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TomTom delivered a mixed set of Q3 results with a miss on the revenue line while profitability benefitted from a one-off subsidy. However, FCF surprised positively by comfortably beating the consensus despite a €1m lag burden from the Maps restructuring. TomTom reiterated its guidance underpinned by the fairly decent results. Regardless of the above, negative sentiment dominates in the market with the stock down by 7%.
Companies: TomTom NV
AlphaValue
TomTom outperformed a strong auto market, enabling the company to deliver consensus-beating figures in the Q2 23. Profitability is enjoying the knock-on effects, but FCFs remain burdened by restructuring-linked payments from the Maps reorganisation. Against the background of two consecutive positive quarterly surprises, the company decided to raise its guidance for FY 23.
TomTom has reported its Q1-23 results, exceeding the consensus estimates. The company’s revenue reached €141m, a 10% yoy increase. Growth was primarily driven by the Location Technology segment, which saw a significant increase to €118m, reflecting a 12% yoy rise. Meanwhile, the Consumer business segment remained flat at around €23m. Overall, TomTom has had a strong start to 2023 and has reaffirmed its guidance for the year, with a mid-term sales target of €560m.
TomTom ended the year with success and looks confident for the year ahead. It seems that the investments are starting to pay off, as the numbers of new partnerships and collaborations are increasing. Longer-term prospects appear brighter, with the highest backlog in years (€2.4bn) and a slew of strategic partnership implementations.
As TomTom is exposed to Auto volumes and is undergoing a restructuring, the fact that it has maintained its outlook for FY22 and FY23 is reassuring. However, the scope of the FCF guidance has been modified to exclude a heavy restructuring outflow. In addition, the slight beat in sales mainly came from the Consumer business. On the bright side, FCF has broken-even this quarter driven by an increase in Auto operational revenues.
TomTom has provided Q1 22 results in line with consensus. The weaker Auto volumes impact has been offset by the strong momentum in Enterprise and a slower than expected decline in the Consumer business. TomTom is well set to achieve its flat FY22 guidance.
Even though TomTom warned the market in its previous quarter that its Q4 would be heavily impacted by the semiconductor shortage and the lower Auto volumes that result, the global Q4 results were a miss. The longer-term perspectives seem brighter, with the highest backlog in years (€1.9bn) and the implementation of a strategical partnership.
Tomtom has published disappointing Q3 results. Both revenues and EBITDA came in below consensus. EBITDA was expected to be a positive €3.9m but came in at a negative €5.3m, lower than the most pessimistic analyst. This was due to low Auto volumes, which directly impacted revenues, margins and expected cash flow.
Due to semiconductor supply constraints in the Automotive sector, the Q2 results were below expectations and the new guidance is discouraging investors. The stock is down 14% today.
The Q1 results were solid, led by the strong recovery of the Automotive sector to offset the dying Consumer activity.
TomTom’s Q4 20 results fell short of expectations, but the major element of the disappointment was at the FCF level in terms of 2021 guidance as well as a slower recovery in Automotive.
TomTom released a strong set of results for Q3 20, driven by a rebound in both Automotive and Consumer. The company also posted a profitability upbeat on the back of good cost control. The only disappointment, but manageable, was seen at the FCF level. Still, we keep a positive view on the stock which should benefit from cash generation reversal from Q4 onwards.
TomTom’s Q2 publication was reassuring, beating the street on its Automotive business, but most noticeably on profitability. We expect a positive gross margin development in the coming quarter driven by a recovery in its activity as well as cost containment measures playing positively on the operating margin and FCF generation.
Q1 20 earnings came in below consensus expectations on the back of a sharper hit from COVID-19, mostly driven by the lower Automotive activities. Q2 is expected to suffer the most and, while the company had already withdrawn its FY20 guidance, FCF is expected to be negative in 2020. Hopefully, the strong balance sheet of the company might help it to cope with this crisis.
Q4 publication was a mix of contrasting moving parts, with an underperformance for Consumer while Location Technology, fuelled by Enterprise, held back. The commercial momentum was also strong for the latter. The company missed the consensus at the EBTIDA level, on the back of higher investment to support its technology.
