If you're interested in getting a little exposure to the small side of the Australian share market, then you might want to take a look at the shares listed below.
I believe these four ASX small cap shares have very bright futures ahead of them. Here's why:
ELMO Software Ltd (ASX: ELO)
The first small cap ASX share to watch is ELMO Software. It is a cloud-based human resources and payroll software company which provides users with a unified platform. This platform streamlines processes such as recruitment, on-boarding, learning, and payroll. It has an estimated $2.4 billion market opportunity in the ANZ market and the potential to expand globally in the future. It appears to have its eyes on a UK market worth ~$6.8 billion.
MNF Group Ltd (ASX: MNF)
Another small cap ASX share to watch is MNF Group. It is a leading provider of Voice over Internet Protocol (VoIP) technology. This technology is used to convert analogue audio signals into digital data that can be sent over the internet. This is essentially using a telephone via the internet. Demand for VoIP services has been growing very strongly this year because of the pandemic and the work from home initiative. I expect this trend to continue in FY 2021.
Nitro Software Ltd (ASX: NTO)
I think Nitro Software is a small cap ASX share to watch. Nitro is a software company that is aiming to drive digital transformation across multiple industries. Its core solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.
Volpara Health Technologies Ltd (ASX: VHT)
A final small cap ASX share to watch is Volpara. Its software uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been a very strong performer over the last few years thanks to the growing popularity of its software with radiologists across North America. I expect this positive form to continue this year, especially with the help of recent acquisitions, which look set to increase its average revenue per user metric materially in the future.
