Digital mapping specialist TomTom has revised its revenue and free cash flow outlook for the year, following a better-than-expected performance in the second quarter. The Amsterdam-based company, known for its clients such as Volkswagen, Hyundai, and Amazon, now anticipates revenue between 570-600 million euros (USD 640-673 million) for the year, compared to its previous forecast of 540-580 million euros.
Additionally, TomTom expects its free cash flow to reach 5% of revenue for the year, up from the initial prediction of 0-5%. The company’s positive outlook is attributed to strong demand from the automotive industry.
TomTom has made significant investments in maps and navigation technology for autonomous driving, positioning itself in competition with Google Maps and German carmaker-owned mapmaker HERE. The company has been actively supplying new maps for testing and validation to selected partners, including ride-hailing and automotive groups.The introduction of these new products has been met with enthusiasm by the market, according to Harold Goddijn, CEO of TomTom.
In the second quarter, TomTom reported an operating loss (EBIT) of EUR 3.6 million, significantly lower than the company’s forecasted loss of EUR 7 million. The better-than-expected financial performance reflects the company’s successful navigation technology offerings and its ability to capitalize on the strong demand within the automotive industry.
TomTom’s positive trajectory indicates its growing prominence in the digital mapping sector, particularly in the context of autonomous driving.
