Raspberry Pi (RPI) H2 2024 earnings summary

Executive summary

• Achieved a successful IPO in June 2024, raising $185M for the Foundation and $40M for new technology and supply chain resilience, with strong support from cornerstone investors.

• Launched a record 22 new products in 2024, including Raspberry Pi 5, Pico 2, Compute Module 5, Raspberry Pi 500, and the first paid software product, Raspberry Pi Connect.

• Completed recovery from pandemic-related shortages by end of Q1 2024, with inventory normalization and improved demand in Q4.

• Expanded global reseller network by 12% to 117, with increased direct OEM engagement and industrial market focus.

• Strong uptake of new products, especially Raspberry Pi 5, with 1.9M units sold in the year.

Financial highlights

• FY 2024 revenue was $259.5M, down 2% year-over-year; gross profit $63.2M, down 4%.

• Sold 7M boards in 2024, 5% lower than FY23, due to industry-wide destocking.

• Gross profit per board was $7.4, down from $8.6 in 2023, reflecting a higher mix of lower-margin products and increased component costs.

• Adjusted EBITDA reached $37.2M; adjusted operating profit was $26.5M.

• Ended the year with $45.8M in cash.

Outlook and guidance

• Channel inventory has normalized, with only limited OEM inventory pools remaining.

• Expecting a steady build in unit demand in 2025 as OEM inventory depletes and new design wins scale.

• Projecting a modest improvement in unit economics due to improved logic pricing and flat memory pricing.

• Gross profit per unit projected to increase year-over-year, supported by sufficient memory supply.

• Medium-term fundamentals remain positive, with increasing OEM contributions expected in 2026 and beyond.