Amsterdam, the Netherlands, 15 July 2024, 7:00 AM CEST

Good progress amidst challenging market conditions 

"In the first half of the year, we saw the commercial launch of TomTom Orbis Maps with global coverage. These maps form a solid foundation for the strengthening of our competitive position. As a result, we see traction in our Enterprise business, with the uptake of the new maps expanding across both the private and public sectors.

As an important proof point of its quality, Microsoft decided to adopt TomTom Orbis Maps for their location technology needs. With our maps and traffic powering Microsoft’s enterprise and consumer offerings, millions of users will be able to benefit from their accuracy, reliability, and global coverage. 

Long-term automotive industry trends continue to support a deeper integration of our technologies into the vehicle over time. However, a combination of downward revisions for near-term car production volumes and delays in new model introductions has resulted in a generally less predictable market environment. In light of these developments, we now expect our full-year revenues to come in at the lower end of our guidance."

• Microsoft selected TomTom Orbis Maps, as well as our traffic and navigation, to power location-based features across its product suite

• Various companies chose our location technology to power their products and operations, including Qualcomm, Moody’s, Miovision, BMW Motorrad, and Bolt

• We entered the public sector market with TomTom Orbis Maps, licensing maps to the Australian Government

• The Volkswagen Group launched the first car models with our navigation software on board

• Group revenue decreased by 3% to €152 million (Q2 '23: €157 million)

• Location Technology revenue increased to €129 million (Q2 '23: €128 million)

• Automotive operational revenue decreased by 2% to €89 million (Q2 '23: €90 million)

• Free cash flow¹ is an outflow of €5 million (Q2 '23: inflow of €3 million)

• Net cash of €258 million (Q4 '23: €315 million)

"The developments in the first half of the year have led us to revise our expectations. To reflect lower Automotive operational revenues, we now expect both Group and Location Technology revenues for 2024 to come in at the lower end of the guided range and consequently are adjusting our free cash flow guidance downward. Furthermore, due to the lessened predictability in the automotive industry and longer-than-anticipated sales cycles in Enterprise, we are not yet able to realize our financial ambition by 2025. We will provide guidance for 2025 with the publication of our full-year 2024 results.

Financial performance in the second quarter was mixed. Our Enterprise business recorded a double-digit year-on-year increase in revenues, driven partly by a contract in the public sector. Automotive operational revenues declined year on year, partially explained by a one-off included in the comparative year. On a reported basis, the positive impact from the start-of-production of our contract with Volkswagen Group was more than offset by the aforementioned base year effect, resulting in a year-on-year revenue decline."

View the full TomTom second quarter 2024 results press release on our quarterly results website.