Second Quarter and Half Year 2023 Results
TomTom continues growth and increases 2023 outlook
TOMTOM’S CHIEF EXECUTIVE OFFICER, HAROLD GODDIJN
"Our Location Technology business performed well in the second quarter, showing continuing momentum and good growth. After a strong first half of the year, we are increasing our outlook for 2023 revenue and free cash flow.
The roll-out of our new maps is progressing according to schedule. We delivered the new maps to selected partners in key verticals, including ride-hailing and automotive, for testing and validation.
The market has welcomed our new product offering with excitement. It provides customers with the future-proof location technology required to power new, advanced applications across map visualization, search, traffic, and routing. As our phased roll-out progresses, we will unlock increasingly sophisticated features, faster update cycles, and broader geographical coverage."
TomTom's maps and APIs now power Alteryx's new cloud-based analytics solution, providing location insights through an easy-to-use map-based interface
We further expanded our Automotive ADAS portfolio with Live Speed Restrictions, supporting safer driving and helping OEMs deliver on safety requirements and regulations
The TomTom co-founded Overture Maps Foundation announced the core technical part of its map data offering by releasing specifications for a structured data model and data interoperability
FINANCIAL SUMMARY SECOND QUARTER 2023
Group revenue increased by 18% to €157 million (Q2 '22: €133 million)
Location Technology revenue increased by 22% to €128 million (Q2 '22: €105 million)
Automotive operational revenue increased by 28% to €90 million (Q2 '22: €71 million)
Free cash flow1 is an inflow of €3 million (Q2 '22: inflow of €0 million)
Net cash of €316 million (Q4 '22: €304 million)
(€ in millions, unless stated otherwise)
Operating result (EBIT)
Free cash flow1 (FCF)
FCF1 as a % of revenue
1 Free cash flow excludes restructuring payments related to the Maps realignment announced in June 2022.
TOMTOM’S CHIEF FINANCIAL OFFICER, TACO TITULAER
"We saw continued growth in Location Technology revenue in the second quarter. The Automotive business demonstrated robust underlying performance. Automotive operational revenue increased strongly, outperforming car production trends in our core markets. Enterprise revenue was in line with our expectations.
Operating expenses declined year on year, as the restructuring charge related to the realignment of our Maps organization affected our expenses last year. Underlying operating expenses were roughly flat, as efficiency gains were offset by inflationary pressures. The effective management of expenses, combined with a significant increase in revenue, resulted in positive free cash flow.1
Our performance in the first half of the year exceeded our initial expectations. As such, we are increasing our guidance. We now expect Group revenue to be between €570 million and €600 million, while Location Technology revenue is expected to grow to between €480 million and €505 million. On top of that, we are upgrading our free cash flow1 guidance to around +5% of group revenue."