Q3 2024 TomTom NV Earnings Call Transcript
Key Points
- TomTom NV (TMOAF) is witnessing growing interest in advanced safety features and automated driving technology, which require highly detailed near real-time maps.
- The enterprise business showed good growth, with revenue increasing by 13% year on year, attributed to the success of existing customers and continued commercial traction.
- TomTom NV (TMOAF) strengthened its partnership with NextBillion.ai and secured collaborations with GfK, Standard & Poor Global Mobility, and IVECO, highlighting the versatility and demand for its technologies.
- The company launched a premium Geocoding API aimed at improving efficiencies in last-mile logistics, enhancing customer satisfaction.
- Gross margin increased to 87% for the third quarter, up from 83% in the same period last year, due to a larger contribution from location technology in the revenue mix.
- TomTom NV (TMOAF) is facing a slowdown in the global automotive industry, with challenging near-term market conditions affecting car production volumes.
- Group revenue in the third quarter of 2024 decreased by 2% compared with the same quarter last year, with automotive operational revenue dropping significantly.
- Automotive business performance was negatively impacted by delays in the launch of new car models and a continued weakening of the global automotive industry.
- Consumer revenue declined by 16% year on year, reflecting ongoing challenges in this segment.
- Free cash flow was an inflow of EUR15 million, down from EUR30 million last year, indicating a decrease in cash generation capabilities.
Good afternoon, everyone. Welcome to our conference call. Today, we will be discussing the operational highlights and financial results for the third quarter of 2024, together with Harold Goddijn, our CEO; and Taco Titulaer, our CFO. Harold will begin by discussing the operational developments. Following that, Taco will provide insights into our financial results as well as our outlook. We will then proceed to your questions. As always, please note that Safe Harbor applies.
And with that, Harold, let me hand it over to you.
Yeah. Thank you very much, Freek, and welcome, ladies and gentlemen. Thank you for joining us today. I will take you through some of our recent developments and operational highlights, and then we hear from Taco about the financials.
We are facing a slowdown in the global automotive industry. Near-term market conditions are challenging. Carmakers are reducing inventories in certain markets and are delaying new
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