Q4 2024 TomTom NV Earnings Call Transcript
Key Points
- TomTom NV (TMOAF) successfully entered new market segments, including government and security markets, strengthening its position with traditional customers.
- Integration of TomTom's maps into Microsoft and Esri systems serves as a significant endorsement of their product and strategy.
- Enterprise revenue showed strong growth, increasing by 9% to EUR161 million, driven by higher product utilization and new customer traction.
- TomTom's new 3D map for automated driving received overwhelmingly positive feedback at CES, indicating strong market interest.
- The company is well-positioned to capitalize on trends such as the rise of electric vehicles and advancements in self-driving technology, which are expected to drive deeper integration of their technology.
- Automotive backlog decreased from EUR2.5 billion in 2023 to EUR2.1 billion in 2024 due to reduced expectations for near-term volumes and slower adoption of electric vehicles.
- Group revenue for the full year declined by 2% to EUR574 million, with automotive revenue decreasing by 4% due to industry headwinds and delays in new car model launches.
- Free cash flow saw an outflow of EUR4 million, influenced by low operational revenue in automotive and higher than anticipated receivables at year-end.
- Visibility remains limited in the automotive market due to ongoing uncertainty, impacting near-term development and volume growth expectations.
- Consumer revenue declined by 10% year-on-year, settling at EUR85 million, reflecting challenges in this segment.
Good day. Ladies and gentlemen, welcome to TomTom's fourth quarter 2024, results conference call. (Operator Instructions) Please note that this conference is being recorded. I will now turn the call over to your host for today's conference Freek Borst, Investor Relations. You may begin.
Thank you operator and good afternoon everyone. Welcome to our conference call today. We will be discussing our fourth quarter and full year 2024, highlights and financial results together with Harold Goddijn, our CEO and Taco Titulaer, our CFO.
First Harold will discuss our strategic objectives for the coming year. Following that Taco, will provide further insights into our financial results, our Automotive backlog and our office. We will then proceed to your questions. As always, please note that Safe Harbor applies.
And with that Harold, I'd like to hand it over to you.
Yeah, thank you
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