Digital mapmaker TomTom increased its revenue and cash flow outlook for the year after reporting a smaller-than-expected operating loss for the second quarter driven by strong demand from carmakers.
The Amsterdam-based firm, which provides maps and navigation tools to Volkswagen, Hyundai and Amazon, now expects revenue between €570 million and €600 million for the year. Previously it forecast €540 million to €580 million.
Free cash flow is expected to be around 5% of revenue for the year, up from the earlier outlook of 0-5%.
TomTom has invested heavily in map and navigation technology for self-driving cars to compete with Google Maps and HERE.
The company delivered new testing maps to selected partners, including ride-hailing and car companies, CEO Harold Goddijn said. He added "The market has welcomed our new product offering with excitement."
TomTom reported an operating loss before interest and tax (EBIT) of €3.6 million for the second quarter, compared to the company's forecast of a €7 million loss.
