I think at the small end of the market there are a good number of tech shares that have the potential to grow significantly in the future.
Three that have caught my eye in recent months are listed below. Here's why I think they are worth adding to your watchlist:
Atomos Ltd (ASX: AMS)
Atomos is a global video technology company that listed on the Australian share market at the very end of 2018. It provides technology that enhances video content creation by producing monitor-recorder products that connect the imaging and computer worlds together. I believe Atomos is well-positioned to benefit from the expected growth in original content spending and the rise in professional-amateur content creators. This year sales are expected to increase 18.5% year on year to $42.25 million.
ELMO Software Ltd (ASX: ELO)
ELMO is a leading provider of cloud-based human resources and payroll software solutions in the Australia and New Zealand region. In FY 2018 the company was a standout performer delivering revenue of $31.9 million and EBITDA of $5.7 million. Both these figures were up significantly on FY 2017's result. Due to the strong demand for its offering and its sizeable addressable market, which is estimated to be worth $1.7 billion per annum, I believe this solid growth could continue for some time to come.
LiveTiles Ltd (ASX: LVT)
LiveTiles is a digital workplace platform provider which has been growing at an explosive rate over the last 18 months. Earlier this week the company advised that it had more than tripled its annualised recurring revenue (ARR) over the last 12 months. According to the release, the engagement of a specialist sales force helped take its ARR to $22.9 million at the end of December, up a whopping 232% on the same time last year. I think LiveTiles is one to watch closely in 2019.
