TomTom, a navigation and digital mapping company, said its revenue rose 21 percent to €139 million in Q4 2022, lifted by 30 percent rise in Location Technology revenue of €118 million and 16 percent growth in Automotive operational revenue of €82 million.
TomTom’s revenue touched €536 million in 2022 as compared with €507 million in 2021. TomTom’s Location Technology revenue increased by 11 percent to €436 million and Automotive operational revenue grew by 11 percent to €296 million in 2022.
TomTom forecast revenue for the current fiscal year in a range of 540 million euros to 580 million euros ($588.33 million-$631.91 million), with free cash flow of between 0 percent and +5 percent of the revenue.
The telematics group had previously guided for a revenue of 500-550 million euros, with 425-475 million euros generated from its core location technology business, and free cash flow at breakeven. TomTom’s customers include Volkswagen and Microsoft.
TomTom expects revenue growth to continue, with a strong increase in Automotive revenues offsetting declines in both Consumer and Enterprise businesses. Enterprise business will show growth from Q4 2023 onward, TomTom said in its earnings report.
TomTom, headquartered in Amsterdam, faced challenged in the wake of the global chip shortage that has disrupted the automotive and electronics industries. TomTom is now starting to benefit from the recovery in global car production.
“Increased car production volumes and a further ramp up of some contracts led Automotive to generate revenues of 77 million euros in the quarter, an increase of 64 percent compared with the same quarter last year,” TomTom Chief Finance Officer Taco Titulaer said in a statement.
