TomTom (TOM2.AS) returned to profit in the first quarter, the Dutch navigation and digital mapping company said on Friday, as its location technology business gained momentum and automotive unit outperformed car production growth in its core markets.

TomTom, which counts Volkswagen (VOWG_p.DE), Renault (RENA.PA) and Microsoft (MSFT.O) among its clients, had been hit by soaring inflation and the global chip shortage that disrupted the automotive and electronics industries.

But the Amsterdam-based company said operating expenses declined year-on-year in the first quarter, helped by the reorganisation of its maps unit it announced last year.

“The decrease mainly reflects efficiency gains realized in the research and development activities for our geographic data,” TomTom said.

The company reported quarterly operating profit of 2.6 million euros ($2.88 million), while analysts polled by the company had forecast a loss of 12 million euros.

It had posted operating loss of 19.8 million euros in the first quarter of 2022 and a loss of 4.5 million euros in the fourth quarter.

Its first-quarter revenue rose 10% to 141 million euros, against analysts’ forecast of 132 million euros, driven by 12% growth in its biggest location technology unit and 34% growth in automotive.