Raspberry Pi (RPI) H1 2024 earnings summary

Executive summary

• Achieved a successful IPO, raising $225m ($40m for the company), strengthening the balance sheet and supporting future growth initiatives, with FTSE 250 inclusion.

• Strong H1 2024 performance with 61% revenue growth, 31% higher unit sales, and robust profitability, driven by Raspberry Pi 5, AI/ML products, and cloud software launches.

• Completed recovery from COVID-19-related supply chain shortages, with inventory normalization and a return to growth in the reseller base.

• Expanded product portfolio with first-party AI/ML hardware, cloud connectivity services, and the RP2350 microcontroller.

• Growth in Approved Reseller base and initiatives to accelerate direct OEM engagement.

Financial highlights

• Revenue rose 61% to $144.0m in H1 2024, with gross profit up 47% to $34.2m and gross margin at 23.8%.

• Adjusted EBITDA increased 55% to $20.9m; adjusted operating profit reached $15.7m.

• Unit sales reached 3.66m, up 31% year-over-year; Raspberry Pi 5 sold 1.1m units.

• Accessories gross profit per unit increased 38%, with total accessory gross profit up 74% to $4.1m.

• Ended H1 with $40.4m in cash, after IPO proceeds and $10m+ in CapEx.

Outlook and guidance

• Higher unit volumes expected in H2, driven by new product launches, but with lower unit economics as lower-priced products ramp.

• Channel and customer inventory normalization expected to be largely complete by year-end.

• Full-year expectations remain unchanged despite stronger-than-expected H1.