Raspberry Pi (RPI) H1 2024 earnings summary

Executive summary

• Achieved a successful IPO in June 2024, raising $40m (£31m) for the company and $180m for the Foundation, enabling further investment in R&D and supply chain; FTSE 250 inclusion followed.

• Revenue rose 61% year-over-year to $144.0m, with gross profit up 47% to $34.2m and adjusted EBITDA up 55% to $20.9m, driven by strong Raspberry Pi 5 uptake and higher-margin product mix.

• Completed recovery from global semiconductor shortages, with most products now available ex stock and inventory normalization expected by year-end.

• Launched new products including the AI Kit (with Hailo), Raspberry Pi Connect (first cloud product), RP2350 microcontroller, and Raspberry Pi Pico 2.

• Expanded reseller base, increased direct OEM engagement, and transitioned enthusiast customers from Raspberry Pi 4 to 5.

Financial highlights

• Unit sales grew 31% to 3.66m; ASP for boards up 28% to $47.2; microcontroller sales up 30% to 2.15m units.

• Gross profit per unit increased to GBP 8.30 from GBP 7.70; gross profit up 47% to $34.2m; gross margin declined to 23.8%.

• Adjusted EBITDA up 55% to $20.9m; adjusted operating profit up 44% to $15.7m.

• Adjusted EPS up 27% to 5.84c; net cash position of $40.4m at period end, with a $40m undrawn revolving credit facility.

• Inventory increased to $145.7m, with strategic memory and logic chip purchases securing supply into H1 2025.

Outlook and guidance

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

• Anticipates higher unit volumes in H2, but expects unit economics to normalize as lower-priced products increase in mix.

• CapEx guidance remains at about $20m/£20m for the year, with similar expectations for next year.

• Profitability in H1 ahead of plan; full-year expectations unchanged.

• Continued product launches and initiatives planned to expand engagement in industrial and embedded markets.