By Mathias de Rozario
(Reuters) -Dutch digital mapping specialist TomTom lifted the bottom end of its 2025 revenue guidance on Tuesday, after a better than expected performance in its core automotive business helped it beat market estimates in the second quarter.
The location data pioneer, which started by providing a navigational tool for turn-by-turn directions, has gone through major restructuring and is now developing high-definition self-driving maps that integrate consumer data and advanced driver assistance systems.
Its revenue fell 4% to 146.2 million euros ($170.8 million) in the second quarter, but beat the 145 million analysts had expected on average, aided by a smaller than expected drop in the automotive location technology business.
“The resilience of our customers is to thank for a relatively okay result for this quarter,” CEO Harold Goddijn told Reuters.
TomTom’s shares spiked as much as 10.9% in early trading and were up 2.3% by 0730 GMT.
Goddijn said the group had managed to reduce its cycle time — the time it takes between signing a contract and starting to deliver the products — by standardizing its product portfolio.
In late June, TomTom said it would cut 300 jobs as part of an organizational realignment, including wider use of artificial intelligence in its processes, as it implements a new product-led strategy. It had around 3,600 employees at the end of 2024.
“It will take a couple of months before we start seeing the results filtering through in the profit and loss account, but in 2026, most of the effects will be fully realized,” Goddijn said.
He said TomTom was using or working to implement AI in its map-making process, programming and AI-based solutions it was developing.
It forecast annual revenue of 535-565 million euros, after previously projecting the lower end of the range at 505 million. Revenue in the location technology arm should reach 465-490 million euros, it said, raising the bottom end by 25 million.
($1 = 0.8559 euros)
(Reporting by Mathias de Rozario in Gdansk, editing by Milla Nissi-Prussak)
