TomTom (TOM2) Q3 2024 earnings summary

Executive summary

• Q3 2024 group revenue was €141 million, down 2% year-over-year, with Location Technology revenue stable at €120 million and Automotive operational revenue declining to €69 million from €85 million.

• Enterprise segment grew 13% year-over-year, supported by new partnerships, product launches, and the introduction of TomTom Orbis Maps and a premium geocoding API.

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

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

• Automotive industry headwinds, including delayed model launches and destocking, continued to impact performance.

Financial highlights

• Group revenue for Q3 2024 was €141 million, with Location Technology revenue at €120 million, Automotive revenue at €78 million, Enterprise revenue at €42 million, and Consumer revenue at €21 million.

• Gross profit 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%.

• Net result was a loss of €4.4 million, compared to a €7.9 million loss in Q3 2023.

• Free cash flow as a percentage of revenue was 11% in Q3 2024.

Outlook and guidance

• Full-year group revenue guidance 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 revenue growth from new automotive automation features in 2026–2027.