Raspberry Pi has reported remarkable financial performance in its first half-year as a public company, following a successful IPO.
- The company recorded a revenue increase of 61%, reaching $144 million in the first six months of the year.
- Pre-tax profits rose slightly to $10.8 million, despite a warning of slowing sales in the latter half of the year.
- Shares experienced a 6.4% rise, driven by a substantial increase in board sales volumes, particularly the Raspberry Pi 5 model.
- Raspberry Pi’s successful IPO not only raised significant capital but also secured a spot in the FTSE 250.
Raspberry Pi has reported remarkable financial performance in its first half-year as a public company, following a successful IPO. The firm achieved revenues of $144 million, reflecting a significant increase of 61% compared to the previous year. The company, however, cautioned investors of a potential slowdown in sales during the second half of the year, as demand begins to ‘normalise’.
Pre-tax profits climbed marginally to $10.8 million. CEO Eben Upton attributed the solid financial results to an ‘extraordinary team’ and a ‘world-class product set’. He highlighted the company’s future product releases and initiatives aimed at continued expansion. Upton, however, expressed concerns over high inventory levels, which were expected to stabilise by year-end.
The market responded positively, with Raspberry Pi’s shares rising by 6.4% to 371p. A driving factor behind this investor confidence was the 31% growth in total board sales volumes, bolstered by the newly launched Raspberry Pi 5, which achieved 1.1 million unit sales. Conversely, there was a noted decline in Raspberry Pi 4 and older legacy models.
Raspberry Pi’s strategic decision to increase research and development spending resulted in expanding its engineering team, growing from 46 to 61 employees. This investment reflects the company’s commitment to innovation and product development.
Raspberry Pi’s entry into the public markets has been a boon for the London Stock Exchange, where its shares surged by 40% on debut. The IPO was priced at 280p per share, endowing the company with a market capitalisation of £514.6 million. Further consolidating its market position, Raspberry Pi was included in the FTSE 250 and awarded the LSE’s Green Economy Mark for its energy-efficient computing solutions.
Raspberry Pi’s robust market entry and strategic growth initiatives position it well for future success despite the anticipated sales stabilisation.
