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TomTom: Q1 2023 Results

TomTom records solid growth in location technology


“Our location technology business continues to gain momentum in the first quarter, and we are off to a good start to the year.

The new TomTom Maps platform, announced last year, will enable further expansion into the enterprise and automotive markets. The new maps provide global coverage, richer attribution, and faster data integration, bringing great value to our customers and partners.

We plan to gradually roll out new maps across regions and markets, adding features to support increasingly sophisticated use cases. We stepped up our sales and marketing efforts during the quarter in anticipation of the start of the rollout. “

Operation overview

  • We have deepened our partnership with SAP to integrate the Maps API with cloud-based SAP HANA Spatial Services.
  • Our new Navigation SDK has been well received and is gaining traction in enterprise markets such as Fleet & Logistics, Ride-hailing and Food Delivery.
  • Doubled its installed base of advanced driver assistance systems (ADAS) to over 10 million autonomous vehicles, outpacing market growth
  • Sale of Cyient Ltd. stake for a total of €15 million

First Quarter 2023 Financial Summary

  • Group revenue increased by 10% to €141 million (Q1 2022: €128 million).
  • Location Technology revenues increased 12% to €118m (Q1 2022: €105m).
  • Automotive operating revenues increased by 22% to €84 million (Q1 2022: €68 million).
  • Free cash flow 1 at inflow of €10m (Q1 2022: outflow of €23m)
  • Net cash of €321 million (Q4 2022: €304 million)

key figure


“Location Technology revenues increased year-over-year in the first quarter. Our Automotive business grew on a reported basis. The 22% year-over-year increase in automotive operating revenues outpaced vehicle production growth in our key markets, and the Enterprise business performed as expected.

Operating expenses decreased year-on-year, primarily as a result of the map organizational restructuring announced last year. Gains from efficiencies realized in the mapping platform were partially offset by continued investment in the application layer and sales and marketing efforts.

Net cash position improved during the first quarter due to a one-time gain from the sale of an equity stake in Cyient Ltd.

We are confident that we can implement our guidance, and we will repeat it today. Supported by earnings growth, the Group expects to generate positive free cash flow1 in the range of 0% to 5% of Group earnings this year. “

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