. ELMO smashed expectations in FY 2017 and is on course to do so again in FY 2018 thanks to the strong demand it is experiencing for its services. This strong performance recently enabled the company to raise $45 million from institutional investors to accelerate its growth.
Gentrack Group Ltd (ASX: GTK)
Gentrack is a billing software provider that provides its services to airports, water, and electricity companies. It has an impressive and fast-growing customer list which includes one of the world's largest energy utility service providers, E.ON. Thanks to the quality and stickiness of its product, I expect Gentrack's recurring revenues to grow at a solid rate over the next few years.
Hub24 Ltd (ASX: HUB)
This investment and superannuation platform provider continues to go from strength to strength and recently reported a 42% increase in net inflows on its platform to $595 million. This lifted its total funds under administration to $7.4 billion at the end of the third quarter. While its shares are changing hands at a lofty 55x estimated FY 2019 earnings, I do think its current growth profile goes some way to justifying this premium.
