The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.
Three that investors might want to get better acquainted with are listed below. Here's why they should be on your watchlist:
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Bigtincan Holdings Ltd (ASX: BTH)
The first small cap share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan's popular software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results by creating more positive and efficient buying experiences.
The company notes that its platform empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively. Demand for its software continues to grow and is underpinning strong annualised recurring revenue (ARR) growth.
Booktopia Group Ltd (ASX: BKG)
The second small cap ASX share to watch is Booktopia. It is an online book retailer which has been growing at an explosive rate in FY 2021. For example, during the first half the company reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million.
Positively, it has since followed this up with a 53% increase in quarterly revenue during the third quarter. This positions it to deliver a stellar full year result this month.
Booktopia notes that its strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to ship more books than ever.
Whispir Ltd (ASX: WSP)
A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir provides an industry-leading software platform that allows governments and businesses to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
Demand for its software has also been increasing strongly, leading to stellar recurring revenue growth in recent years. The good news is that it is still only scratching at the surface of its total addressable market (TAM).
For example, at the end of the third quarter, Whispir's ARR stood at $50.3 million, which was up 20.3% over the prior corresponding period. This compares to its TAM of US4.7 billion in the just United States.
