It is worth remembering that all companies start somewhere and don't become blue chips overnight.
Two ASX shares that are at the start of their journeys and growing fast are listed below. Here's what has investors watching them closely:
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Damstra Holdings Ltd (ASX: DTC)
Damstra is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses across numerous industries to track, manage, and protect their workers and assets.
The company also offers solutions which are proving very appropriate in the current COVID climate such as fever detection and mobility tracking. Management isn't resting on its laurels, though. It recently strengthened its product portfolio with the acquisition of Vault Intelligence. It provides solutions which combine health, safety, compliance, and risk management.
Demand for Damstra's offering has been growing strongly in FY 2021. This led to the company reporting first quarter revenue of $5.2 million, up 34% on the prior corresponding period. Its cash receipts grew even quicker and were up 61% on the prior corresponding period to $7.1 million.
Analysts at Morgan Stanley were pleased with its first quarter performance and reiterated their overweight rating and $2.00 price target.
Whispir (ASX: WSP)
Another growing small cap share is Whispir. It is a software-as-a-service communications workflow platform provider which automates communications between businesses and their workers and customers.
It was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it posted a 25.5% increase in revenue to $39.1 million and annualised recurring revenue (ARR) growth of 34% to $42.2 million. Pleasingly, its positive form has continued in FY 2021, with the company's ARR lifting to $43.7 million at the end of September.
The good news for the company and its shareholders is that Whispir still has a significant runway for growth over the next decade.
Management currently estimates that the Workflow Communications platform as a Service market will be worth US$8 billion per year by 2024. This means it currently only has a ~0.5% slice of this market.
