Amsterdam, the Netherlands, 14 October 2022, 7:00 AM CEST

TomTom reports revenue growth driven by Location Technology

"We recorded better-than-expected revenue in the third quarter, driven by our Location Technology business. In addition both Automotive and Enterprise secured key commercial awards. An important milestone is our new partnership with Hyundai Motor Group, which sees all cars in Europe come equipped with our maps and traffic.

We are satisfied with the operational and strategic progress we have made so far this year. During the quarter we finalized the realignment of our Maps organization. Our focus on transforming the mapmaking process to a highly automated platform, paves the way toward a new era in mapmaking. We look forward to providing an update about what this means for our Enterprise and Automotive businesses at our Capital Markets Day on the 2nd of November."

• Our maps and traffic will power the navigation and advanced driver assistance systems of all vehicles of all Hyundai Motor Group brands in Europe, establishing a 100% take rate

• We matured our Maps APIs portfolio enabling developers to support logistics operations optimizations in our Enterprise markets

• TomTom and PTV Group teamed up to provide the German transport authorities with data and tools to improve the safety on German roads

• Group revenue increased by 7% to €136 million (Q3 '21: €127 million)

• Location Technology revenue increased by 14% to €108 million (Q3 '21: €95 million)

• Automotive operational revenue increased by 29% to €75 million (Q3 '21: €58 million)

• Free cash flow excluding restructuring is an inflow of €8 million (Q3 '21: outflow of €14 million)

• Net cash of €330 million (Q2 '22: €329 million)

"We are very pleased with the performance this quarter, especially with the development of our Automotive revenue. Strong revenues translated into a better-than-expected free cash flow.

For full year 2022, we expect our revenue, both on group level as well as for Location Technology, to outperform our initial guidance. Free cash flow excluding restructuring is expected to be around -2% of group revenue, an improvement compared with the guidance provided at the beginning of the year.

Macroeconomic uncertainties and inflationary pressures have an impact on global car production as well as our cost levels. For 2023, we reiterate our revenue guidance, but lower the free cash flow guidance to break-even.”

View the full TomTom third quarter 2022 results press release on our quarterly results website.