This report includes the following non-GAAP measures: gross margin, EBIT (margin), EBITDA (margin), adjusted net result, adjusted EPS and net cash, which are further explained on page 10 of this report.

TomTom's Chief Executive Officer, Harold Goddijn

“Combined Automotive, Licensing and Telematics revenue grew by 14% year on year, in line with our expectations. High margin recurring software revenue now accounts for 60% of group revenue and more than 75% of gross result in the quarter.

Automotive revenue came in strong because of overall growing car sales and new car models launched with our products. We are happy that the international motor press selected the PEUGEOT 3008 as the Car of the Year 2017 featuring our products.

We continued to make progress in Autonomous Driving during this quarter. Volvo selected our products for their Drive Me research programme and our HD Map and RoadDNA coverage was further extended.”

Outlook 2017

We are re-iterating our guidance for the year.

In 2017, we expect full year revenue of between €925 million and €950 million. Adjusted EPS² is expected of around €0.25.

We expect the combined revenue of the Automotive, Licensing and Telematics businesses to grow above 10% year on year in 2017, in line with our previous expectations of their combined revenue CAGR of 15% between 2016 and 2020.

We expect the level of investments (both CAPEX and OPEX) to show a modest increase compared with 2016³, excluding acquisitions.

Financial and business review

Revenue for the first quarter amounted to €213 million, 2% lower compared with the same quarter last year (Q1 '16: €217 million). Automotive, Licensing and Telematics jointly grew by 14% year on year, which was offset by lower Consumer revenue. Our gross margin equalled to 62% in the first quarter (Q1 '16: 57%). The net result for the quarter was a loss of €4.6 million, which translates to adjusted EPS¹ of €0.03.

Automotive & Licensing