"We are pleased with the development of our Enterprise business. The continued adoption of our platform by customers like Microsoft and Esri is driving growth. With our mapmaking technology, based on the Overture open-source specification, we are delivering added value across a broadening set of use cases.
In contrast, our Automotive business has been facing challenging market conditions. Mainly as a result of lowered expectations for near-term volumes, our Automotive backlog decreased to €2.1 billion. Despite this, our deep and unique relationships with our customers give us good visibility across the range of medium-term commercial opportunities that we see continuing to develop. Our recently unveiled 3D map layers will enable us to support next-generation automated driving solutions and advanced visualization use cases across industries. As we unlock these opportunities, this will drive top-line growth and cash generation over time."
OPERATIONAL SUMMARY
• We partnered with Esri to deliver advanced location analytics to governments and businesses
• Our applications saw increased uptake in the fleet and logistics space by the likes of YellowFox and FleetLab
• We significantly enhanced TomTom Orbis Maps, offering immersive, true 3D lane geometry for any road
FINANCIAL SUMMARY FOURTH QUARTER 2024
• Group revenue decreased by 1% to €142 million (Q4 '23: €143 million)
• Location Technology revenue decreased by 2% to €122 million (Q4 '23: €125 million) • Automotive operational revenue increased by 6% to €88 million (Q4 '23: €83 million)
TOMTOM'S CHIEF FINANCIAL OFFICER, TACO TITULAER
"Our fourth-quarter top-line performance met our expectations, leading to stable full-year Location Technology revenue. While our Enterprise business realized marked growth, Automotive revenue was hampered by industry challenges. Free cash flow was influenced by the phasing of revenue in the fourth quarter, resulting in a higher-than-anticipated receivables position at year-end.
Given market conditions in Automotive, we continue to have limited visibility for 2025. We remain cautious of near-term developments and potential volume growth. In Enterprise, we are confident about the commercial traction across our platform, which is expected to continue to drive growth. Combined, we expect lower revenue performance and we will focus on initiatives to continue to deliver on our product roadmap and drive cost efficiencies. Our strong cash position stands us in good stead to invest and pursue commercial opportunities. We will be disciplined and focused on achieving break-even free cash flow in 2025.
We remain optimistic about the structural trends we see in the market. Electric vehicle adoption, self-driving advancements and the growth of location-based use cases across Enterprise domains all call for a deeper integration of our technologies. With our versatile product portfolio, we are well-positioned to capitalize on these trends as they materialize over the medium-term."
FINANCIAL SUMMARY FULL YEAR 2024
• Group revenue decreased by 2% to €574 million (FY '23: €585 million)
• Location Technology revenue decreased to €489 million (FY '23: €491 million)
• Automotive operational revenue decreased by 5% to €326 million (FY '23: €343 million)
• Free cash flow1 is an outflow of €4 million (FY '23: inflow of €32 million)
• Net cash decreased, mainly due to a €39 million share buyback cash-out, to €264 million (FY '23: €315 million)
• Automotive backlog decreased to €2.1 billion (FY '23: €2.5 billion)
TOMTOM'S CHIEF FINANCIAL OFFICER, TACO TITULAER
"Our fourth-quarter top-line performance met our expectations, leading to stable full-year Location Technology revenue. While our Enterprise business realized marked growth, Automotive revenue was hampered by industry challenges. Free cash flow was influenced by the phasing of revenue in the fourth quarter, resulting in a higher-than-anticipated receivables position at year-end.
Given market conditions in Automotive, we continue to have limited visibility for 2025. We remain cautious of near-term developments and potential volume growth. In Enterprise, we are confident about the commercial traction across our platform, which is expected to continue to drive growth. Combined, we expect lower revenue performance and we will focus on initiatives to continue to deliver on our product roadmap and drive cost efficiencies. Our strong cash position stands us in good stead to invest and pursue commercial opportunities. We will be disciplined and focused on achieving break-even free cash flow in 2025.
We remain optimistic about the structural trends we see in the market. Electric vehicle adoption, self-driving advancements and the growth of location-based use cases across Enterprise domains all call for a deeper integration of our technologies. With our versatile product portfolio, we are well-positioned to capitalize on these trends as they materialize over the medium-term."
Full press release:
https://corporate.tomtom.com/static-files/584375d2-cd7f-48ea-9fda-b74d0854d8ea
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