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Raspberry Pi (LSE:RPI), a leading provider of low-cost, high-performance computing solutions, has announced robust financial results for the first half of 2024. The company reported a stronger-than-expected performance with a gross profit of $34.2 million and an adjusted EBITDA of $20.9 million, marking a 55% increase compared to the supply-constrained first half of 2023.
Financial Performance Highlights
- Gross Profit: $34.2 million, reflecting strong profitability.
- Adjusted EBITDA: $20.9 million, up significantly from H1 2023.
- Unit Sales: Although volumes were slightly below expectations, the sales skew towards higher-margin product variants resulted in improved unit economics.
Operational Milestones
Raspberry Pi achieved several key milestones in the first half of 2024:
- IPO and FTSE 250 Index Inclusion: The company successfully raised £178.9 million (approximately $225 million) through its initial public offering (IPO), with £31.4 million ($40 million) allocated for the company itself. Raspberry Pi's inclusion in the FTSE 250 Index was confirmed following the September FTSE quarterly review. Additionally, the company was awarded the London Stock Exchange’s Green Economy Mark, recognizing the energy efficiency benefits of its products.
- Supply Chain Recovery: Raspberry Pi completed its recovery from the pandemic-related supply chain shortages, with almost all of its Single Board Computers (SBCs) and Compute Module products now readily available in the market.
- New Product Launches:
- Raspberry Pi 5: Following its launch in late October 2023, the Raspberry Pi 5 sold 1.1 million units in H1 2024.
- AI Hardware and Cloud Connectivity: The company launched the Raspberry Pi AI Kit, in partnership with Hailo, and debuted a cloud connectivity product, Raspberry Pi Connect, which has already attracted 50,000 users since its May 2024 launch.
- Microcontroller Expansion: The production of the RP2350 microcontroller ramped up, supporting the introduction of Raspberry Pi Pico 2 and other partner hardware products.
Outlook for H2 2024
Raspberry Pi had initially anticipated that its performance would be weighted towards the second half of the year, but its profitability in H1 exceeded internal expectations. Looking ahead, the company expects higher unit volumes in H2, driven by new product launches. However, a shift in product mix may lead to slightly lower unit economics.
The company also observed higher-than-usual customer and channel inventory levels but expects these to normalize by the end of the year. Despite these dynamics, Raspberry Pi remains confident that full-year expectations will be met, supported by strong demand for its innovative products.
