Due to flat automotive demand, TomTom [TOM2] said it would see level sales this year as a backlog of auto orders expires. The company, which reported quarter and 2023 results last week, said the backlog was a record $2.7 billion at the end of the year.
“Our fourth-quarter results showed a modest growth in revenues, aligning with our forecasts. We also saw a rise in operating expenses for the quarter, due to a 10-million euro one-off reorganization charge resulting from the further streamlining of our R&D activities,” said Taco Titulaer, TomTom CFO, in a statement.
The company hopes that the recent roll out of Orbis Maps will spur growth. “During the fourth quarter, we commenced the commercial rollout of our TomTom Orbis Maps. Initially targeting our primary markets in Europe and North America, we’re now expanding geographic coverage and introducing new features to enhance the map further,” said Harold Goddijn, TomTom CEO, in an earnings call. “Towards the end of our Orbis development, we’ve, of course, reached out to existing customers with a view to prepare them for switching from the legacy product to the new product.”