3 stellar small cap ASX shares to watch

Booktopia Group Ltd (ASX:BKG) and these small cap ASX shares could be worth watching very closely. Here's what you need to know…

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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:

man intently watching tv representing media asx share price on watch

Image source: Getty Images

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap share to look at is Bigtincan. It is a 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 it empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively. Demand for its software has been growing quickly, underpinning strong annualised recurring revenues (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. 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. It then followed this up with a 53% increase in quarterly revenue during the third quarter. This strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to take advantage of the increased demand by shipping more books than ever.

Damstra Holdings Ltd (ASX: DTC)

A final small cap to watch is Damstra. It is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Damstra has been a solid performer over the last couple of years and has continued this strong form in FY 2021. During the first half of FY 2021, the company delivered a 29.6% increase in revenue to $13.3 million. The good news is that management estimates that its total addressable market will be worth US$20 billion by 2022. This this gives it a very long runway for growth. 

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

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