Raspberry Pi, the British maker of affordable microcomputers, reported stronger-than-expected profits in its first financial update since going public on the London Stock Exchange in June.
The company, which raised £178.9m through its initial public offering and joined the FTSE 250 index, saw its sales rise 61% year-on-year to $144m in the six months to June 30, while pre-tax profits remained flat at £10.8m.
The company’s shares rose more than 10% on Tuesday, settling at 371¼p, up 6.6%. Raspberry Pi sold 1.1 million units of its latest model, the Raspberry Pi 5, which launched in October 2023, contributing significantly to its first-half performance, which beat internal expectations.
Despite recovering from the supply chain disruptions caused by the pandemic, Raspberry Pi still faces challenges, particularly with regard to semiconductor supply. CEO Eben Upton explained that ongoing demand imbalances, caused by over-ordering during shortages, are slowly recovering.
Analysts at Jefferies noted that while the second half could be slightly weaker due to ongoing inventory corrections and lower-value product sales, the outlook for 2025 remains positive, with favorable memory pricing and higher sales expected.
Raspberry Pi was originally founded as a charity in 2008 to encourage more young people to study computer science, and has been a commercial success, with the Raspberry Pi Foundation retaining a 47% stake after its IPO. The company has expanded its offerings, including new products focused on AI devices, in partnership with Hailo AI, and its first cloud product, Raspberry Pi Connect, which allows remote access to devices for $6 per year.