Digital mapping firm TomTom (TOM2.AS) reported on Friday that it anticipates sales from its location technology segment to reach the lower end of its projected range of €490-520 million ($536-569 million) for the year, citing reduced demand for new vehicles impacting third-quarter earnings. The company also confirmed it expects overall 2024 revenue to land at the lower end of its €570-610 million guidance range.
Impact of Auto Market Slowdown
TomTom’s financial results reflect ongoing challenges in the global auto sector, which has seen slowing demand and diminished new car sales. This downturn led the company to withdraw its 2025 targets and revise its 2024 revenue projections earlier this year. The company’s shares have dropped over 20% since January as it invests heavily in its new mapping platform, TomTom Orbis, aimed at bolstering the automotive and location technology segments amid a decline in its consumer division.
Market and Product Development Context
Since its origins in turn-by-turn navigation, TomTom has expanded into developing high-definition maps for autonomous driving and advanced driver assistance systems. However, continued declines in the automotive market are weighing on growth; EU new car sales fell by 18.3% in August, reaching a three-year low.
Financial Figures
TomTom’s revenue for the third quarter totaled €140.7 million, falling short of analysts’ expectations of €142 million, with declines seen in both the automotive and consumer segments. The company’s pre-tax loss narrowed to €4.1 million, compared to an €8.7 million loss a year prior, and improved slightly on the forecasted €5 million loss.
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