3 exciting small cap ASX shares to watch

Pointerra Ltd (ASX:3DP) and these small cap ASX shares could be worth watching very closely in 2021. Here's what you need to know…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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 that investors might want to get better acquainted with are listed below. Here's what you need to know about them:

ASX share price on watch represented by surprised man with binoculars

Image source: Getty Images

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to watch is Bigtincan. It is a provider of enterprise mobility software to sales and service organisations. This platform allows users to increase sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.

The company has been a strong performer so far in FY 2021. As a result, management advised that is on course achieve the top end of its annualised recurring revenue (ARR) guidance range of $49 million to $53 million this year. This will be a 48% increase on FY 2020's ARR of $35.8 million.

PlaySide Studios Limited (ASX: PLY)

Another small cap ASX share to look at is PlaySide Studios. It is one of the largest independent video game developers in Australia. The company has a growing portfolio of developed games, including ones based on its own original intellectual property and those of Hollywood studios such as Disney.

During the first half of FY 2021, PlaySide reported record first half sales revenue of $5 million. This was up 63% on the prior corresponding period. This is still only a very small slice of its global market opportunity.

Pointerra Ltd (ASX: 3DP)

Another small cap to look at is Pointerra. It is a leading provider of a cloud-based solution for managing 3D point clouds and datasets. Its technology solves problems in the digital asset management workflows and allows 3D datasets to be used without the need for performance computing.

Management estimates that it has a global market opportunity worth an enormous $500 billion annually. This gives Pointerra a very long runway for growth over the 2020s and beyond.

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 BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia has recommended BIGTINCAN FPO and Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Small Cap Shares

Two kids in superhero capes.
Small Cap Shares

2 small-cap ASX shares ready for 'new all-time highs': expert

Stocks for smaller businesses really struggled last year. Here's a pair to buy if you think that will turn around…

Read more »

A little boy surrounded by green grass and trees looks up at the sky, waiting for rain or sunshine.
Small Cap Shares

Top ASX small-cap shares to buy in March 2023

Mighty oaks from little acorns can grow!

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Small Cap Shares

3 small-cap ASX shares flying high after reporting season: Elvest

Here's a trio of stocks going places, so you better hop on for the ride!

Read more »

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today
Small Cap Shares

2 exciting small cap ASX shares to buy: analysts

At the small end of town, analysts are expecting big things from these shares...

Read more »

Kid on a skateboard with cardboard wings soars along the road.
Broker Notes

The obscure ASX share with 45% upside one small-caps expert is backing right now

Here's a stock you've never heard of, but is headed to the top.

Read more »

A recreational fisherman holds a fishing rod with his hands apart indicating it was this big with a smile on his face.
Small Cap Shares

Top ASX small-cap shares to buy in 2023

Sometimes you have to go deep to catch the next big fish.

Read more »

A man sees some good news on his phone and gives a little cheer.
Small Cap Shares

Goldman Sachs says these ASX small cap shares are buy with major upside potential

These could be top options for investors with a higher tolerance for risk...

Read more »

three children wearing superhero costumes, complete with masks, pose with hands on hips wearing capes and sneakers on a running track.
Small Cap Shares

3 small-cap ASX shares Celeste is riding off into the sunset on

Are smaller companies set to go gangbusters in 2023? Here's a trio of stocks to test that hypothesis.

Read more »