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Today we will be talking about three ASX small-cap stocks with over 7% six-month returns.
These stocks include Bigtincan, ELMO Software and MNF Group.
Small-cap stocks are popular among investors as they have a potential to outperform mid
and large-cap stocks.
Unlike large-caps, small-cap stocks always have a high potential to grow further, implying
investors can expect better returns in future by investing in them.
In the current scenario, where vaccination rate has picked up significantly, these stocks
are expected to grow further.
However, small-cap stocks also come with higher risks.
Thus, investors should be a bit cautious while dealing in these stocks.
Without further ado, here are three small-cap ASX-listed tech shares with more than 7% six-month
returns:
First up.
Bigtincan Holdings provides software solutions as a service to global organizations across
life sciences, telecommunications, financial, technology, retail, manufacturing, energy,
and government sector.
The AU$556.85 million company’s recurring revenues from enterprise mobility software
have grown significantly in the recent past.
Bigtincan posted a 48% increase in annualised recurring revenue to AU$53.1 million in financial
year 2021.
The company expects to continue the same performance in financial year 2022.
It has provided an annualised recurring revenue guidance of AU$119 million for financial year
2022.
The company acquired Brainshark and had an associated $135.3 million capital raising
in August 2021.
Throughout the quarter, the company worked on integrating Brainshark through the unification
of teams, product offerings, and market-facing activities.
In addition, the company won new customers alongside the expansion of uses by existing
customers.
Bigtincan has given a return of around 7% in the past six months and is currently trading
at AU$0.99.
Next.
ELMO Software offers cloud-based human resource and payroll solutions for organisations.
In financial year 2021, the annualised recurring revenue of AU$478.71 million company rose
52.1% to AU$83.8 million.
The company’s management has an annual recurring revenue guidance of AU$105 million to AU$111
million for financial year 2022.
The company has also acquired Webexpenses and Breathe.
ELMO’s mid-market solution was launched in the UK, leveraging the Webexpenses operational
footprint and the Breathe small business platform was launched in Australia.
ELMO Software has given a return of around 13% in the past six months and is currently
trading at AU45.22.
Lastly, MNF Group is an integrated telecommunications software and network provider.
The AU$616.41 million company’s clients include leading global innovators such as
Google, Twilio, and Zoom.
Its direct Business sells cloud phone, internet and mobile services directly to SMEs and residential
customers in Australia, as well as dedicated audio and video conferencing business.
In financial year 2021, the company’s overall revenue fell 5% to AU$218.7 million due to
lower global roaming and audio-conferencing usage.
The high-quality recurring revenue increased 12% to AU$113.2 million and recurring gross
profit lifted 14% to AU$68.1 million.
The company recently changed its name to Symbio Holdings Limited.
It also stated that the Company name and new ASX code will be effective from the commencement
of trading on Wednesday 24 November 2021.
Shareholders need to take no further action.
MNF Group has given a return of around 65% in the past six months and is currently trading
at AU$7.27.
Well, that’s all for now.
We will be back soon with our Buzzing Trends show to share the latest market insights with
you.
Till then, Stay tuned with Kalkine TV for more stock, business and economy related hot
trends.