Research Tree provides access to ongoing research coverage, media content and regulatory news on TomTom NV. We currently have 33 research reports from 1 professional analysts.
Journeo has confirmed record results for FY23A, in-line with recent upgraded expectations across the board. FY23A revenue increased significantly by 118% to £46.1m (including 20% organic growth) and Adj PBT increased 270% to £4m, representing a near doubling of the Adj PBT margin. Journeo has positioned itself for a period of sustained growth following the transformational Infotec acquisition, the bolt-on MultiQ acquisition and ongoing R&D in the existing business. Journeo looks compelling on an
Companies: Journeo plc
Cavendish
Craneware is the market leader in value cycle SaaS provision in the US with a 40% market penetration and the ambition to become ubiquitous in US hospitals. The shackles of Covid disruption, digestion of the Sentry acquisition, and the transitioning of its customers to the fully cloud based Trisus platform, have fallen away and opened up new sales opportunities for the group. While the shares have out-performed strongly, multiples look reasonable compared with peers. We calculate a DCF based fair
Companies: Craneware plc
Capital Access Group
In 2023, the company delivered strong 13% organic constant currency revenue growth and Adjusted EBITDA in line with expectations, even after including one-off inventory provisions.
Companies: Big Technologies PLC
Zeus Capital
Companies: CML Microsystems Plc
Shore Capital
Companies: FOG PEB KBT EMR TIME GETB JNEO
The trading update confirms revenues in line with our expectations. Excess inventory flow through and market softness in China have impacted CML’s core business, but Microwave Technologies Inc (MwT) is performing ahead of expectations. The net effect, along with MwT acquisition related costs, is that Reported PBT and EBITDA are to be lower than expectations, but not substantially so. The long-term investment case is founded upon the opportunity in next-generation wireless and, with £18m cash and
Progressive Equity Research
Companies: Nanoco Group PLC
Turner Pope Investments
Nanoco, the world-leading provider of cadmium-free Quantum Dot technology, has reported positive 1H24 results, and stated that FY24 performance is expected to be in-line with market expectations. We reiterate our FY24E forecasts. Operationally, the company has achieved strong progress over the past six months, and the interims statement includes further progress on the company’s next-generation revenue programmes being implemented post period end. We maintain our 60.2p price target.
GetBusy’s FY23 results show organic revenue growth of +10% to £21.1m, FY23 adjusted EBITDA +£0.1m ahead of our +£0.3m upgrade at the January trading update, and a promising outlook that leads us to reiterate our FY24E forecasts. At constant currency, ARR grew +10% yoy to £20.5m, recurring revenue grew +12% to £20.3m, and net revenue retention of 100.0% per month reflects upselling and price increases, with gross monthly churn of 0.8% per month vs 0.9% in FY22. Within SmartVault, the July 2023 la
Companies: GetBusy Plc
Companies: PMG DUKE CMCL BOOM
Companies: FOG TND BVXP ACC HDD
Broadcast playout automation solutions provider Pebble Beach has reported confident FY23 results to Dec 2023 in line with updated January trading update expectations, and has announced the much-anticipated Project Oceans will launch as PRIMA (Platform for Real-time Integrated Media Applications) in April 2024. This underpins a mid-term 80% recurring revenue ambition and expansion in addressable market. FY23 delivered +11% revenue growth to £12.4m, which benefitted from the unwind of defensive in
Companies: Pebble Beach Systems Group PLC
Companies: LPA SOLI NANO QTX
Sondrel has announced it has secured an additional £2m convertible loan note with ROX Equity Partners to fund near-term payroll and working capital needs. The terms are similar to the ones agreed for £0.9m CLN in Feb 2024 with a 15% interest rate, a three-year repayment term, and is expected to convert into ordinary shares at 10 pence each. The proposed fundraise that is open to existing shareholders has now increased from £6.5m to £8.5m (including the proceeds from the CLNs), with a subsequent
Companies: Sondrel (Holdings) Ltd.
Companies: BILN IGP RBN SBTX
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