Strong Automotive performance drives Q4 and 2022 revenue growth
TOMTOM’S CHIEF EXECUTIVE OFFICER, HAROLD GODDIJN.
"We recorded top-line growth for the full year. Our Automotive business consistently outperformed the market trend throughout the year, while Enterprise performed in line with our expectations. I am happy with the progress we made in 2022, which is underpinned by the introduction of the new TomTom Maps Platform and a record €2.4 billion Automotive backlog.
The rollout of our new platform and improved maps in 2023 will provide customers with wider geographical coverage, more detail, and faster updates. This will support further growth of our Location Technology revenue. Our recently announced collaboration with Amazon Web Services, Meta, and Microsoft is expected to help set a global standard for maps, benefiting customers of our Maps Platform."
OPERATIONAL SUMMARY
We introduced our new maps, which will offer significant improvements in quality and will therefore be able to power a wider variety of use cases for our customers.
We announced a new global deal to provide our maps, navigation software, and connected services to Stellantis’ next-generation digital cockpit platform
We co-founded the Overture Maps Foundation with Amazon Web Services, Meta, and Microsoft to establish an open standard for interoperable map data
FINANCIAL SUMMARY FOURTH QUARTER 2022
Group revenue increased by 21% to €139 million (Q4 '21: €115 million)
Location Technology revenue increased by 30% to €118 million (Q4 '21: €91 million)
Automotive operational revenue increased by 16% to €82 million (Q4 '21: €71 million)
Free cash flow1 is an outflow of €15 million (Q4 '21: inflow of €57 million)
FINANCIAL SUMMARY FULL YEAR 2022
Group revenue of €536 million (FY '21: €507 million)
Location Technology revenue increased by 11% to €436 million (FY '21: €394 million)
Automotive operational revenue increased by 11% to €296 million (FY '21: €266 million)
Free cash flow1 is an outflow of €29 million (FY '21: inflow of €24 million)
Net cash of €304 million (FY '21: €356 million)
KEY FIGURES
(€ in millions)
Q4 '22 Q4 '21 y.o.y. change FY '22 FY '21 y.o.y. change
Location Technology
117.6
90.6
30 %
436.4
394.0
11 %
Consumer
21.4
24.6
-13 %
99.9
112.9
-11 %
Revenue
139.0
115.2
21 %
536.3
506.9
6 %
Gross result
120.9
94.2
28 %
449.7
407.1
10 %
Gross margin
87%
82%
84%
80%
Operating expenses
125.4
129.6
-3 %
547.3
500.3
9 %
Operating result (EBIT)
-4.5
-35.3
-97.6
-93.2
Operating margin
-3%
-31%
-18%
-18%
Net result
-8.8
-38.8
-102.7
-94.7
Free cash flow1 (FCF)
-14.6
56.7
-29.2
23.5
FCF1 as a % of revenue
-10%
49%
-5%
5%
1 Free cash flow excludes restructuring charges related to the Maps realignment announced in June 2022.
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TOMTOM’S CHIEF FINANCIAL OFFICER, TACO TITULAER
"Fourth-quarter Automotive reported revenue increased sharply year on year, in part resulting from the evolution of our products, leading to a change in how we recognize revenue from new map subscription contracts. Automotive operational revenue increased by 16% year on year, outperforming the trend of car production volumes in our core markets. Enterprise exhibited an anticipated revenue decline.
Full-year group revenue increased in 2022. For 2023, we expect group revenue growth to continue, with a strong increase in Automotive revenues offsetting declines in both our Consumer and Enterprise businesses. We envision our Enterprise business to show growth from Q4 2023 onward.
In the fourth quarter, free cash flow was negatively affected by movements in working capital. We recorded an outflow of €29 million for full year 2022. In 2023, we expect to generate positive free cash flow1 of between 0% and +5% of group revenue, supported by growing revenues."
