By Anthony O. Goriainoff
TomTom NV said Friday that its third-quarter net loss narrowed, and that it was narrowing its 2022 free cashflow loss as a percentage of revenue guidance.
The Dutch navigational-technologies company said that its net loss for the period was 17.5 million euros ($17.1 million) compared with a loss of EUR20.8 million.
Revenue rose to EUR136.3 million from EUR127.5 million in the year-prior period. The company said that revenue was better than expected in the period and was driven by its Location Technology business.
TomTom said that macroeconomic uncertainties and inflationary pressures are hurting global car production as well as its cost levels.
The company said that 2022 free cashflow excluding restructuring is expected to be around -2% of group revenue. The company had previously guided for free cashflow as a percentage of revenue of around -5%.
The Dutch company said 2022 revenue for the year would outperform its initial guidance of EUR470 million to EUR510 million.
For 2023, the company backed its revenue guidance which it expects to be in the EUR500 million to EUR550 million range, but lowered free cash flow guidance to break-even.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
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