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It’s been a bumpy road for Tomtom in 2020. While the navigation company’s Q3 results won’t offer much respite, even this cloud has its silver lining. In all, the Amsterdam-based map specialist pulled in a Q3 revenue of 148 million euros, a decrease of 10 percent year on year, but a significant sequential increase of 20 percent, compared to the hard-hitting second quarter of the year. Despite this glimmer of hope, the net result for Q3 was a loss of 67 million euros.
The real beacon of hope for Tomtom, however, seems to be coming from the automotive sector. The department brought in 66 million in revenue for the third quarter of 2020 – a 28 percent jump from Q2, and a 19 percent increase over Q3 2019. With this news, CEO Harold Goddijn has some renewed optimism, though cautious. “Market conditions continue to improve and we’re pleased that our Automotive business shows robust sequential operational revenue growth. For Q4, we expect that Automotive operational revenue continues to show strong sequential growth,” says Goddijn. He also announced that expectations for the automotive group are around 530 million euros but went on to say, “Although there have been notable sales improvements in recent months, we feel that the economic circumstances remain too uncertain to resume our share buyback program at the moment.”
Despite the market difficulties, brought on by the pandemic-ridden year, Tomtom also has more encouraging news as it looks to pad the bottom line. The location technology expert recently announced that it was doubling down on its partnership with ride-sharing juggernaut Uber, and would be integrating the Tomtom maps, traffic data and Maps APIs across Uber’s global platform, which accounts for more than 10,000 cities around the world. Additionally, Uber will serve as a trusted map-editing partner, to help update Tomtom’s map with route changes like new roads, turn restrictions, street closures and more – further enhancing the company’s quest to provide more accurate navigation and location experiences, routing, fares and arrival time estimates for all users.