TomTom, a navigation and digital mapping company, has increased its outlook for 2022, as increased car production and higher location technology sales drove third-quarter results.
The Amsterdam-based group, whose customers range from major car companies to leading global tech firms, forecast full-year revenue of 505-520 million euros ($494-509 million), including 410-425 million euros from its core location technology business.
TomTom’s earlier guidance was for an annual revenue of 470-510 million euros, with 380-420 million euros generated from location technology.
TomTom’s clients include automobile giants such as Volkswagen, Renault and Hyundai Motor, and software giant Microsoft. TomTom is facing global chip shortage that has disrupted the automotive and electronics industries, as well as high cost inflation.
TomTom’s revenue rose 7 percent to 136.3 million euros in Q3 2022. TomTom’s location technology revenue increased by 14 percent to €108 million. The location technology business provides maps, traffic information and navigation software to carmakers, governments and tech firms. TomTom’s automotive operational revenue increased by 29 percent to €75 million.
TomTom’s quarterly sales were boosted by increased car production volumes in TomTom’s core markets.
TomTom has reiterated its revenue forecast for 2023, but lowered free cash flow guidance from at least 5 percent to break-even.
TomTom CEO Harold Goddijn said: “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.”