Amsterdam, the Netherlands, 2 February 2024, 7:00 AM CET

TomTom delivers growth and strong cash flow in 2023

"We made good progress toward our goals in 2023, delivering revenue growth in Location Technology, improving our profitability, and bringing our new maps to market. We are excited to see growing interest from customers and prospects in TomTom Orbis Maps, which provide enhanced coverage, richness, and freshness.

From a commercial standpoint, we recorded robust order intake, culminating in a record €2.5 billion Automotive backlog. Combined with the significant and growing sales funnel we established in Enterprise there is a strong foundation for sustained revenue growth and improved profitability in the periods ahead."

• We joined forces with Microsoft to bring generative AI into the vehicle through the development of an AI-based conversational assistant, enabling improved interaction with infotainment, location search, and command systems

• We signed a new contract with Bridgestone Mobility Solutions powering their fleet management software with our full location technology stack, including EV data and routing products

• We announced a €50 million share buyback program in order to reduce our share capital

• Group revenue increased by 3% to €143 million (Q4 '22: €139 million)

• Location Technology revenue increased by 7% to €125 million (Q4 '22: €118 million)

• Automotive operational revenue increased by 1% to €83 million (Q4 '22: €82 million)

• Free cash flow¹ is an inflow of €5 million (Q4 '22: outflow of €15 million)

• Group revenue increased by 9% to €585 million (FY '22: €536 million)

• Location Technology revenue increased by 12% to €491 million (FY '22: €436 million)

• Automotive operational revenue increased by 16% to €343 million (FY '22: €296 million)

• Free cash flow¹ is an inflow of €32 million (FY '22: outflow of €29 million)

• Net cash of €315 million (FY '22: €304 million)

"Our fourth-quarter results showed a modest growth in revenues, aligning with our forecasts. We also saw a rise in operating expenses for the quarter, due to a €10 million one-off reorganization charge resulting from the further streamlining of our R&D activities.

Another considerable achievement in 2023 was the growth of our Automotive backlog, which grew to €2.5 billion. This increase can be attributed to a robust order intake, partially offset by customers’ downward revisions of near-term car production volumes.

For 2024, our projections are cautiously optimistic. We have a substantial sales funnel for TomTom Orbis Maps. Considering the typical sales cycle in the Enterprise segment, we anticipate a gradual increase in conversions to signed contracts throughout the year. We expect continued growth in our Location Technology revenue, along with an improvement in our free cash flow, based on our current strategic plans and the solidity of our business model."

View the full TomTom fourth quarter 2023 results press release on our quarterly results website.