I think the Australian and New Zealand tech sectors are home to a number of exciting companies with strong long-term growth potential.
Five small cap tech shares that I think are worth adding to your watchlist this week are listed below. Here's why I like them:
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio company that develops hardware and software solutions for the professional audio-visual industry. The company is best known for its flagship Dante product which allows users to set up complex audio networks with relative ease. Demand for its products has been strong, helping the company grow revenue by 30% to $19.7 million in FY 2018.
Citadel Group Ltd (ASX: CGL)
Thanks to the growing amount of data being generated by businesses and the importance of keeping it secure, I think this specialist in IT security and data management is well-positioned to benefit. This is due to the growing popularity of its Citadel-IX cloud-based enterprise information management platform which allows users to securely access and transfer proprietary and sensitive information remotely.
ELMO Software Ltd (ASX: ELO)
ELMO offers a comprehensive suite of cloud-based human resources and payroll software solutions that can be easily configured to an organisation's requirements. Strong demand in FY 2018 led to ELMO achieving pro forma revenue of $31.9 million and pro forma SaaS revenue of $29.8 million. The good news is that this is still just a fraction of the addressable market in Australia and New Zealand which management estimates to be worth US$770 million per year.
LiveTiles Ltd (ASX: LVT)
LiveTiles provides a digital workplace platform which allows businesses ways to increase collaboration and efficiency amongst their employees. Last year it grew annualised recurring revenues by 275% to $15 million thanks partly to its partnership with Microsoft. FY 2019 has started strongly due in part to the successful appointment of N3 as its sales and marketing force.
Serko Ltd (ASX: SKO)
This New Zealand-based travel and expense technology solutions provider could be worth a look. Its services are used by a growing number of companies in the travel industry including Flight Centre Travel Group (ASX: FLT). Serko's management has provided revenue growth guidance of up to 30% in FY 2019.
