3 exciting small cap ASX shares to watch

Whispir Ltd (ASX:WSP) and these exciting small cap ASX shares could have bright futures ahead of them. Here’s why…
The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia. –

At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

Three standouts are listed below. Here’s why they should be on your watchlist:

Mach7 Technologies Ltd (ASX: M7T)

The first small cap ASX share to watch is Mach7. It is a medical imaging data management solutions provider that allows users to create a clear and complete view of the patient. Users then use this to help them inform diagnosis, reduce care delivery delays and costs, and improve patient outcomes.

Thanks to the quality of this software and trends such as telehealth, demand for its offering is expected to grow strongly in the future. In respect to the latter, the company notes that telehealth services are creating a need for this type of technology. According to management, the company’s total addressable market is estimated to be US$2.75 billion. This gives it a long runway for growth over the next decade.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX healthcare share to watch is Volpara. It is a healthcare technology company that provides software which leverages artificial intelligence imaging algorithms to help with the early detection of breast cancer. Its key solution is the VolparaEnterprise product, which is supported by add-on solutions such as VolparaDensity, VolparaDose, VolparaPressure, VolparaLive, and VolparaPositioning.

Management estimates that its whole suite of products equates to US$10 per user, which is many times greater than its current ARPU of US$1.40. Combined with further market share gains, this could support significant revenue growth in the future. Positively, management is making great progress with this. It notes that some contracts during the last quarter were achieved with an ARPU of up to US$5.65.

Whispir Ltd (ASX: WSP)

A final small cap share to watch is Whispir. It is a cloud-based communications platform that uses cutting edge technology to bring all communications channels like email, text messaging and web chatting together in one easily accessible space. This helps businesses large and small to eradicate communication inefficiencies and redundancies so their staff and clients can connect in new and productive ways.

Demand has been increasing strongly for its offering, leading to rapid recurring revenue growth in recent years. The good news, though, is that Whispir is still only scratching at the surface of its total addressable market (TAM). At the end of the third quarter, the company’s annualised recurring revenue stood at $50.3 million, which was up 20.3% over the prior corresponding period. This compares to its TAM of US$4.7 billion in the just United States 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 February 15th 2021

More reading

3 exciting ASX growth shares rated as buys

2 growing small cap ASX shares you need to know

2 little known ASX growth shares to buy

3 outstanding small cap ASX shares to watch

2 rapidly growing small cap ASX shares to watch

The post 3 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!