It may not be the biggest tech sector in the world, but I believe the ANZ region's tech sector is home to a good number of companies with significant potential.
Three small cap tech shares that I'm watching closely are listed below. Here's why I think they should be on your watchlist:
ELMO Software Ltd (ASX: ELO)
I think that this cloud-based talent management software solutions provider is one of the best small cap tech shares on the Australian share market. Since listing I have been pleased by the company's outperformance of its prospectus forecasts and can't say I'm surprised that it was able to raise an additional $45 million through an institutional placement recently. I expect these funds will be used to support its explosive growth. ELMO is definitely one to watch in my opinion.
Gentrack Group Ltd (ASX: GTK)
I have been very impressed at the way this New Zealand-based billing and customer management software provider has continued to grow its recurring revenues. Thanks to the popularity and stickiness of its software, recurring revenues grew 43% to NZ$42.8 million in FY 2017. This means they now account for almost two-thirds of its revenue. With demand for its software growing in the airports, water, and power supply industries, I expect more of the same in FY 2018.
Nearmap Ltd (ASX: NEA)
Nearmap is a geospatial map technology provider that has been on fire over the last 12 months. Its share price has risen a considerable 72% during this time thanks largely to its recent quarterly update. That update revealed an increase in its US annualised contract value ahead of even the most bullish expectations. While it is early days, if the company can continue to grow strongly in the U.S. market then it could have a very bright future ahead of it.
