One of the best performers in the tech sector over recent times has been the Afterpay Touch Group Ltd (ASX: APT) share price.
Despite falling significantly from its all-time high of $23.00 due to the market volatility, it has more than quadrupled in value since Afterpay and Touchcorp merged in 2017.
I believe this demonstrates just how rewarding it can be to invest in small cap tech shares.
And while only a handful of shares out of a large group will deliver returns of this nature, I believe if you choose wisely you have a chance of finding some market beaters.
With that in mind, here are three small cap tech shares which I think are worth watching closely:
ELMO Software Ltd (ASX: ELO)
ELMO Software is a leading provider of cloud-based human resources and payroll software solutions. The company has been experiencing growing demand for its software in recent years and this remains the case today. In the first quarter of FY 2019 the company reported quarterly cash receipts growth of 91% on the prior corresponding period to $10.3 million. Due to the quality of its offering and large market opportunity, I feel confident that there will be more of the same over the course of FY 2019 and beyond.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a digital workplace platform provider that I think could be worth keeping an eye on. Due to its close working relationship with tech giant Microsoft and the appointment of a dedicated sales force, in the first quarter of FY 2019 LiveTiles reported a 272% increase in annualised recurring revenue on the prior corresponding period.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara Health Technologies is leading provider of breast imaging analytics and analysis products that improve clinical decision-making and the early detection of breast cancer. Due to the quality of the product, Volpara has grown its share of the U.S. breast screening market at a rapid rate over the last 18 months. The good news is that management is confident that its market share gains will accelerate this year. It is targeting a 9% share of the U.S. breast screening market by the end of FY 2019, up from 3.2% at the end of FY 2018.
