Digital mapping specialist TomTom on Monday (Jul 17) raised its full-year revenue and free cash flow forecasts after the roll-out of its new maps was well received by the auto industry and generated better-than-expected quarterly results.

The Amsterdam-listed company’s shares jumped as much as 11.2 per cent to a three-month high of 8 euros, and were on track for their best day since July 2022.

TomTom has developed new maps and a platform that it said offers wider geographical coverage and faster updates, and which allows users to add and integrate its own data.

The Dutch company, which focuses on growth in next-generation vehicles and counts Volkswagen and Stellantis among its customers, posted an operating loss before interest and tax of 3.6 million euros (S$5.3 million) for the three months ending Jun 30, beating estimates of a 7 million euro loss.

Revenue at its automotive unit grew 52 per cent to 91 million euros, contributing 58 per cent to the group’s revenue of 157 million euros.

TomTom’s investments in maps and navigation technology for automated driving, which competes with Google Maps and German carmaker-owned map maker Here, are bearing fruit, chief executive Harold Goddijn told Reuters.

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“We have shared sample data with a number of core customers who are keen to evaluate the product,” he said. Big Tech, ride-hailing and delivery services were among those showing interest.

Although the roll-out of the maps platform has not yet been reflected in revenue, it has enabled TomTom to make efficiency gains through lower costs, said Goddijn.

To continuously improve products, the company is experimenting with artificial intelligence tools. “We are looking (at) how we can use large language models in map making and increase productivity there,” he said. TomTom now targets revenue of 570 million euros to 600 million euros this year, after previously forecasting 540 million euros to 580 million euros. Free cash flow is now seen at 5 per cent of revenue, after an earlier prediction of zero per cent to 5 per cent. Reuters