TomTom (TOM2) Q3 2024 earnings summary

Executive summary

• Q3 2024 group revenue was €141 million, down 2% year-over-year, as the automotive industry faced challenging conditions with reduced inventories and delayed new model launches.

• Location Technology revenue remained stable at €120 million, with Enterprise business showing strong growth, highlighted by new partnerships and product launches such as TomTom Orbis Maps and a premium geocoding API.

• Automotive operational revenue declined to €69 million from €85 million year-over-year due to industry headwinds and delayed model launches.

• Free cash flow was €15 million, up from €13 million in Q3 2023, and net cash position improved to €270 million at quarter-end.

• Gross margin increased to 87% from 83% in Q3 2023, reflecting a higher contribution from software and content revenue.

Financial highlights

• Group revenue for Q3 2024 was €141 million, down 2% year-over-year.

• Location Technology revenue was €120 million, flat year-over-year; Automotive revenue fell 5% to €78 million; Enterprise revenue grew 13% to €42 million; Consumer revenue declined 16% to €21 million.

• Gross profit for Q3 2024 was €121.8 million, with a gross margin of 87%.

• Operating result (EBIT) was a loss of €4.1 million, improved from a €8.7 million loss in Q3 2023; EBIT margin was -3%.

• Free cash flow was €15 million, 11% of revenue, and net cash position at quarter-end was €270 million.

Outlook and guidance

• Full-year group revenue guidance is maintained at €570–610 million, with Location Technology revenue expected at the lower end of €490–520 million.

• Free cash flow guidance for the full year reiterated at 1–5% of group revenue.

• Anticipates increased deal activity and order intake in the next 6–18 months, with revenue impact expected in H2 2026 and 2027.