Raspberry Pi (RPI) H1 2024 earnings summary

Executive summary

• Achieved a successful IPO in H1 2024, raising $225m (£178.9m), including $40m (£31.4m) for the company, supporting technology development and supply chain resilience.

• 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 (cloud software), RP2350 microcontroller, and Pico 2.

• Expanded reseller network and direct OEM engagement, with major digital signage deployment at Heathrow and increased licensee royalty sales.

Financial highlights

• Unit volume up 31% year-over-year to 3.66 million units; Raspberry Pi 5 sold 1.1m units in H1.

• Gross profit increased 47% to $34.2m; adjusted EBITDA up 55% to $20.9m; adjusted operating profit up 44% to $15.7m.

• Gross margin declined to 23.8% (from 26.1% prior year) due to higher component sales and channel mix.

• Accessories and royalties saw significant growth, with accessory gross profit per board rising 38% and total gross profit from accessories up 74%.

• Adjusted diluted EPS rose 27% to 5.84c; net cash position of $40.4m, up 9% year-over-year.

Outlook and guidance

• Channel and customer inventory normalization expected to complete by year-end; higher unit volumes anticipated in H2, but with lower unit economics due to product mix.

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

• CapEx guidance remains at GBP 20 million ($10.1m) for the year, with similar expectations for next year.