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• Group Revenue: EUR140 million, a marginal increase from EUR139 million last year.

• Enterprise Segment Revenue: Grew by 18% to EUR42 million.

• Automotive Operational Revenue: Increased by 5% year on year to EUR83 million.

• Automotive IFRS Revenue: Declined by 4% to EUR80 million.

• Location Technology Segment Revenue: Grew by 2% to EUR121 million.

• Consumer Segment Revenue: Declined by 8% year on year to EUR90 million.

• Gross Margin: Increased to 88% from 86% last year.

• Operating Expenses: EUR117 million, down from EUR125 million last year.

• Free Cash Flow: Outflow of EUR3 million, improved from an outflow of EUR9 million last year.

• Net Cash Position: EUR257 million, compared with EUR264 million at the end of 2024.

• Warning! GuruFocus has detected 2 Warning Signs with TMOAF.

Release Date: April 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TomTom NV (TMOAF) reported a strong start to 2025 with growing revenues and solid strategic progress, particularly in the enterprise segment.

• The enterprise segment saw significant revenue growth of 18%, reaching EUR42 million, driven by increased adoption of location technology products.

• The automotive business is well-positioned to meet evolving carmaker needs, with a 5% increase in operational revenue year-on-year.

• TomTom NV (TMOAF) introduced 3D map layers, enhancing their product offerings for higher levels of vehicle autonomy.

• Gross margin improved to 88%, up from 86% last year, due to a greater contribution from high-margin location technology revenue.

Negative Points

• Automotive IFRS revenue declined by 4% to EUR80 million, despite operational revenue growth.

• The consumer segment experienced an 8% year-on-year decline in revenue, impacting overall performance.

• Current trade tensions and market uncertainties pose challenges to short-term predictability and car volumes in key markets.

• Despite strong enterprise growth, the weakening dollar could negatively impact future revenues, as 75% of enterprise revenue is dollar-denominated.

• No significant deals were signed for 3D maps in Q1, despite positive market interest and intense discussions with potential clients.

Q & A Highlights

Q: How is the shift towards software-defined vehicles impacting TomTom's business model and relationships with automotive clients? A: Harold Goddijn, CEO, explained that the shift towards software-defined vehicles is a gradual process, with carmakers moving towards more standardized and efficient software architectures. This transition allows TomTom to become a more product-focused organization, improving efficiency and reducing time to market. The company is adapting to this new reality by standardizing products and processes, which enhances repeatability and quality.