TomTom, today announced it is implementing changes to its financial disclosures with effect from 1 January 2021.
TomTom will change the presentation of operating expenses to provide more insight into its business activities. Research and development expenses will be disclosed as two categories: Geographical data (e.g. mapmaking platform and mapping content) and Application layer (e.g. navigation software, traffic and travel information, Maps APIs). Also, the previous disclosure of operating expenses included Amortization of technology and databases as a separate category which is less relevant going forward as the Tele Atlas map databases were fully amortized in 2020.
Additionally, Sales and marketing expenses are combined as one category and General and administrative expenses are presented as a separate category.
The definition of operational revenue1 is updated to exclude the movement of unbilled revenue. Operational revenue is now defined as IFRS revenue adjusted for the movement of deferred revenue. By removing the effect of timing of invoicing operational revenue will be better aligned with general market trends, such as car production volumes.
The restated quarterly figures for the period 2019 – 2020 are available on our website.
Restated figures on a full-year basis are presented below:
SOURCE: TomTom
