Citing slow car sales in Europe and North America, TomTom [TOM2] reported a wider-than-expected loss in the first quarter.
“In the first quarter of 2024, revenue was comparable to the same quarter last year. While Location Technology revenue remained flat, we made significant progress in maturing our product offering and expanding our business development efforts,” said CEO Harold Goddijn, in a statement. “This quarter, we reached global coverage with TomTom Orbis Maps. With our new maps, we are extending our market reach, addressing a broader range of use cases and industries. We have expanded our sales funnel and are gaining momentum.”
In November, European automobile manufacturers association ACEA forecast a slowdown in new car sales in the European Union, according to Reuters. This was a blow to TomTom as automotive markets constitute 60 percent of the company’s total sales.
The company posted a loss, before interest and taxes, of 4.9 million euros, or $5.2 million, for the first three months of 2024, versus a profit of 2.6 million euros last year.
