By TomTom, the mapmaker company, reported an increase in revenue for the fourth quarter and projected strong growth for 2023 in its location technology business. The company’s shares rose by 11% to EUR7.0 at 0929 GMT, indicating a positive market response to the news.
Revenue Growth and Projections
Group revenue for the fourth quarter reached EUR143.4 million, compared to EUR139.0 million in the same period the previous year. The full-year revenue also showed growth, increasing by 9% to EUR584.8 million.
TomTom’s location technology business performed exceptionally well, with a revenue increase of 7% in the fourth quarter (EUR125.2 million) and 12% for the entire year (EUR490.7 million).
Looking ahead, the company expects to achieve revenue ranging from EUR570 million to EUR610 million in the coming year. The location technology segment is projected to contribute between EUR490 million and EUR520 million to this overall revenue.
Furthermore, TomTom reaffirmed its earlier guidance of EUR600 million in revenue from location technology for the year 2025.
Net Loss Improvement
Despite the positive revenue growth, TomTom reported a net loss of EUR11.6 million for the quarter, an improvement from the previous loss of EUR8.8 million. The total loss to date has decreased significantly, from EUR102.7 million to EUR21.0 million.
Positive Outlook
Harold Goddijn, the Chief Executive of TomTom, commented on the company’s performance, stating, “We made good progress toward our goals in 2023, delivering revenue growth in location technology, improving our profitability, and bringing our new maps to market. Combined with the significant and growing sales funnel we established in enterprise, there is a strong foundation for sustained revenue growth and improved profitability in the periods ahead.”
In conclusion, TomTom’s strong performance in the fourth quarter of 2023, particularly in its location technology business, has driven revenue growth and improved its profitability. The company remains optimistic about its future prospects, with a positive outlook for sustained revenue growth and profitability in the coming years.
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