Whispir (ASX:WSP) and this ASX small cap share could be worth watching closely in 2021…
The post 2 exciting small cap ASX shares to watch in 2021 appeared first on Motley Fool Australia. –
There are a lot of options at the small end of the market for investors to choose from.
Two that could be worth getting better acquainted with are listed below. Here’s what you need to know about them:
Serko Ltd (ASX: SKO)
Serko is an online travel booking and expense management provider behind the Zeno Travel and Zeno Expense platforms. Zeno Travel provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Zeno Expense allows its users to automate and streamline the expense administration function, identify out-of-policy expense claims, and prevent fraud.
Times have been hard for Serko in 2020 because of the pandemic. However, things are starting to improve. On Thursday the company provided a trading update which revealed that in November its transaction volumes increased to 44% of pre-pandemic levels.
With domestic borders reopening, a potential COVID vaccine (or three) soon to be rolled out, and its new Booking.com deal coming into effect, management appears optimistic that transaction volumes will continue to improve over the coming months.
Whispir (ASX: WSP)
Whispir is a leading workflow communications platform provider which allows organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.
It was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it reported a 25.5% increase in revenue to $39.1 million and annualised recurring revenue (ARR) growth of 34% to $42.2 million. This was well ahead of its guidance. Since then it has continued its growth and reported a 26.7% increase in ARR to $43.7 million for the first quarter of FY 2021.
The good news is that this is still only scratching at the surface of its large global market opportunity. Management estimates that the workflow communications platform as a service market could be worth US$8 billion per year by 2024.
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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 Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia has recommended Serko Ltd and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.