TomTom (TOM2) Q4 2024 earnings summary

Executive summary

• 2024 saw mixed results: Enterprise segment grew strongly, leveraging key partnerships with Microsoft and Esri, while Automotive faced market headwinds and backlog reduction.

• Investments in mapping technology, software standardization, and advanced analytics positioned the company for future contract wins and efficiency.

• Enhanced product offerings included 3D map layers and AI-enabled updates, supporting next-generation automated driving and visualization use cases.

Financial highlights

• Q4 2024 group revenue was €142 million, down 1% year-on-year; full-year revenue declined 2% to €574 million.

• Location Technology revenue for 2024 was €489 million, nearly flat year-on-year; Automotive operational revenue was €326 million, down 5%.

• Enterprise revenue grew 9% to €161 million for the year; Consumer revenue declined 10% to €85 million.

• Gross margin for Q4 was 87% (down 1pp); full-year gross margin stable at 85%.

• Free cash flow for FY 2024 was -€4 million, compared to an inflow of €32 million in 2023; net cash at year-end was €264 million.

Outlook and guidance

• 2025 group revenue expected between €505 million and €565 million; Location Technology revenue between €440 million and €490 million.

• Free cash flow targeted at break-even for 2025.

• Focus on delivering product roadmap, cost efficiencies, and achieving break-even cash flow at midpoint guidance.

• Midterm optimism driven by EV adoption, self-driving tech, and demand for location-based solutions.

• Gross margin for 2025 expected to improve, targeting 88%.