Damstra Holdings Ltd (ASX:DTC) and this ASX small cap share could be ones to watch right now…
The post 2 exciting small cap ASX shares growing fast appeared first on The Motley Fool Australia. –
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:
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.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- 2 exciting ASX mid cap tech shares to buy in 2021
- 3 ASX shares to buy for 2021 and beyond
- 3 small cap ASX shares that could have a big 2021
- 5 exciting small cap ASX shares to watch in 2021
- 2 exciting small cap ASX tech shares to buy
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Damstra Holdings Ltd and Whispir Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.