Weighed down by decreasing revenue in both automotive and consumer markets, TomTom [TOM2] said its annual sales expectations will be in the lower range of its financial guidance at $536 to $569 million. In July, the company suspended its 2025 financial targets and 2024 revenue expectations because of a slowdown in worldwide auto demand.
“While the automotive industry continues to face headwinds affecting both 2024 revenue and backlog developments, revenues from our Enterprise business have increased. Since the commercial launch of TomTom Orbis Maps with global coverage, we have seen growing momentum in our Enterprise business,” said TomTom CEO Harold Goddijn.
In the third quarter, TomTom’s revenue fell to 140.7 million euros, which missed analysts’ goals of 142 million euros. The company’s loss was 4.1 million euros—down from 8.7 million euros last year.
Some company highlights during the quarter include strengthening its partnership with NextBillion.ai and collaborations with GfK, Standard & Poor Global Mobility and IVECO. TomTom also launched a premium Geocoding API tailored to improving last-mile logistics and enhancing customer satisfaction.
In addition, during a meeting with analysts, Goddijn said that trade tensions between China and the West aren’t helping the location market. The Biden administration has not only placed a 100 percent hike on electric vehicles, but has locked in steep hikes on Chinese imported goods. The European Union has followed suit, raising tariff rates with China.
