If you're looking to add one or two small cap ASX shares to your portfolio in June, then I think the two listed below are worth considering.
Here's why I think these small caps could be destined for big things in the future:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a $276 million tech company which provides enterprise mobility software to businesses. This software help improve mobile worker productivity and has a track record of increasing sales win rates and reducing costs. Unsurprisingly, this has gone down well with businesses and a growing number of blue chips are using its software. This includes one of the big four banks, Australia and New Zealand Banking GrpLtd (ASX: ANZ).
Pleasingly, its strong growth has continued unabated during the pandemic. Management recently reaffirmed that it is on track to achieve its 30% to 40% organic revenue growth target in FY 2020, with stable retention. I think this makes it one of the best small cap ASX shares on the local market.
ELMO Software Ltd (ASX: ELO)
Another small cap ASX share which I think could grow strongly over the next decade is ELMO Software. It is a $560 million software company which provides businesses with a cloud-based human resources and payroll software solution. This unified solution is proving very popular with businesses that are wanting to streamline everyday processes such as payroll, recruitment, and learning.
ELMO recently completed a $70 million placement, with the proceeds being used to accelerate organic growth initiatives and to fund acquisition opportunities. I believe these funds could be used to expand internationally in the future as well. Not that it necessarily needs to. Management estimates that the ANZ market is worth $2.4 billion. This compares to its FY 2020 revenue guidance of $50 million to $52 million, which will be up 17.4% to 22% year on year. I think this makes ELMO a small cap to watch.
