The TomTom logo and camera are seen on a vehicle in Eindhoven.
On Friday, Reuters raised its 2023 revenue forecast after posting better than expected fourth quarter revenue due to strong automotive performance.
After being hit by the global chip shortage that has disrupted the automotive and electronics industries, TomTom is starting to benefit from the recovery in global car production.
The increase in car production volumes and the ramp up of some contracts resulted in Automotive's revenues of 77 million euro, an increase of 64% compared to the same quarter last year, Chief Finance Officer Taco Titulaer said in a statement.
The Amsterdam-based firm's customers include Volkswagen and Microsoft, and forecast revenue for the current fiscal year ranges from 540 million euros to $588.33 million - $631.91 million with free cash flow of between 0% and 5% of the revenue.
The group had previously guided for a revenue of 500 -- 550 million euros, 425 -- 475 million euros from its core location technology business and free cash flow at breakeven.
The company posted revenue of 139 million euros for the quarter ended December 31, beating analysts' average forecast of 120 million euros.